Axalta Coating Systems announced its financial results for the fourth quarter and full year ended December 31, 2025.

“We delivered record earnings in 2025, demonstrating the resilience of our business and the successful execution of our 2026 A Plan in the midst of a challenging macro environment,” said Chris Villavarayan, Chief Executive Officer and President of Axalta. “We are building top-line momentum, and our 2025 Adjusted EBITDA margin was 22%—one of the highest in the company’s history and 100 basis points above our A Plan target.”

Q4 Results

Fourth quarter 2025 net sales decreased 4% year over year to $1,262 million, reflecting lower volumes from a challenging economic environment, partially offset by favorable foreign currency translation and positive price-mix in Mobility Coatings.

Net income was $60 million, resulting in a net income margin of 4.8% compared to $137 million in the prior year period. The decrease was driven by higher income tax expense, lower net sales, and increased merger and acquisition-related costs. 

These increased expenses were partially mitigated by reduced selling, general, and administrative (SG&A) expenses and lower interest expenses. 

Adjusted net income was $128 million, down slightly from the prior year. Adjusted EBITDA was $272 million, and Adjusted EBITDA margin expanded by 50 basis points year over year to 21.5%. 

Full Year Results

For the full year 2025, net sales were $5,117 million, a decrease of 3% compared to the previous year. Declines primarily in North America were offset by incremental business wins, favorable foreign currency translation, and positive price-mix in three out of the four businesses.

Net income for the full year totaled $379 million, a decrease of $12 million over 2024, with net income margin holding steady at 7.4% on a year-over-year basis. The decline in net income primarily reflects the impact of lower volumes and higher income tax expense, partially offset by a 5% reduction in SG&A expense, lower interest expense, and reduced variable costs compared to last year.

Adjusted net income improved by $22 million year over year to $540 million. Adjusted EBITDA reached a record of $1,128 million. Adjusted EBITDA margin improved 80 basis points to 22.0% driven by operational excellence and strong cost management.

Villavarayan added, “Looking ahead, we will continue to leverage the strong foundation we’ve established to drive further improvement in our financial performance. Axalta’s balance sheet is strong, and we believe our proven portfolio and ability to navigate any operating environment will enable us to deliver meaningful value to shareholders as we prepare for our next chapter with AkzoNobel.”