Axalta Releases Fourth Quarter and Full Year 2024 Results
Axalta Coating Systems (NYSE:AXTA) reported strong financial results for Q4 and full year 2024. The company achieved record Q4 net sales of $1.3 billion and record full-year net sales of $5.3 billion.
Q4 highlights include: net income up 85% to $137 million, net income margins of 10.5% (up 480 basis points YoY), and record Adjusted EBITDA of $275 million. Diluted EPS increased 91% to $0.63.
Full-year 2024 performance showed record net income of $391 million (up 45% YoY), record Adjusted EBITDA of $1,116 million, and net income margins of 7.4%. The company's net debt to LTM Adjusted EBITDA ratio improved to 2.5x from 2.9x year-over-year.
For 2025, Axalta projects net sales of $5,350-$5,400 million and Adjusted EBITDA of $1,150-$1,175 million.
Axalta Coating Systems (NYSE:AXTA) ha riportato risultati finanziari solidi per il quarto trimestre e l'intero anno 2024. L'azienda ha ottenuto vendite nette record nel Q4 pari a 1,3 miliardi di dollari e vendite nette annuali record di 5,3 miliardi di dollari.
I punti salienti del Q4 includono: utile netto in crescita dell'85% a 137 milioni di dollari, margini di utile netto del 10,5% (in aumento di 480 punti base rispetto all'anno precedente) e un EBITDA rettificato record di 275 milioni di dollari. L'EPS diluito è aumentato del 91% a 0,63 dollari.
Le performance dell'anno intero 2024 hanno mostrato un utile netto record di 391 milioni di dollari (in aumento del 45% rispetto all'anno precedente), un EBITDA rettificato record di 1.116 milioni di dollari, e margini di utile netto del 7,4%. Il rapporto debito netto dell'azienda rispetto all'EBITDA rettificato LTM è migliorato a 2,5x rispetto a 2,9x anno su anno.
Per il 2025, Axalta prevede vendite nette di 5.350-5.400 milioni di dollari e un EBITDA rettificato di 1.150-1.175 milioni di dollari.
Axalta Coating Systems (NYSE:AXTA) informó sobre resultados financieros sólidos para el cuarto trimestre y el año completo 2024. La empresa alcanzó ventas netas récord en el Q4 de 1.3 mil millones de dólares y ventas netas anuales récord de 5.3 mil millones de dólares.
Los aspectos destacados del Q4 incluyen: ingreso neto aumentado un 85% a 137 millones de dólares, márgenes de ingreso neto del 10.5% (un aumento de 480 puntos base interanuales), y un EBITDA Ajustado récord de 275 millones de dólares. El EPS diluido aumentó un 91% a 0.63 dólares.
El rendimiento del año completo 2024 mostró un ingreso neto récord de 391 millones de dólares (un aumento del 45% interanual), un EBITDA Ajustado récord de 1,116 millones de dólares, y márgenes de ingreso neto del 7.4%. El ratio de deuda neta de la empresa respecto al EBITDA Ajustado LTM mejoró a 2.5x desde 2.9x interanualmente.
Para 2025, Axalta proyecta ventas netas de 5,350-5,400 millones de dólares y un EBITDA Ajustado de 1,150-1,175 millones de dólares.
Axalta Coating Systems (NYSE:AXTA)는 2024년 4분기 및 전체 연도에 대한 강력한 재무 성과를 보고했습니다. 회사는 4분기 순매출 13억 달러의 기록을 달성했으며 연간 순매출 53억 달러의 기록을 세웠습니다.
4분기 주요 사항에는: 순이익이 85% 상승하여 1억 3700만 달러에 도달하고, 순이익 마진이 10.5% (전년 대비 480 베이시스 포인트 상승), 조정된 EBITDA가 2억 7500만 달러로 기록적이었습니다. 희석 EPS는 91% 증가하여 0.63 달러에 가닿았습니다.
2024년 전체 연도의 성과는 3억 9100만 달러의 기록적인 순이익(전년 대비 45% 증가), 11억 1600만 달러의 조정된 EBITDA의 기록 및 7.4%의 순이익 마진을 보여주었습니다. 회사의 순부채 대비 LTM 조정 EBITDA 비율은 전년 대비 2.9배에서 2.5배로 개선되었습니다.
2025년에는 Axalta가 순매출 5,350-5,400백만 달러와 조정된 EBITDA 1,150-1,175백만 달러를 예상하고 있습니다.
Axalta Coating Systems (NYSE:AXTA) a rapporté de solides résultats financiers pour le quatrième trimestre et l'année complète 2024. L'entreprise a réalisé des ventes nettes record au Q4 de 1,3 milliard de dollars et des ventes nettes annuelles record de 5,3 milliards de dollars.
