Cash conversion remains highly inconsistent, highlighted by a $114 million outflow from working capital in 2026Q1 and a volatile operating cash flow to net income ratio that reached 5.72 in 2025Q4.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Cash from Operations | 690M | 649M | 576M | 575.3M | 293.8M | 558.6M | 509.3M | 573.1M | 496.1M | 540M | 559.3M | 399.6M | 251.4M | 376.8M | 388.8M |
| Operating CF Margin % | - | 12.68% | 10.92% | 11.1% | 6.02% | 12.65% | 13.63% | 12.79% | 10.56% | 12.34% | 13.67% | 9.72% | 5.72% | 9.45% | 9.13% |
| Operating CF Growth % | 204.1% | 12.67% | 0.12% | 95.81% | -47.4% | 9.68% | -11.13% | 15.52% | -8.13% | -3.45% | 39.97% | 58.95% | -33.28% | -3.09% | - |
| Net Income | 369M | 378M | 391M | 268.5M | 192.2M | 264.4M | 122M | 252.6M | 213.3M | 47.7M | 47.6M | 97.9M | 34.7M | -218.9M | 247.8M |
| Depreciation & Amortization | 301M | 295M | 280M | 275.6M | 303.1M | 316.5M | 320.3M | 353M | 369.1M | 347.5M | 322.1M | 307.7M | 308.7M | 300.7M | 110.7M |
| Stock-Based Compensation | 21M | 25M | 28M | 26.2M | 22.2M | 14.9M | 15.1M | 15.7M | 37.3M | 38.5M | 41.1M | 30.2M | 8M | 7.4M | 500K |
| Deferred Taxes | 48M | 45M | -17M | -8.4M | -3.4M | 15M | -55.4M | 15.7M | 6.1M | 91.7M | -14.2M | -5M | -38.2M | -120.8M | 9.1M |
| Other Non-Cash Items | 28M | 32M | 17M | 66.9M | 44.1M | -6.8M | 49M | 21.2M | 24.5M | 100.7M | 217.4M | 159.9M | 76.9M | 209.2M | 7.6M |
| Working Capital Changes | -79M | -127M | -123M | -53.5M | -264.4M | -45.4M | 58.3M | -85.1M | -154.2M | -86.1M | -54.7M | -191.1M | -138.7M | 199.2M | 13.6M |
| Change in Receivables | 83M | 97M | -7M | -119M | -171M | -80.5M | -116M | -10.1M | -22.3M | -15.2M | -67.8M | -61.1M | -40.2M | -6.4M | -58.9M |
| Change in Inventory | 50M | 33M | 12M | 103.1M | -195.4M | -111.6M | 39.6M | 10.8M | -48.1M | -19.9M | -1.7M | -35.2M | -24.7M | 33.9M | 5.7M |
| Change in Payables | -53M | -77M | -49M | 9.4M | 138M | 140.1M | 103M | 18.2M | 49.5M | 39.8M | 32.3M | -6.7M | 53.6M | 67.1M | 54.9M |
| Cash from Investing | -221M | -212M | -440M | -205.7M | -106.4M | -716M | -61.5M | -93.9M | -216.1M | -689.6M | -257M | -164.3M | -178.5M | -5.01B | -88.2M |
| Capital Expenditures | -203M | -196M | -140M | -137.9M | -150.9M | -121.6M | -82.1M | -112.5M | -143.4M | -125M | -136.2M | -138.5M | -188.6M | -107.3M | -94.8M |
| CapEx % of Revenue | 3.97% | 3.83% | 2.65% | 2.66% | 3.09% | 2.75% | 2.2% | 2.51% | 3.05% | 2.86% | 3.33% | 3.37% | 4.29% | 2.69% | 2.23% |
| Acquisitions | -50M | -48M | -301M | -106.3M | -3M | -649M | 3.4M | -3.3M | -109.7M | -568.7M | -114.8M | -28.3M | -6.5M | -4.83B | 100K |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 32M | 32M | 1M | 38.5M | 22.5M | 54.6M | 17.2M | 21.9M | 5.1M | 4.1M | -6M | 2.5M | 16.8M | 700K | 6.5M |
| Cash from Financing | -453M | -401M | -201M | -315M | -368.9M | -334.5M | -130.9M | -158.4M | -341.3M | 367.3M | -232.6M | -74.5M | -123.2M | 5.1B | -290.6M |
| Debt Issued (Net) | -280M | -230M | -92M | -247.9M | -153M | -100.9M | -62.1M | -67.1M | -87.1M | 419.5M | -246.1M | -127.3M | -120.4M | 3.9B | -700K |
| Equity Issued (Net) | -165M | -165M | -100M | -50M | -200.1M | -229.4M | -26M | -105.3M | -236.4M | -58.4M | 0 | 62.4M | 5.5M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | -900K | 0 | -1M | -3M | -3M | -4.7M | -2.2M | 0 | 0 |
| Share Repurchases | -165M | -165M | -100M | -50M | -200.1M | -243.8M | -26M | -105.3M | -253.8M | -58.4M | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -9M | -6M | -9M | -17.1M | -15.8M | -4.2M | -41.9M | 14M | -16.8M | 9.2M | 16.5M | -19.8M | -8.3M | 1.2B | -289.9M |
| Net Change in Cash | 33M | 64M | -107M | 48.2M | -196.3M | -512.8M | 343.5M | 324.1M | -76.5M | 234.8M | 50.4M | 102.9M | -77.2M | 459.3M | 9.9M |
| Free Cash Flow | 488M | 453M | 436M | 437.4M | 142.9M | 437M | 427.2M | 460.6M | 352.7M | 415M | 423.1M | 261.1M | 62.8M | 269.5M | 294M |
