Axalta Q4 Free Cash Flow Jumps 92%, Raises 2026 Revenue Growth Guide
Axalta highlighted strong free cash flow of $230M in Q4 2025, a 92% increase year-over-year, and reduced net debt by $200M. The company reported adjusted EBITDA margin expansion of 150 basis points to 18% and raised 2026 organic revenue growth guidance to 5-6%.
1. Q4 2025 Financial Performance
Axalta posted Q4 revenue of $1.34 billion, up 9% year-over-year, and delivered adjusted EPS of $0.37, exceeding internal targets. Adjusted EBITDA margin expanded 150 basis points to 18% on cost discipline and favorable product mix.
2. Robust Cash Generation and Debt Reduction
Free cash flow reached $230 million in the quarter, marking a 92% increase versus Q4 2024. Management used a portion of cash to cut net debt by $200 million, lowering the leverage ratio to 2.5x EBITDA.
3. 2026 Outlook Raised
The company lifted its organic revenue growth forecast for 2026 to 5–6%, up from the prior 4–5% range. It expects adjusted EBITDA margin of 17–18.5% and plans to invest $150 million in growth initiatives.
4. Segment Highlights
Refinish coatings sales climbed 12% driven by North America demand, while performance coatings grew 7% on industrial recovery. Margin improvement was broad-based across regions.