Axalta Mobility Sales Hit Record as Performance Coatings Falls

The Tip Desk · October 31, 2026 · 3 min read

Mobility Coatings net sales reached a record $493 million in the third quarter as Performance Coatings sales slipped $10 million year over year.

Axalta Coating Systems Ltd. (AXTA), a global coatings company, posted third-quarter net sales of $1.3 billion, up 2% from a year earlier, as Mobility Coatings set a quarterly sales record and Performance Coatings reversed a second-quarter gain.

The company said the 2% increase followed a 3% year-over-year rise in the second quarter. Volume growth in three of four regions, favorable foreign currency, acquisitions and positive price mix lifted sales, partly offset by volume declines primarily in Europe.

Mobility Coatings net sales were $493 million, up 7% year over year, after a 1% increase to a then-record $474 million in the second quarter. Light Vehicle sales rose 2%, driven primarily by favorable currency. Commercial Vehicle net sales increased 24% to $119 million on higher Class 8 production in North America.

Mobility Coatings Adjusted EBITDA was $94 million, a third-quarter record, with a 19.0% margin, 100 basis points higher than a year earlier. The company said stronger volumes and lower operating expenses more than offset variable cost inflation and unfavorable price mix.

Performance Coatings net sales were $818 million, down $10 million year over year, after a 4% increase to $872 million in the second quarter. Lower Refinish volumes in Europe more than offset currency, acquisitions and price mix. Outside Europe, the company said demand remained generally stable, with sales down low single digits in North America and up high single digits in Latin America and Asia Pacific.

Refinish net sales declined 2% to $504 million, reversing a 6% year-over-year increase to $545 million in the second quarter. Industrial net sales increased 1% to $314 million, primarily on volume growth in Asia Pacific.

Performance Coatings Adjusted EBITDA was $188 million, compared with $211 million a year earlier, and margin was 23.0%, versus 25.5%. The company attributed the decline to lower volumes, variable cost inflation and investments supporting recently awarded business wins, partly offset by lower operating expenses, pricing and acquisitions.

Consolidated Adjusted EBITDA was $282 million, down 4% from a year earlier, with a 21.5% margin, reversing a 5% year-over-year increase to a record $305 million in the second quarter. Net income was $95 million, down $15 million year over year, with a 7.2% margin. The company said the decline was primarily driven by an incremental $14 million of merger and acquisition-related expenses. Diluted EPS was $0.44. Adjusted Diluted EPS was $0.63, down 6% year over year, after a record $0.72 that was up 13% in the second quarter.

Cash from operations was $135 million, in line with the prior year. Free cash flow was $92 million, up 3%, inclusive of about $21 million of incremental merger and acquisition-related cash costs. Total net leverage was 2.1x, the lowest in Axalta’s history, down from 2.2x at the end of the second quarter.

For the fourth quarter, Axalta projects net sales about flat year over year and Adjusted EBITDA of $254 million to $264 million, with Adjusted Diluted EPS of about $0.55. For full-year 2026, it projects low single-digit sales growth, Adjusted EBITDA of $1,100 million to $1,110 million and Adjusted Diluted EPS of about $2.45. Chief Executive Officer Chris Villavarayan said the company remains focused on disciplined execution and is confident in the value-creation opportunity associated with its proposed combination with AkzoNobel.