Axalta reports third-quarter earnings and revenue below expectations
Fourth-quarter net sales are guided roughly flat from a year earlier, and the company says it remains confident in its proposed AkzoNobel combination.
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Axalta reported third-quarter earnings per share (EPS, the profit attributable to each share) of $0.63. That was $0.08 below expectations. Revenue came in at $1.31 billion, against $1.36 billion expected.
For the fourth quarter of 2026, Axalta expects net sales roughly flat from a year earlier. It expects adjusted earnings before interest, taxes, depreciation and amortisation (Adjusted EBITDA) of $254 million to $264 million, and adjusted diluted EPS of about $0.55. For the full year, it expects net sales growth in the low single digits, Adjusted EBITDA of $1.10 billion to $1.11 billion, adjusted diluted EPS of about $2.45, and free cash flow of about $450 million.
Chief Executive Officer and President Chris Villavarayan said the company remains confident in the value of its proposed combination with AkzoNobel.
Revenue below expectations, and an outlook that shows little sales growth, leave one open question. It is whether the guided free cash flow of about $450 million for 2026 holds up on a softer sales trend while the AkzoNobel deal moves forward.
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