Les points forts du Q4 incluent : un bénéfice net en hausse de 85 % à 137 millions de dollars, des marges bénéficiaires nettes de 10,5 % (en hausse de 480 points de base par rapport à l'année précédente) et un EBITDA ajusté record de 275 millions de dollars. Le BPA dilué a augmenté de 91 % pour atteindre 0,63 dollar.
Les performances de l'année complète 2024 ont montré un bénéfice net record de 391 millions de dollars (en hausse de 45 % par rapport à l'année précédente), un EBITDA ajusté record de 1,116 milliard de dollars et des marges bénéficiaires nettes de 7,4 %. Le ratio de la dette nette de l'entreprise par rapport à l'EBITDA ajusté LTM s'est amélioré à 2,5x contre 2,9x d'une année sur l'autre.
Pour 2025, Axalta prévoit des ventes nettes de 5 350 à 5 400 millions de dollars et un EBITDA ajusté de 1 150 à 1 175 millions de dollars.
Axalta Coating Systems (NYSE:AXTA) hat starke Finanzzahlen für das 4. Quartal und das gesamte Jahr 2024 gemeldet. Das Unternehmen erzielte rekordverdächtige Nettoumsätze im Q4 von 1,3 Milliarden Dollar und rekordverdächtige Nettoumsätze für das gesamte Jahr von 5,3 Milliarden Dollar.
Die Highlights des Q4 umfassen: Nettogewinn um 85% auf 137 Millionen Dollar gestiegen, Nettogewinnmargen von 10,5% (ein Anstieg um 480 Basispunkte im Vergleich zum Vorjahr) und ein rekordverdächtiges bereinigtes EBITDA von 275 Millionen Dollar. Der verwässerte EPS stieg um 91% auf 0,63 Dollar.
Die Gesamtjahresleistung 2024 zeigte einen rekordverdächtigen Nettogewinn von 391 Millionen Dollar (ein Anstieg von 45% im Vergleich zum Vorjahr), ein rekordverdächtiges bereinigtes EBITDA von 1.116 Millionen Dollar und Nettogewinnmargen von 7,4%. Das Verhältnis von Nettoverschuldung zu LTM bereinigtem EBITDA verbesserte sich von 2,9x auf 2,5x im Jahresvergleich.
Für 2025 prognostiziert Axalta Nettoumsätze von 5.350-5.400 Millionen Dollar und ein bereinigtes EBITDA von 1.150-1.175 Millionen Dollar.
- Record Q4 net sales of $1.3 billion
- Q4 net income increased 85% YoY to $137 million
- Full-year net income up 45% to $391 million
- Record full-year Adjusted EBITDA of $1,116 million
- Net debt to LTM Adjusted EBITDA ratio improved to 2.5x from 2.9x
- Q4 Adjusted EBITDA margin expanded by 170 basis points to 21.0%
- Lower volumes in Europe for Refinish segment
- Commercial Vehicle net sales decreased 10% YoY
- Industrial net sales decreased 5% YoY
- Year-over-year decrease in free cash flow due to higher working capital
Insights
Axalta's Q4 and FY2024 results showcase exceptional financial execution across key metrics. The standout net income margin expansion of 480 basis points to
The Mobility Coatings segment's transformation is particularly noteworthy, with Adjusted EBITDA margins improving significantly to
Looking ahead, the 2025 guidance implies continued margin strength but at a more moderate pace. The projected full-year revenue of
The successful integration of CoverFlexx and debt reduction demonstrates disciplined capital allocation, though increased working capital requirements warrant monitoring. The 2.5x leverage ratio positions the company well for potential strategic opportunities while maintaining financial flexibility.
PHILADELPHIA, Feb. 04, 2025 (GLOBE NEWSWIRE) -- Axalta Coating Systems Ltd. (NYSE:AXTA) (“Axalta”), a leading global coatings company, announced its financial results for the fourth quarter and full year ended December 31, 2024.
