Axalta Coating Systems recorded its highest quarterly net sales and adjusted EBITDA in the company’s history during Q2.

Net sales increased 4.4% year-over-year (YoY) to $1.35 billion and net income increased $52 million YoY to $113 million. Adjusted EBITDA increased $64 million YoY to $291 million. Sales volume increased by 5% YoY with positive contributions from all four end markets — refinish, industrial, light vehicle, and commercial vehicle.

“Axalta continues to execute exceptionally well,” said Chris Villavarayan, Axalta CEO and president, in a news release. “With the solid second quarter performance and better visibility into the second half of the year, we are raising our full-year 2024 Adjusted EBITDA, Adjusted Diluted EPS, and Free Cash Flow guidance.”

He added during the company’s Q2 earnings call that Axalta has demonstrated its “ability to execute well” worldwide. 

“Strategically, a key focus for us remains growth in the premium segment where we believe we can win based on three key factors,” Villavarayan said. “First, the productivity of our single-visit application waterborne system; second, our end-to-end fully automated color match that now includes hands-free mixing following the launch of Irus Mix; and finally, through a host of digital tools which is optimizing customer support and real-time productivity monitoring for our body shop customers. Year-to-date, we have already delivered over 1,200 net body shop wins, and we expect this to be another great year.”

Q2 cash provided by operating activities was $114 million compared to $131 million during Q2 2023. Cash and cash equivalents at quarter end were $840 million and total liquidity was over $1.4 billion.

“I believe our success over the last 18 months has been a result of the priority we have placed on improving productivity, making smart commercial decisions, and tightly managing capital returns,” Villavarayan told investors. “Momentum is building throughout the organization, and I’m absolutely proud of the team’s accomplishment in the first half of 2024.

“I’m confident in our trajectory, which has led us to again increase our guidance for 2024 adjusted EBITDA, adjusted diluted earnings per share, and free cash flow.”

Refinish net sales grew 5% YoY during the quarter, making it the 14th quarter of improved top-line performance, he said. In North America, net sales were up 13%.

In July, Axalta completed its acquisition of CoverFlexx Group, which manufactures coatings for automotive refinish and aftermarket applications in North America.

In May, Axalta introduced its “2026 A Plan,” which Villavarayan said is a multi-year strategy to accelerate performance and transform the company. ‘

“I expect the five unique elements of the plan will differentiate Axalta in the industry and allow us to achieve new levels of exceptional performance,” he said. “We are creating a culture that is faster, more effective, and more responsive. Second, is operational excellence. We will continue the journey we have started to control the controllable and drive more efficiencies in corporate, operations and supply chain.

“We expect these actions to yield approximately $125 million in annualized run rate savings in 2026. Next, it’s driving growth through portfolio optimization with a focus on our core strengths and profitable businesses. Fourth is sustainable innovation, which is creating the world’s best products for sustainability, efficiency, and color. Examples of this are NextJet and the Irus Mix. And finally, capital allocation, where we plan to focus on investing in the business and returning value to our shareholders.”

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