| FCF Margin % | 9.55% | 8.85% | 8.26% | 8.44% | 2.93% | 9.9% | 11.43% | 10.28% | 7.51% | 9.48% | 10.34% | 6.35% | 1.43% | 6.76% | 6.91% |
| FCF Growth % | 19.32% | 3.9% | -0.32% | 206.09% | -67.3% | 2.29% | -7.25% | 30.59% | -15.01% | -1.91% | 62.05% | 315.76% | -76.7% | -8.33% | - |
| FCF per Share | 2.27 | 2.09 | 1.98 | 1.97 | 0.64 | 1.88 | 1.81 | 1.95 | 1.45 | 1.69 | 1.73 | 1.09 | 0.27 | 1.18 | 1.28 |
| FCF Conversion (FCF/Net Income) | 1.32x | 1.72x | 1.47x | 2.15x | 1.53x | 2.12x | 4.19x | 2.30x | 2.40x | 14.71x | 14.41x | 4.36x | 9.18x | -1.68x | 1.60x |
| Interest Paid | 0 | 0 | 198M | 212.5M | 126.8M | 118.1M | 151.7M | 156.9M | 152.4M | 130.1M | 169.4M | 172.5M | 192M | 171.9M | 0 |
| Taxes Paid | 0 | 0 | 131M | 96.7M | 63M | 57.9M | 25.9M | 42.2M | 57.4M | 61.7M | 39.2M | 52.4M | 57M | 83.1M | 15.9M |
Working capital volatility
According to recent financial disclosures, Axalta's operating cash flow to net income ratio has exhibited extreme volatility, ranging from a low of 0.26 in 2025Q1 to a high of 5.72 in 2025Q4, suggesting that reported earnings are frequently decoupled from actual cash generation capabilities.
The wide variance in the OCF/NI ratio indicates that accruals and non-cash adjustments play a disproportionate role in determining bottom-line results. Investors should monitor whether this disconnect stems from aggressive revenue recognition or timing mismatches in the company's complex global supply chain.
As reported in quarterly filings, Axalta's free cash flow margins have fluctuated wildly between -1.3% and 22.7% over the last ten quarters, reflecting a lack of consistent cash generation that complicates the company's ability to fund operations and capital returns through internal resources alone.
The erratic FCF trajectory suggests that the business remains highly sensitive to working capital swings rather than steady operational efficiency. This inconsistency may indicate that the company's core refinish business, while structurally sound, is struggling to offset the cash-intensive nature of its transportation segment.
Based on the provided cash flow statements, Axalta experienced a significant $114 million cash outflow from working capital in 2026Q1, highlighting a recurring pattern of inefficient inventory and receivables management that frequently drags down the company's quarterly operating cash flow performance.
The recurring negative working capital charges suggest that the company may be struggling to align its production cycles with actual customer demand. This persistent cash drag warrants further investigation into whether the company is over-producing in anticipation of volume that fails to materialize in the refinish market.
Data from recent financial statements indicates that Axalta's capital expenditure as a percentage of revenue has trended upward, reaching 4.0% in 2026Q1, which may suggest an increasing need for reinvestment to maintain the competitive edge of its proprietary color-matching and refinish technology platforms.
The rising capital intensity appears to be a defensive necessity to protect the company's refinish moat against lower-cost competitors. If this trend continues, it may further constrain the company's ability to generate meaningful free cash flow during periods of cyclical automotive production weakness.
Quick answers to the most common questions about buying AXTA stock.
Axalta Coating Systems Ltd. (AXTA) generated $649.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Axalta Coating Systems Ltd. (AXTA) generated $453.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Axalta Coating Systems Ltd. (AXTA) spent $196.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Axalta Coating Systems Ltd. (AXTA) spent $165.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.