Fourth Quarter 2024 Highlights
- Record fourth quarter net sales of
$1.3 billion - Net income increased
85% year over year to$137 million , with net income margins of10.5% , a year over year improvement of 480 basis points - Record fourth quarter Adjusted EBITDA of
$275 million - Adjusted EBITDA margin improved 170 basis points year over year
- Diluted EPS increased
91% to$0.63 and Adjusted Diluted EPS increased30% to$0.60
Fiscal Year 2024 Highlights
- Record full year net sales of
$5.3 billion - Record net income of
$391 million , a45% increase year over year, with net income margins of7.4% , a year over year improvement of 220 basis points - Record full year Adjusted EBITDA of
$1,116 million , with Adjusted EBITDA margins of21.2% - Diluted EPS increased
47% to$1.78 and Adjusted Diluted EPS increased40% to$2.35
Fourth Quarter 2024 Consolidated Financial Results
Fourth quarter 2024 net sales increased
Net income increased
Fourth quarter 2024 cash provided by operating activities was
The company's net debt to trailing twelve-month ("LTM") Adjusted EBITDA ratio (total net leverage ratio) was 2.5x at quarter-end versus 2.9x as of December 31, 2023. In the quarter, the company prioritized gross debt reduction, paying down the full
Discussion of Segment Results
Performance Coatings fourth quarter 2024 net sales were
The Performance Coatings segment generated Adjusted EBITDA of
Mobility Coatings fourth quarter 2024 net sales were
Mobility Coatings generated Adjusted EBITDA of
Fiscal Year 2024 Consolidated Financial Results
For the full year 2024, net sales increased
Net income improved to
Fiscal year 2024 cash provided by operating activities was
“Axalta's 2024 financial results were exceptional. We delivered record net sales and Adjusted EBITDA for the fourth quarter and full year in a challenging macro environment,” said Chris Villavarayan, Axalta’s CEO and President. “Consistent outperformance in Refinish and Light Vehicle and excellent execution across the company, resulted in an Adjusted EBITDA margin of over
Non-GAAP Reporting Changes
Beginning with the results for the fourth quarter and full year 2024 reported in this release, we have made changes to our presentation of the non-GAAP financial measures of Adjusted EBIT and Adjusted Net Income (which is also leveraged in the calculation of Adjusted Diluted EPS). More detail on these changes can be found in the Current Report on Form 8-K we furnished to the U.S. Securities and Exchange Commission ("SEC") on January 21, 2025, which is available on the investor relations portion of our website at https://ir.axalta.com.
Financial Guidance
First Quarter and Full Year 2025 Outlook:
| (in millions, except %’s and per share data) | Projection | ||
| Item | Q1 2025 | FY 2025 | |
| Net Sales YOY | Flat | ||
| Adjusted EBITDA | ~ | ||
| Adjusted Diluted EPS | ~ | ||
| Free Cash Flow | ~ | ||
| Depreciation and Amortization | ~ | ||
| Tax Rate, As Adjusted | ~ | ||
| Diluted Shares Outstanding | ~219 | ||
| Interest Expense | ~ | ||
| Capex | |||
Axalta does not provide a reconciliation for non-GAAP estimates for Adjusted EBITDA, Adjusted Diluted EPS, Free Cash Flow, and tax rate, as adjusted, on a forward-looking basis because the information necessary to calculate a meaningful or accurate estimation of reconciling items is not available without unreasonable effort. See “Non-GAAP Financial Measures” for more information.
Conference Call Information
As previously announced, Axalta will hold a conference call to discuss its fourth quarter and full year 2024 financial results on February 4th, 2025 at 8:00 a.m. ET. The dial-in phone number for the conference call is +1-203-518-9708. A live webcast of the conference call will also be available online at www.axalta.com/investorcall. For those unable to participate, a replay will be available through February 11, 2025, with a dial-in number of +1-412-317-6671 and pin: 11157765.
Cautionary Statement Concerning Forward-Looking Statements
This release may contain certain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 regarding Axalta and its subsidiaries including, but not limited to, statements regarding our previously announced three-year 2024-2026 strategy (the “2026 A Plan”), and our outlook and/or guidance, which includes net sales, net sales growth, Adjusted EBITDA, Adjusted Diluted EPS, Free Cash Flow, depreciation and amortization, tax rate, as adjusted, diluted shares outstanding, interest expense and capital expenditures. Axalta has identified some of these forward-looking statements with words such as “commitments,” “guidance,” “outlook,” and “projection,” and the negative of these words or other comparable or similar terminology. All of these statements are based on management’s expectations as well as estimates and assumptions prepared by management that, although they believe to be reasonable, are inherently uncertain. These statements involve risks and uncertainties, including, but not limited to, economic, competitive, governmental and technological factors outside of Axalta’s control, as well as risks related to the execution of, and assumptions underlying, the 2024 Transformation Initiative and the 2026 A Plan, that may cause its business, industry, strategy, financing activities or actual results to differ materially. More information on potential factors that could affect Axalta’s financial results is available in “Forward-Looking Statements,” “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” within Axalta’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, and in other documents that we have filed with, or furnished to, the U.S. Securities and Exchange Commission. Axalta undertakes no obligation to update or revise any of the forward-looking statements contained herein, whether as a result of new information, future events or otherwise. Final results for the full year, which will be reported in our Annual Report on Form 10-K for the year ended December 31, 2024, may vary from the information in this release. In particular, until our financial statements are issued in our Annual Report on Form 10-K, we may be required to recognize certain subsequent events (such as in connection with contingencies or the realization of assets) which could affect our final results.
