Despite flat quarter-to-quarter net income and net sales, Philadelphia-based Axalta (NYSE: AXTA) reported Q3 2025 was its second straight quarter of records for adjusted diluted earnings per share (EPS) and adjusted EBITDA.
Net income and net sales remained stagnant at $110 million and $1.3 billion, respectively, across both Q2 and Q3 2025, according to the paint coating and tint manufacturing company’s financial results released Oct. 28.
But adjusted diluted EPS rose from $0.64 to a record $0.67, and adjusted EBITDA climbed from $292 million to $294 million from Q2 to Q3 2025.
The Securities and Exchange Commission (SEC) defines adjusted diluted EPS as diluted EPS from continuing operations before restructuring, special governance and other charges.
The record adjusted diluted EPS principally stemmed from lower interest expenses and fewer outstanding shares, Axalta said.
The SEC defines EBITDA as net income before income from discontinued operations, net of income taxes; provision for income taxes; net minority interest and other expenses; net interest income expenses; and depreciation and amortization expenses plus net interest and investment income. The SEC defines adjusted EBITDA as EBITDA that factors in restructuring charges, non-cash options, and restricted stock expenses.
Axalta’s mobility coatings segment’s sales slipped by 2% quarter over quarter, falling from $469 million to $460 million, mainly due to “volume softness,” according to Axalta’s financial results. However, the company’s refinish unit revenue increased 1% during the same time frame, from $514 million to $517 million.
The mobility coatings business area provides coating technologies for light vehicle and commercial vehicle OEMs.
Axalta in Q3 2025 completed $100 million worth of share repurchases. The 3.3 million repurchased shares compose 62% of the 5.3 million total shares bought by the company through the first nine months of 2025. The firm stated it plans to supercharge its repurchase amounts in Q4 2025, by deploying “up to $250 million” during the current quarter.
“We executed another strong quarter delivering record Adjusted EBITDA and Adjusted Diluted EPS. Our results reflect our focus on operational excellence while the team has done an exceptional job navigating the challenging macroeconomic environment,” Axalta President and CEO Chris Villavarayan said in a statement. “We have now delivered 12 consecutive quarters of Adjusted EBITDA and Adjusted EBITDA margin growth year-over-year and are well prepared for 2026.”
The company anticipates slight dips in its adjusted diluted EPS and adjusted EBITDA from Q3 to Q4, of $10 million and $0.07, respectively, according to Axalta’s projections.
Brian Bradley