Axalta Coating Systems Ltd. reported its financial results for the third quarter ended September 30, 2026, showing a 2% increase in net sales to $1.3 billion. The company achieved record quarterly net sales in its Mobility Coatings segment, which posted $493 million in sales, a 7% increase year over year. This growth was driven by a 2% increase in Light Vehicle sales and a 24% rise in Commercial Vehicle sales, the latter due to higher Class 8 production in North America.
Consolidated results included net income of $95 million, down from $110 million in the prior year, resulting in a net income margin of 7.2%. Adjusted EBITDA was $282 million, with a margin of 21.5%. Diluted earnings per share (EPS) were $0.44, while Adjusted Diluted EPS was $0.63. The company generated $135 million in cash from operating activities and $92 million in free cash flow, which was up 3% year over year.
Segment performance varied by region. Performance Coatings net sales were $818 million, a slight decrease year over year, primarily due to lower Refinish volumes in Europe. Outside of Europe, sales were stable in North America and grew in Latin America and Asia Pacific. Performance Coatings Adjusted EBITDA was $188 million, with a margin of 23.0%. The company noted that its total net leverage ratio is 2.1x, the lowest in its history.
Axalta provided guidance for the fourth quarter and full year 2026. For the fourth quarter, the company expects Adjusted EBITDA between $254 million and $264 million and Adjusted Diluted EPS of approximately $0.55. For the full year, Axalta projects Adjusted EBITDA of $1.100 billion to $1.110 billion and Adjusted Diluted EPS of $2.45. The company also reiterated its confidence in the proposed combination with AkzoNobel.