Non-GAAP Financial Measures
This release includes financial information that is not presented in accordance with generally accepted accounting principles in the United States (“GAAP”), including Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Diluted EPS, adjusted net income, Free Cash Flow, total net leverage ratio, tax rate, as adjusted, and Adjusted EBIT. Management uses Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Diluted EPS, adjusted net income, tax rate, as adjusted, and Adjusted EBIT in the analysis of our financial and operating performance because they assist in the evaluation of underlying trends in our business. Management uses Free Cash Flow and total net leverage ratio in the analysis of (1) our liquidity, (2) our ability to incur and service our debt and (3) strategic capital allocation decisions. Adjusted EBITDA, Adjusted Diluted EPS, adjusted net income, and Adjusted EBIT consist of EBITDA, Diluted EPS, net income attributable to common shareholders, and EBIT, respectively, adjusted for (i) certain non-cash items included within net income, (ii) certain items Axalta does not believe are indicative of ongoing operating performance or (iii) certain nonrecurring, unusual or infrequent items that have not otherwise occurred within the last two years or we believe are not reasonably likely to recur within the next two years. Free cash flow consists of cash provided by (used for) operating activities less purchase of property, plant and equipment plus interest proceeds on swaps designated as net investment hedges. Total net leverage ratio consists of net debt divided by Adjusted EBITDA, with net debt defined as total debt less cash and cash equivalents. We believe that making the foregoing adjustments provides investors meaningful information to understand our operating results and ability to analyze financial and business trends on a period-to-period basis. The non-GAAP financial measures used by Axalta may differ from similarly titled measures reported by other companies. Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Diluted EPS, adjusted net income, Free Cash Flow, total net leverage ratio, tax rate, as adjusted, and Adjusted EBIT should not be considered as alternatives to net sales, net income (loss), income (loss) from operations or any other financial measures derived in accordance with GAAP. These non-GAAP financial measures have important limitations as analytical tools and should be considered in conjunction with, and not as substitutes for, our results as reported under GAAP. This release includes a reconciliation of certain non-GAAP financial measures with the most directly comparable financial measures calculated in accordance with GAAP. Axalta does not provide a reconciliation for Adjusted EBITDA, Adjusted Diluted EPS, tax rate, as adjusted, or Free Cash Flow on a forward-looking basis because the information necessary to calculate a meaningful or accurate estimation of reconciling items is not available without unreasonable effort. For example, such reconciling items include the impact of foreign currency exchange gains or losses, gains or losses that are unusual or nonrecurring in nature, as well as discrete taxable events. These items are uncertain, depend on various factors and may have a substantial and unpredictable impact on our GAAP results.
Segment Financial Measures
The primary measure of segment operating performance is Adjusted EBITDA, which is a key metric that is used by management to evaluate business performance in comparison to budgets, forecasts and prior year financial results and that management believes reflects Axalta’s core operating performance. As we do not measure segment operating performance based on net income, a reconciliation of this non-GAAP financial measure with the most directly comparable financial measure calculated in accordance with GAAP is not available. Beginning with the fourth quarter of 2023, we replaced Adjusted EBIT with Adjusted EBITDA as the primary measure of segment operating performance. As previously disclosed, we have published segment Adjusted EBIT through 2024 to allow for historical trend analyses.
Defined Terms
All capitalized terms contained within this release that are not otherwise defined herein have been previously defined in our filings with the SEC.
Rounding
Certain amounts may not foot or crossfoot due to rounding. Additionally, certain percentages may not recalculate due to rounding.
About Axalta Coating Systems
Axalta is a global leader in the coatings industry, providing customers with innovative, colorful, beautiful and sustainable coatings solutions. From light vehicles, commercial vehicles and refinish applications to electric motors, building facades and other industrial applications, our coatings are designed to prevent corrosion, increase productivity and enhance durability. With more than 150 years of experience in the coatings industry, the global team at Axalta continues to find ways to serve our more than 100,000 customers in over 140 countries better every day with the finest coatings, application systems and technology. For more information visit axalta.com and follow us @axalta on X.
