AXTA Filings — Axalta Coating Systems Ltd. - FilingSpy
AXTA
Axalta Coating Systems Ltd.
A maker of liquid and powder coatings for cars and industry, Axalta supplies paints and finishes to auto body repair shops and vehicle manufacturers around the world under brands like Cromax, Standox, Spies Hecker, and Alesta. Its roots reach back to a German carriage-coating firm founded in 1866 that later became part of DuPont; the business was carved out and rebranded "Axalta" in 2013, a name chosen partly so it would sit at the top of the alphabet.
Q2 2026 revenue rose 3.1% to $1.35B on currency and acquisitions while volumes fell and merger costs rose
Merger costs and falling volumes weighed on Q2 2026 profit even as rose. Revenue rose 3.1% to $1,346M on currency and acquisitions while fell 1.1 points to 33.2% and fell 17.0% to $146M, driven by $31M in AkzoNobel merger costs and a 0.8% volume decline. Axalta is operating through the merger process with earnings down and debt still being repaid.
Key takeaways
Other operating charges rose $30M to $42M in Q2, primarily from $31M in higher M&A costs tied to the proposed AkaltaNobel merger, a one-off item.
Total grew 3.1% to $1,346M, driven by a 2.6% currency and 0.9% from Recent Acquisitions, partly offset by a 0.8% volume decline.
fell 1.1 points to 33.2% from 34.3% a year earlier as lower selling prices, unfavorable mix, and higher freight costs partly offset lower variable input costs.
Section summaries
Management's Discussion and Analysis
Q2 2026 net sales rose 3.1% to $1.35B on currency and acquisitions, but volumes fell and M&A costs surged.
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Total grew 3.1% in Q2 2026 to $1,346M, driven by a 2.6% currency and 0.9% from Recent Acquisitions, partially offset by a 0.8% volume decline.
fell 17.0% to $146M and fell 6.7% to $0.42 versus Q2 2025, with the rising to 33.3% from 23.1% on a $27M charge for unrecognized tax benefits and non-deductible M&A costs.
Q2 sales rose 4.3% to $872M on currency, price/mix, and acquisitions, and its improved to 25.1% from 23.8% on lower input costs and savings; margin fell to 18.4% from 19.8% on unfavorable price/mix and lower light vehicle volumes.
was $220M for H1 2026, up from $168M a year ago, and the company prepaid $125M of its during the half.
What changed
Q2 2026 came in at 33.2%, down 1.1 points from the 34.3% Q1 2026 level flagged to watch as deflation moderates and freight costs persist — the decline continued as warned.
volumes were not separately reported for Q2 2026 after the 7.9% Q1 drop flagged to watch; Q2 sales rose 4.3% on currency, price/mix, and acquisitions rather than volume recovery.
Share repurchases were not reported for Q2 2026 against the $435M remaining authorization flagged after Q1; the company instead prepaid $125M of in H1.
The AkzoNobel all-stock merger progressed as the flagged item to watch, with Q2 M&A costs of $31M confirming active deal work toward the late-2026 to early-2027 expected close.
fell 8.0% to $3,127M from a year earlier, continuing the prepayment trend flagged in the FY2025 10-K.
What to watch
Q3 2026 against the 33.2% Q2 level as raw material deflation moderates and freight costs persist.
Progress of the AkzoNobel merger toward close and any trigger of the €150M termination fee.
volumes in Q3 after the Q1 7.9% drop to see if North American demand stabilizes.
Any resumption of share repurchases against the $435M remaining authorization or further 2029 term loan prepayments beyond the $125M H1 total.
Q2 sales rose 4.3% to $872M on favorable currency, price/mix, and acquisitions, while edged up 1.0% to $474M solely on currency benefits.
in improved to 25.1% from 23.8% on lower input costs and savings, but margin fell to 18.4% from 19.8% on unfavorable price/mix and lower light vehicle volumes.
Other operating charges jumped $30M to $42M in Q2, primarily from $31M in higher M&A costs tied to the proposed AkzoNobel merger.
was $220M for H1 2026, up from $168M a year ago, while the company prepaid $125M of its .
The spiked to 33.3% in Q2 from 23.1%, largely due to a $27M charge for and non-deductible M&A costs.
Quantitative and Qualitative Disclosures About Market Risk
There have been no material changes in the market risks previously disclosed in Part II, Item 7A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
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There have been no material changes in the market risks previously disclosed in Part II, Item 7A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
We are from time to time party to legal proceedings that arise in the ordinary course of business. We are not involved in any litigation other than that which has arisen in the ordinary course of business. We do not expect that any currently pending lawsuits will have a material…
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We are from time to time party to legal proceedings that arise in the ordinary course of business. We are not involved in any litigation other than that which has arisen in the ordinary course of business. We do not expect that any currently pending lawsuits will have a material adverse effect on us as discussed in Note 5 to the unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.
SEC regulations require disclosure of certain environmental matters when a governmental authority is a party to the proceedings and such proceedings involve potential monetary sanctions that the Company reasonably believes will exceed a specified threshold. Consistent with SEC rules, we use a threshold of $1 million for such proceedings. At this time, the Company is not aware of any matters that exceed this threshold and that meet the other conditions for disclosure pursuant to this requirement.
There have been no material changes in our risk factors from those previously disclosed in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025.
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There have been no material changes in our risk factors from those previously disclosed in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025.