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Axalta's Earnings and Revenues Surpass Estimates in Q4, Up Y/Y
AXTAAxalta ting Systems .(AXTA) ZACKS·2025-02-05 14:21

Core Viewpoint - Axalta Coating Systems Ltd. reported strong earnings growth in Q4 2024, surpassing expectations, with a notable increase in adjusted EBITDA and cash flow, despite some challenges in specific segments [1][2][5][6]. Financial Performance - Q4 2024 earnings per share (EPS) were 63 cents, up from 33 cents year-over-year, and adjusted EPS was 60 cents, up from 46 cents, exceeding the Zacks Consensus Estimate of 51 cents [1] - Revenues for Q4 2024 rose approximately 1% year-over-year to 1,311million,beatingtheZacksConsensusEstimateof1,311 million, beating the Zacks Consensus Estimate of 1,296.5 million, despite a 1% headwind from foreign currency fluctuations [2] - Adjusted EBITDA increased by 10% year-over-year to 275million,withanadjustedEBITDAmarginimprovementof170basispointsto21275 million, with an adjusted EBITDA margin improvement of 170 basis points to 21% [2] Segment Performance - Performance Coatings unit sales decreased by around 1% year-over-year to 843 million, falling short of the consensus estimate of 857millionduetolowervolumesandunfavorablecurrencyimpacts[3]−MobilityCoatingsunitsalesincreasedbyapproximately4857 million due to lower volumes and unfavorable currency impacts [3] - Mobility Coatings unit sales increased by approximately 4% year-over-year to 468 million, driven by strong light vehicle volume performance in China and Latin America, exceeding the consensus estimate of 438million[4]Full−YearResults−Forthefullyear2024,Axaltareportedearningsof438 million [4] Full-Year Results - For the full year 2024, Axalta reported earnings of 1.78 per share compared to 1.21pershareinthepreviousyear,withnetsalesincreasingaround21.21 per share in the previous year, with net sales increasing around 2% year-over-year to 5.3 billion [5] Cash Flow and Debt - At the end of 2024, cash and cash equivalents stood at 593million,a15593 million, a 15% increase year-over-year, while long-term debt decreased by roughly 2% to 3,401 million [6] - The company generated cash flow from operations of 576millionin2024,slightlyupfrom576 million in 2024, slightly up from 575 million in the prior year [6] Outlook - For Q1 2025, Axalta expects adjusted EPS of approximately 54 cents and flat net sales year-over-year, with adjusted EBITDA forecasted at around 265million[7]−Forthefullyear2025,adjustedEPSisprojectedtobeintherangeof265 million [7] - For the full year 2025, adjusted EPS is projected to be in the range of 2.50-2.60,withadjustedEBITDAexpectedbetween2.60, with adjusted EBITDA expected between 1,150-1,175millionandnetsalesforecastedat1,175 million and net sales forecasted at 5,350-$5,400 million [7] Stock Performance - Axalta's shares have increased by 17.2% over the past year, contrasting with a 16.3% decline in the Zacks Chemicals Specialty industry [8]