| Financial Statement Tables | ||||||||||||
| AXALTA COATING SYSTEMS LTD. | ||||||||||||
| Condensed Consolidated Statements of Operations (Unaudited) | ||||||||||||
| (In millions, except per share data) | ||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Net sales | $ | 1,311 | $ | 1,297 | $ | 5,276 | $ | 5,184 | ||||
| Cost of goods sold | 864 | 874 | 3,478 | 3,566 | ||||||||
| Selling, general and administrative expenses | 216 | 215 | 847 | 840 | ||||||||
| Other operating charges | 1 | 6 | 79 | 28 | ||||||||
| Research and development expenses | 19 | 18 | 74 | 74 | ||||||||
| Amortization of acquired intangibles | 24 | 22 | 92 | 88 | ||||||||
| Income from operations | 187 | 162 | 706 | 588 | ||||||||
| Interest expense, net | 47 | 55 | 205 | 213 | ||||||||
| Other expense, net | 1 | 5 | 5 | 20 | ||||||||
| Income before income taxes | 139 | 102 | 496 | 355 | ||||||||
| Provision for income taxes | 2 | 28 | 105 | 86 | ||||||||
| Net income | 137 | 74 | 391 | 269 | ||||||||
| Less: Net income attributable to noncontrolling interests | — | 1 | — | 2 | ||||||||
| Net income attributable to common shareholders | $ | 137 | $ | 73 | $ | 391 | $ | 267 | ||||
| Basic net income per share | $ | 0.63 | $ | 0.33 | $ | 1.78 | $ | 1.21 | ||||
| Diluted net income per share | $ | 0.63 | $ | 0.33 | $ | 1.78 | $ | 1.21 | ||||
| Basic weighted average shares outstanding | 218.1 | 220.1 | 219.3 | 221.0 | ||||||||
| Diluted weighted average shares outstanding | 219.3 | 220.9 | 220.4 | 221.9 | ||||||||
| AXALTA COATING SYSTEMS LTD. | ||||||||
| Condensed Consolidated Balance Sheets (Unaudited) | ||||||||
| (In millions, except per share data) | ||||||||
| December 31, 2024 | December 31, 2023 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 593 | $ | 700 | ||||
| Restricted cash | 3 | 3 | ||||||
| Accounts and notes receivable, net | 1,248 | 1,260 | ||||||
| Inventories | 734 | 741 | ||||||
| Prepaid expenses and other current assets | 145 | 117 | ||||||
| Total current assets | 2,723 | 2,821 | ||||||
| Property, plant and equipment, net | 1,181 | 1,204 | ||||||
| Goodwill | 1,640 | 1,591 | ||||||
| Identifiable intangibles, net | 1,149 | 1,130 | ||||||
| Other assets | 556 | 526 | ||||||
| Total assets | $ | 7,249 | $ | 7,272 | ||||
| Liabilities, Shareholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 659 | $ | 725 | ||||
| Current portion of borrowings | 20 | 26 | ||||||
| Other accrued liabilities | 675 | 677 | ||||||
| Total current liabilities | 1,354 | 1,428 | ||||||
| Long-term borrowings | 3,401 | 3,478 | ||||||
| Accrued pensions | 220 | 252 | ||||||
| Deferred income taxes | 151 | 162 | ||||||
| Other liabilities | 167 | 179 | ||||||
| Total liabilities | 5,293 | 5,499 | ||||||
| Shareholders' equity | ||||||||
| Common shares, | 255 | 254 | ||||||
| Capital in excess of par | 1,599 | 1,568 | ||||||
| Retained earnings | 1,677 | 1,286 | ||||||
| Treasury shares, at cost, 36.4 and 33.6 shares at December 31, 2024 and 2023, respectively | (1,037 | ) | (937 | ) | ||||
| Accumulated other comprehensive loss | (582 | ) | (444 | ) | ||||
| Total Axalta shareholders' equity | 1,912 | 1,727 | ||||||
| Noncontrolling interests | 44 | 46 | ||||||
| Total shareholders' equity | 1,956 | 1,773 | ||||||
| Total liabilities and shareholders' equity | $ | 7,249 | $ | 7,272 | ||||
| AXALTA COATING SYSTEMS LTD. | ||||||||
| Condensed Consolidated Statements of Cash Flows (Unaudited) | ||||||||
| (In millions) | ||||||||
| Year Ended December 31, | ||||||||
| 2024 | 2023 | |||||||
| Operating activities: | ||||||||
| Net income | $ | 391 | $ | 269 | ||||
| Adjustment to reconcile net income to cash provided by operating activities: | ||||||||
| Depreciation and amortization | 280 | 276 | ||||||
| Amortization of deferred financing costs and original issue discount | 7 | 9 | ||||||
| Debt extinguishment and refinancing-related costs | 5 | 10 | ||||||
| Deferred income taxes | (17 | ) | (8 | ) | ||||
| Realized and unrealized foreign exchange losses, net | 11 | 21 | ||||||
| Stock-based compensation | 28 | 26 | ||||||
| Impairment charges | — | 15 | ||||||
| Interest income on swaps designated as net investment hedges | (15 | ) | (10 | ) | ||||
| Other non-cash, net | 9 | 22 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Trade accounts and notes receivable | (7 | ) | (119 | ) | ||||
| Inventories | 12 | 103 | ||||||
| Prepaid expenses and other assets | (130 | ) | (71 | ) | ||||
| Accounts payable | (49 | ) | 9 | |||||
| Other accrued liabilities | 36 | 29 | ||||||
| Other liabilities | 15 | (6 | ) | |||||
| Cash provided by operating activities | 576 | 575 | ||||||
