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Axalta Coating Systems Ltd. — First Quarter 2026 Investor Presentation (company IR deck)
Axalta Coating Systems Ltd. (AXTA) · 21 slides · Filed Oct 29, 2026
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Slide 1 — Axalta Coating
1 April 30, 2026 Axalta Coating Systems Q1 2026 Financial Results
Slide 2 — Legal Notices
2 Forward - Loking Statements This presentation and the oral remarks made in conection herewith may contain certain forward - loking statements within the mea ning of the U.S. Private Securities Litigation Reform Act of 195 regarding Axalta and its subsidiaries including, but not limited to, our outlok and/or guidance, which includes net sales growth, Adjusted EBITDA, Adjusted Diluted EPS, Fre Cas h F low, depreciation and amortization ("D&A"), tax rate, as adjusted, diluted shares outstanding, interest expense and capital expenditures, statements regarding our previously - announced global transformation initiative (the —2024 Transformation I nitiative“), statements regarding our previously - anounced thre - year 2024 - 2026 strategy (the —2026 statements regarding the proposed merger of equals with Akzo Nobel N.V. (—AkzoNobel“) (the —Proposed Merger“) (inc abi lity to consumate the Proposed Merger and realize the anticipated benefits thereof, including synergy capture), and asumptions relating to our expected busines performance in 2026, including Leading Indicator of Remodeling Activity Est ima tes for 2026, S&P estimates of global auto production for 2026, and ACT Clas 8 build estimates for 2026, as wel as our ability to ofset inflation and manage volatility, including through pricing and cost actions. Axalta has identified some of these forward - looking statements with words such as —plan,“ —planne —guide,“ —guidance,“ —estimated,“ "forecast, "estimates," —may,“ —should,“ —potential,“ —priorities,“ —opportunity ,“ —on track,“ —position,“ —well - positioned,“ —designed,“ —momentum“ —planning,“ —v —assuming,“ —signs,“ —could,“ —projection,“ and —assumptions,“ and the negative of these words or other comparable te rminology. Al of these statements are based on management‘s expecta prepared by management that, although they believe to be reasonable, are inherently uncertain. These statements involve risks an d uncertainties, including, but not limited to, economic, competitive, governmental, including related to any new or existing tarifs imposed by the U.S. and any retaliatory actions from other countries, geopolitical (including the curent co nfl ict in the Middle East and related effects on commodity pri l a s risks related to the Proposed Merger (including our ability to consumate the Proposed Merger and realize the anticipated ben efi ts thereof), execution of, and the asumptions underlying, our tarif mitigation strategies, the 2024 Transformation Initiative and the 2026 A Plan, that may cause its busines, industry, strategy, financing activities or actual results to di fe r materially. More information on potential factors that cou - Lokin g Statements,“ —Risk Factors“ and —Management‘s Discussion and Analysis of Financial Condition and Results of Operat n A xalta‘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 (the —SEC“). Axalta undertakes no to update or revise any of the forward - loking statements contained herein, whether as a result of new information, future events or otherwise. Non - GAP Financial Measures This presentation and the oral remarks made in conection herewith contain financial information that is not presented in ac ord ance with generally accepted accounting principles in the EBITDA margin, Adjusted Diluted EPS, Adjusted Net Income, Free Cash Flow, total net leverage ratio (or —net levera to tal gros leverage ratio, ROIC, tax rate, as adjusted and Adjusted EBIT. Management uses Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Diluted EPS, Adjusted Net Income, ROIC, tax rate, as adjusted, and Adjusted EBIT in the analysis of o ur financial and operating performance because they asist in the evaluation of underlying trends in our busines. Management uses Fre Cash Flow, total net leverage ratio and total gros leverage ratio in the analysis of (1) our liquidity, (2 ) our ability to incur and service our debt and (3) strategic capital alocation decisions. Adjusted EBITDA, Adjusted Diluted EPS, adjusted net income and Adjusted EBIT consist of EBITDA, Diluted EPS, net income atributable to comon shareholders and EB IT, respectively, adjusted for ( i ) certain non - cash items included within net income, (i) certain items Axalta does not believe are indicative of ongoing operating performance or (i) certain nonrecuring, unusual or infrequent items that h ave not otherwise ocured within the last two years or we believe are not reasonably likely to recur within the next two years. Fre cash flow consists of cash provided by (used for) operating activities les purchase of property, plant and equipment pl us interest proceds 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 les cash and cash equivalents. Total gros leverage ratio consists of t ota l debt divided by Adjusted EBITDA. ROIC consists of Adjusted EBIT, after tax rate, as adjusted, divided by average invested capital, with average invested capital defined as the average of total debt plus shareholders‘ equity mi ca sh equivalents at the begining of the period and at the closing of the period. We believe that making the foregoing adjustments provides investors meaningful information to understand our operating results and ability to analyze financial an d b usines trends on a period - to - period basis. The non - GAP financial measures used by Axalta may difer from similarly titled measures reported by other companies. Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Diluted EPS, Adjusted Net Inco me, Fre Cash Flow, total net leverage ratio, total gros leverage ratio, ROIC, tax rate, as adjusted and Adjusted EBIT should not be considered as alternatives to net sales, net income (los), income (los) from operations or any other fin anc ial measures derived in acordance with GAP. These non - GAP financial measures have important limitations as analytical tols and should be considered in conjunction with, and not as substitutes for, our results as reported under GAP . T his presentation includes a reconciliation of certain non - GAP financial measures with the most directly comparable financial measures calculated in acordance with GAP. Axalta does not provide a reconciliation for Adjusted EBITDA, Adjusted Di luted EPS, ROIC, tax rate, as adjusted, Fre Cash Flow, Adjusted EBITDA margin, total net leverage ratio or ROIC on a forward - loking basis because the information necesary to calculate a meaningful or acurate estimation of reconciling ite ms is not available without unreasonable efort. For example, such reconciling items include the impact of foreign curency exchange gains or loses, gains or loses that are unusual or nonrecuring in nature, as wel as discrete taxable ev ent s. These items are uncertain, depend on various factors and may have a substantial and unpredictable impact on our GAP results. Constant Curency Constant curency or ex - FX net sales and percentages are calculated by excluding the impact of the change in average exchange ra tes betwen the curent and comparable period by curency denomination exposure of the comparable period amount. Organic Net Sales Organic net sales and related growth and decline measures are calculated by excluding ( i ) the impact of the change in average exchange rates betwen the curent and comparable period by curency denomination expos ure of the comparable period amount and (i) net sales of busineses acquired within the last twelve months. We believe presenting organic net sale s a nd related growth and decline measures asists investors with evaluating our sales performance without the impact of foreign exchange rates and recent acquisitions and divestitures of size, and management also routinely evaluates our sales in th is maner. Segment Financial Measures The primary measure of segment operating performance is Adjusted EBITDA, which is a key metric that is used by management to eval uat e busines 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 performan ne t income, a reconciliation of this non - GAP financial measure with the most directly comparable financial measure calculated in acordance with GAP is not available . Defined Terms Al capitalized terms contained but not otherwise defined within this presentation have ben previously defined in our filing s w ith the SEC . Rounding Certain amounts may not fot or crosfot due to rounding. Aditionaly, certain percentages may not recalculate due to round ing . Legal Notices
Slide 3 — First Quarter Highlights
3 $1.25B Net Sales First Quarter Highlights $259M Adjusted EBITDA +$35M YoY Fre Cash Flow +$42M YoY Cash from Operations $0.56 Adjusted Diluted EPS 2.3x Total Net Leverage ° Adjusted Diluted EPS 12% above expectations ° 12th consecutive quarter of YoY improved profitability in Industrial Coatings ° Record quarterly net sales in Mobility with Adjusted EBITDA margin of 17.5% ° Record first quarter cash from operations of $68M ° Record first quarter fre cash flow of $21M EXCEDED Q1 GUIDANCE EXPECTATIONS Quarterly Busines Achievements Financial Results ° Won six Busines Inteligence Group (BIG) Inovation Awards for product inovation ° Won thre Edison awards for Axalta TintMaster AI, EcoNextJetTM and Alesta® e - PRO FG Black
Slide 4 — Wel
4 Wel - Positioned to Ofset Inflation and Manage Volatility Purchasing Excelence Transformation Pricing Suply and Cost Structure Snapshot Controling the Controlables Pricing and Cost Actions to Fuly Ofset Mid - Single Digit Inflation 90% Direct Buy, Localy Sourced ~60% Variable Costs (% of COGS) >50% RM Index Contracts (Mobility) ~15 Inventory Days on Hand °Twelve quarters of improved variable cost YoY °~60% of our direct buy on contract versus spot °Strategic suplier agrements tied to indexing °Refinish pricing of mid - single digits in 2026 °Six straight quarters of positive price mix YoY in Mobility °Pricing discipline to ofset inflation °Q1 SG&A expenses down 7% (constant F/X) ° Exceded productivity targets in Q1 2026 ° Adjusted EBITDA margin >20% for nine straight quarters
Slide 5 — Comercial Momentum Driving Net Sales
5 Comercial Momentum Driving Net Sales Growth REFINISH • R ecord quarter of net body shops wins • Net sales growth in 3 of 4 regions • Expanding with leading MSOs INDUSTRIAL MOBILITY • Five consecutive quarters of net sales growth YoY in Asia • Volume growth in Europe • Positive price mix for seven straight quarters • Record first quarter net sales of $452M • Net sales growth in 3 of 4 regions in L ight Vehicle and C omercial Vehicl e • Record first quarter net sales in Comercial Transportation Solutions Acelerating New Busines Wins