Axalta Coating Systems Ltd

Axalta Coating Systems reported second-quarter revenue of $1.35 billion, up 3.1% year over year and surpassing the Zacks Consensus Estimate of $1.32 billion. Earnings per share came in at $0.72, exceeding the consensus estimate of $0.65 and up from $0.64 a year ago. Within the Performance Coatings segment, Refinish sales reached $545 million, Industrial sales were $327 million, and total Performance Coatings sales hit $872 million, all above analyst projections. Mobility Coatings sales totaled $474 million, with Light Vehicle sales of $360 million slightly missing estimates and Commercial Vehicle sales of $114 million beating them. Adjusted EBIT for Performance Coatings was $218 million, well above the $197.4 million estimate, while Mobility Coatings adjusted EBIT of $87 million fell short of the $90.02 million consensus.

Axalta Coating Systems reported record adjusted EBITDA of $305 million and a multi-year high margin of 22.7% for the second quarter of 2026, driven by cost discipline and favorable mix. The Refinish segment grew 6% with 1,900 net new body shops added in the first half, while Mobility achieved record quarterly net sales of $474 million. The company maintained its full-year 2026 guidance and expects third-quarter adjusted EBITDA between $295 million and $305 million. A shareholder vote on the pending merger of equals with AkzoNobel is set for August 5, 2026, with closing targeted for late 2026 or early 2027, and management projects approximately $600 million in annual run-rate cost synergies from the deal.

AkzoNobel and Axalta have announced enhancements to the proposed governance arrangements for their combined company following their pending merger of equals. The changes include annual re-election of all directors after an initial three-year period, instead of the previously contemplated five-year period, and a two-thirds approval threshold for non-executive directors during the initial three years, down from 75%, for matters such as director appointments and dismissals, CEO and CFO appointments and removals, designation of chair and vice chair titles, and amendments to the remuneration policy. The companies stated that these refinements resulted from extensive engagement with shareholders and other stakeholders. The governance enhancements do not require changes to the proposed articles of association, and the extraordinary general meeting and special general meeting planned for August 5, 2026 will proceed as scheduled with existing agenda items unaffected.

Akzo Nobel reported second-quarter profit attributable to shareholders rose to 139 million euros from 124 million euros a year earlier, with earnings per share of 0.81 euros compared to 0.72 euros. Adjusted EBITDA increased to 398 million euros from 393 million euros, while revenue slipped to 2.59 billion euros from 2.63 billion euros. The company said it remains on track to achieve its full-year targets and expects to deliver 100 million euros of adjusted EBITDA improvement in constant currencies. CEO Greg Poux-Guillaume also noted that the merger with Axalta is progressing as planned, with a shareholder vote on August 5 and an expected closing at the end of 2026 or early 2027.