| Investing activities: | ||||||||
| Acquisitions, net of cash acquired | (301 | ) | (106 | ) | ||||
| Purchase of property, plant and equipment | (140 | ) | (138 | ) | ||||
| Interest proceeds on swaps designated as net investment hedges | 15 | 10 | ||||||
| Settlement proceeds on swaps designated as net investment hedges | — | 29 | ||||||
| Payments for loans to customers | (22 | ) | (3 | ) | ||||
| Other investing activities, net | 8 | 2 | ||||||
| Cash used for investing activities | (440 | ) | (206 | ) | ||||
| Financing activities: | ||||||||
| Proceeds from short-term borrowings | — | 9 | ||||||
| Proceeds from long-term borrowings | 333 | 697 | ||||||
| Payments on short-term borrowings | (5 | ) | (50 | ) | ||||
| Payments on long-term borrowings | (420 | ) | (904 | ) | ||||
| Financing-related costs | (6 | ) | (17 | ) | ||||
| Net cash flows associated with stock-based awards | 4 | 8 | ||||||
| Purchases of common stock | (100 | ) | (50 | ) | ||||
| Deferred acquisition-related consideration | (6 | ) | (8 | ) | ||||
| Other financing activities, net | (1 | ) | — | |||||
| Cash used for financing activities | (201 | ) | (315 | ) | ||||
| Increase (decrease) in cash and cash equivalents | (65 | ) | 54 | |||||
| Effect of exchange rate changes on cash | (42 | ) | (6 | ) | ||||
| Cash at beginning of period | 703 | 655 | ||||||
| Cash at end of period | $ | 596 | $ | 703 | ||||
| Cash at end of period reconciliation: | ||||||||
| Cash and cash equivalents | $ | 593 | $ | 700 | ||||
| Restricted cash | 3 | 3 | ||||||
| Cash at end of period | $ | 596 | $ | 703 | ||||
The following table reconciles net income to EBITDA and Adjusted EBITDA for the periods presented (in millions):
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net income | $ | 137 | $ | 74 | $ | 391 | $ | 269 | ||||||||
| Interest expense, net | 47 | 55 | 205 | 213 | ||||||||||||
| Provision for income taxes | 2 | 28 | 105 | 86 | ||||||||||||
| Depreciation and amortization | 73 | 69 | 280 | 276 | ||||||||||||
| EBITDA | 259 | 226 | 981 | 844 | ||||||||||||
| Debt extinguishment and refinancing-related costs (a) | 2 | 3 | 5 | 10 | ||||||||||||
| Termination benefits and other employee-related costs (b) | — | 4 | 67 | 18 | ||||||||||||
| Acquisition and divestiture-related costs (c) | 3 | 2 | 11 | 3 | ||||||||||||
| Site closure costs (d) | — | 3 | 1 | 7 | ||||||||||||
| Impairment charges (e) | — | — | — | 15 | ||||||||||||
| Foreign exchange remeasurement losses (f) | 3 | 4 | 11 | 23 | ||||||||||||
| Long-term employee benefit plan adjustments (g) | 1 | 2 | 9 | 9 | ||||||||||||
| Stock-based compensation (h) | 7 | 7 | 28 | 26 | ||||||||||||
| Environmental charge (i) | — | — | 4 | — | ||||||||||||
| Other adjustments (j) | — | — | (1 | ) | (4 | ) | ||||||||||
| Adjusted EBITDA | $ | 275 | $ | 251 | $ | 1,116 | $ | 951 | ||||||||
| Net sales | $ | 1,311 | $ | 1,297 | $ | 5,276 | $ | 5,184 | ||||||||
| Net income margin | 10.5 | % | 5.7 | % | 7.4 | % | 5.2 | % | ||||||||
| Adjusted EBITDA margin | 21.0 | % | 19.3 | % | 21.2 | % | 18.4 | % | ||||||||
| Segment Adjusted EBITDA: | ||||||||||||||||
| Performance Coatings | $ | 198 | $ | 192 | $ | 838 | $ | 742 | ||||||||
| Mobility Coatings | 77 | 59 | 278 | 209 | ||||||||||||
| Total | $ | 275 | $ | 251 | $ | 1,116 | $ | 951 | ||||||||
| (a) | Represents expenses and associated changes to estimates related to the prepayment, restructuring, and refinancing of our indebtedness, which are not considered indicative of our ongoing operating performance. |
| (b) | Represents expenses and associated changes to estimates related to employee termination benefits, consulting, legal and other employee-related costs associated with restructuring programs and other employee-related costs. These amounts are not considered indicative of our ongoing operating performance. |
| (c) | Represents acquisition and divestiture-related expenses and integration activities associated with our business combinations, all of which are not considered indicative of our ongoing operating performance. |
| (d) | Represents costs related to the closure of certain manufacturing sites, which we do not consider indicative of our ongoing operating performance. |
| (e) | Represents impairment charges, which are not considered indicative of our ongoing operating performance. The losses recorded during the year ended December 31, 2023 were primarily due to the decision to demolish assets at a previously closed manufacturing site during the three months ended June 30, 2023 and the then anticipated exit of a non-core business category in the Mobility Coatings segment during the three months ended March 31, 2023. |
