Axalta (NYSE: AXTA) reported its net income and net sales dipped by 3% year-over-year in Q2 2025, but the company set new records for adjusted diluted earnings per share (EPS) and adjusted EBITDA, besting by $1 million the previous adjusted EBITDA record set a year ago, the company announced July 30.
Net income slid to $110 million, compared to $113 million in Q2 2024; and net sales decreased to $1.3 billion in Q2 2025. However, adjusted diluted EPS rose by 5% to $0.64; and adjusted EBITDA rose from $291 million to $292 million, year-over-year, for the Philadelphia-based paint coating and tint manufacturing company. Adjusted diluted EPS also jumped 5 cents over the Q1 2025 price.
The Securities and Exchange Commission (SEC) defines adjusted diluted EPS as diluted EPS from continuing operations before restructuring, special governance, and other charges.
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 posted a 1% sales increase in Q2 2025 over Q2 2024, increasing to $469 million, while the company’s refinish unit saw revenue decline 6% year-over-year to $514 million, catalyzed primarily by “organic net sales decline” in North America.
The mobility coatings business area provides coating technologies for light vehicle and commercial vehicle original equipment manufacturers.
Q2 2025 sales generated by Axalta’s acquisition of CoverFlexx from Transtar Holding Company, announced in Q3 2024, partially offset the above decreases, Axalta said. CoverFlexx manufactures and sells coatings for automotive refinish and aftermarket applications, geared toward economy customers in North America.
“We delivered another excellent quarter, setting new records for Adjusted EBITDA and Adjusted Diluted EPS,” Axalta President and CEO Chris Villavarayan said in a statement. “Our performance reflects Axalta’s drive for operational excellence, and our commitment to meet financial targets and create value through our A Plan objectives.”
The “2026 A Plan” refers to the company’s three-year 2024-2026 strategy.
Axalta’s A Plan targets include net sales growth of more than $500 million compared to actual 2023 financial results, an adjusted EBITDA margin of greater than 21%, a net leverage ratio (net debt divided by adjusted EBITDA) of 2.0x to 2.5x, a return on invested capital of approximately 15%, and diluted earnings per share (EPS) of greater than 60% compared to actual 2023 financial results.
Brian Bradley