| (f) | Represents foreign exchange losses resulting from the remeasurement of assets and liabilities denominated in foreign currencies, net of the impacts of our foreign currency instruments used to hedge our balance sheet exposures. |
| (g) | Represents the non-cash, non-service cost components of long-term employee benefit costs. |
| (h) | Represents non-cash impacts associated with stock-based compensation. |
| (i) | Represents costs related to certain environmental remediation activities, which are not considered indicative of our ongoing operating performance. |
| (j) | Represents costs for certain non-operational or non-cash (gains) losses, unrelated to our core business and which we do not consider indicative of our ongoing operating performance. |
The following table reconciles net income to adjusted net income for the periods presented (in millions, except per share data):
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net income | $ | 137 | $ | 74 | $ | 391 | $ | 269 | |||||||
| Less: Net income attributable to noncontrolling interests | — | 1 | — | 2 | |||||||||||
| Net income attributable to common shareholders | 137 | 73 | 391 | 267 | |||||||||||
| Debt extinguishment and refinancing-related costs (a) | 2 | 3 | 5 | 10 | |||||||||||
| Termination benefits and other employee-related costs (b) | — | 4 | 67 | 18 | |||||||||||
| Acquisition and divestiture-related costs (c) | 3 | 2 | 11 | 3 | |||||||||||
| Impairment charges (d) | — | — | — | 15 | |||||||||||
| Accelerated depreciation and site closure costs (e) | 1 | 3 | 5 | 7 | |||||||||||
| Environmental charge (f) | — | — | 4 | — | |||||||||||
| Other adjustments (g) | (1 | ) | — | (2 | ) | (2 | ) | ||||||||
| Amortization of acquired intangibles (h) | 24 | 22 | 92 | 88 | |||||||||||
| Total adjustments | 29 | 34 | 182 | 139 | |||||||||||
| Income tax provision impacts (i) | 35 | 6 | 55 | 32 | |||||||||||
| Adjusted net income | $ | 131 | $ | 101 | $ | 518 | $ | 374 | |||||||
| Adjusted diluted net income per share | $ | 0.60 | $ | 0.46 | $ | 2.35 | $ | 1.68 | |||||||
| Diluted weighted average shares outstanding | 219.3 | 220.9 | 220.4 | 221.9 | |||||||||||
| (a) | Represents expenses and associated changes to estimates related to the prepayment, restructuring, and refinancing of our indebtedness, which are not considered indicative of our ongoing operating performance. |
| (b) | Represents expenses and associated changes to estimates related to employee termination benefits, consulting, legal and other employee-related costs associated with restructuring programs and other employee-related costs. These amounts are not considered indicative of our ongoing operating performance. |
| (c) | Represents acquisition and divestiture-related expenses and integration activities associated with our business combinations, all of which are not considered indicative of our ongoing operating performance. |
| (d) | Represents impairment charges, which are not considered indicative of our ongoing operating performance. The losses recorded during the year ended December 31, 2023 were primarily due to the decision to demolish assets at a previously closed manufacturing site during the three months ended June 30, 2023 and the then anticipated exit of a non-core business category in the Mobility Coatings segment during the three months ended March 31, 2023. |
| (e) | Represents incremental depreciation expense resulting from truncated useful lives of the assets impacted by our manufacturing footprint assessments and costs related to the closure of certain manufacturing sites, which we do not consider indicative of our ongoing operating performance. |
| (f) | Represents costs related to certain environmental remediation activities, which are not considered indicative of our ongoing operating performance. |
| (g) | Represents costs for certain non-operational or non-cash (gains) losses, unrelated to our core business and which we do not consider indicative of our ongoing operating performance. |
| (h) | Represents non-cash amortization expense for intangible assets acquired through business combinations or asset acquisitions. |
| (i) | The income tax impacts are determined using the applicable rates in the taxing jurisdictions in which expense or income occurred and includes both current and deferred income tax expense (benefit) based on the nature of the non-GAAP performance measure. Additionally, the income tax impact includes the removal of discrete income tax impacts within our effective tax rate which were benefits of |
The following table reconciles cash provided by (used for) operating activities to free cash flow for the periods presented (in millions):
| Three Months Ended March 31, | Three Months Ended June 30, | Three Months Ended September 30, | Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||||
| Cash provided by (used for) operating activities | $ | 34 | $ | (52 | ) | $ | 114 | $ | 131 | $ | 194 | $ | 210 | $ | 234 | $ | 286 | $ | 576 | $ | 575 | ||||||||||||||||||
| Purchase of property, plant and equipment | (22 | ) | (42 | ) | (23 | ) | (32 | ) | (33 | ) | (31 | ) | (62 | ) | (33 | ) | (140 | ) | (138 | ) | |||||||||||||||||||
| Interest proceeds on swaps designated as net investment hedges | 3 | 6 | 4 | — | 3 | 3 | 5 | 1 | 15 | 10 | |||||||||||||||||||||||||||||
| Free cash flow | $ | 15 | $ | (88 | ) | $ | 95 | $ | 99 | $ | 164 | $ | 182 | $ | 177 | $ | 254 | $ | 451 | $ | 447 | ||||||||||||||||||
The following table reconciles income from operations to adjusted EBIT and segment adjusted EBIT for the periods presented (in millions):
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Income from operations | $ | 187 | $ | 162 | $ | 706 | $ | 588 | |||||||
| Other expense, net | 1 | 5 | 5 | 20 | |||||||||||
| Total | 186 | 157 | 701 | 568 | |||||||||||
| Debt extinguishment and refinancing-related costs (a) | 2 | 3 | 5 | 10 | |||||||||||
| Termination benefits and other employee-related costs (b) | — | 4 | 67 | 18 | |||||||||||
| Acquisition and divestiture-related costs (c) | 3 | 2 | 11 | 4 | |||||||||||
| Impairment charges (d) | — | — | — | 15 | |||||||||||
| Accelerated depreciation and site closure costs (e) | 1 | 3 | 5 | 7 | |||||||||||
| Environmental charge (f) | — | — | 4 | — | |||||||||||
| Other adjustments (g) | (1 | ) | — | (2 | ) | (3 | ) | ||||||||
| Amortization of acquired intangibles (h) | 24 | 22 | 92 | 88 | |||||||||||
| Adjusted EBIT | $ | 215 | $ | 191 | $ | 883 | $ | 707 | |||||||
| Segment Adjusted EBIT (1): | |||||||||||||||
| Performance Coatings | $ | 134 | $ | 129 | $ | 590 | $ | 491 | |||||||
| Mobility Coatings | 57 | 40 | 201 | 128 | |||||||||||
| Total | 191 | 169 | 791 | 619 | |||||||||||
| Amortization of acquired intangibles (h) | 24 | 22 | 92 | 88 | |||||||||||
| Adjusted EBIT | $ | 215 | $ | 191 | $ | 883 | $ | 707 | |||||||
| (1) | During the three months ended December 31, 2023, Axalta transitioned to using Adjusted EBITDA as the primary measure to evaluate financial performance of the operating segments and allocate resources. We will continuing publishing segment Adjusted EBIT through 2024 to allow for historical trend analysis. |
| (a) | Represents expenses and associated changes to estimates related to the prepayment, restructuring, and refinancing of our indebtedness, which are not considered indicative of our ongoing operating performance. |
| (b) | Represents expenses and associated changes to estimates related to employee termination benefits, consulting, legal and other employee-related costs associated with restructuring programs and other employee-related costs. These amounts are not considered indicative of our ongoing operating performance. |
| (c) | Represents acquisition and divestiture-related expenses and integration activities associated with our business combinations, all of which are not considered indicative of our ongoing operating performance. |
| (d) | Represents impairment charges, which are not considered indicative of our ongoing operating performance. The losses recorded during the year ended December 31, 2023 were primarily due to the decision to demolish assets at a previously closed manufacturing site during the three months ended June 30, 2023 and the then anticipated exit of a non-core business category in the Mobility Coatings segment during the three months ended March 31, 2023. |
| (e) | Represents incremental depreciation expense resulting from truncated useful lives of the assets impacted by our manufacturing footprint assessments and costs related to the closure of certain manufacturing sites, which we do not consider indicative of our ongoing operating performance. |
| (f) | Represents costs related to certain environmental remediation activities, which are not considered indicative of our ongoing operating performance. |
| (g) | Represents costs for certain non-operational or non-cash (gains) losses, unrelated to our core business and which we do not consider indicative of our ongoing operating performance. |
| (h) | Represents non-cash amortization expense for intangible assets acquired through business combinations or asset acquisitions. |
Investor and Media Contact
Colleen Lubic
D +1 610-999-9407
Colleen.Lubic@axalta.com
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