Revenue growth has entered a contractionary phase, falling to -0.6% in 2026Q1, while gross margins have simultaneously compressed from a 35.0% peak in 2024Q3 to 31.1%.
| 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 |
|---|
| Sales/Revenue | 5.11B | 5.12B | 5.28B | 5.18B | 4.88B | 4.42B | 3.74B | 4.48B | 4.7B | 4.38B | 4.09B | 4.11B | 4.39B | 3.99B | 4.26B |
| Revenue Growth % | -2.57% | -3.01% | 1.77% | 6.14% | 10.59% | 18.16% | -16.61% | -4.55% | 7.29% | 6.95% | -0.42% | -6.41% | 10.15% | -6.34% | - |
| Cost of Goods Sold | 3.46B | 3.45B | 3.48B | 3.57B | 3.47B | 2.99B | 2.46B | 2.92B | 3.11B | 2.78B | 2.53B | 2.6B | 2.9B | 2.77B | 2.93B |
| COGS % of Revenue | - | 67.36% | 65.92% | 68.79% | 70.97% | 67.64% | 65.76% | 65.1% | 66.15% | 63.53% | 61.79% | 63.19% | 65.97% | 69.55% | 68.89% |
| Gross Profit | 1.65B | 1.67B | 1.8B | 1.62B | 1.42B | 1.43B | 1.28B | 1.56B | 1.59B | 1.6B | 1.56B | 1.51B | 1.49B | 1.21B | 1.32B |
| Gross Margin % | 32.2% | 32.64% | 34.08% | 31.21% | 29.03% | 32.36% | 34.24% | 34.9% | 33.85% | 36.47% | 38.21% | 36.81% | 34.03% | 30.45% | 31.11% |
| Gross Profit Growth % | - | -7.12% | 11.12% | 14.1% | -0.76% | 11.66% | -18.19% | -1.6% | -0.43% | 2.08% | 3.38% | 1.23% | 23.09% | -8.32% | - |
| Operating Expenses | 928M | 906M | 1.09B | 1.03B | 995M | 966.5M | 974.2M | 1.08B | 1.15B | 1.23B | 1.16B | 1.05B | 1.12B | 1.19B | 914.9M |
| OpEx % of Revenue | - | 17.71% | 20.7% | 19.87% | 20.37% | 21.89% | 26.06% | 24.01% | 24.44% | 28.17% | 28.31% | 25.48% | 25.61% | 29.83% | 21.49% |
| Selling, General & Admin | 830M | 835M | 847M | 840M | 772M | 738.7M | 695M | 822.1M | 876.4M | 934.7M | 959.8M | 914.8M | 991.5M | 1.04B | 873.4M |
| SG&A % of Revenue | - | 16.32% | 16.05% | 16.2% | 15.81% | 16.73% | 18.59% | 18.34% | 18.66% | 21.35% | 23.45% | 22.26% | 22.58% | 26.1% | 20.52% |
| Research & Development | 72M | 71M | 74M | 74M | 66M | 62.4M | 55.2M | 70.2M | 73.1M | 65.3M | 57.7M | 51.6M | 49.5M | 40.5M | 41.5M |
| R&D % of Revenue | - | 1.39% | 1.4% | 1.43% | 1.35% | 1.41% | 1.48% | 1.57% | 1.56% | 1.49% | 1.41% | 1.26% | 1.13% | 1.02% | 0.97% |
| Other Operating Expenses | 1000K | 0 | 171M | 116M | 157M | 165.4M | 224M | 183.8M | 198.1M | 232.8M | 141.3M | 80.7M | 83.8M | 108M | 0 |
| Operating Income | 717M | 764M | 706M | 588M | 423M | 462.4M | 305.5M | 488.2M | 442.1M | 363.7M | 405.1M | 465.6M | 369.5M | 24.9M | 409.3M |
| Operating Margin % | 14.03% | 14.93% | 13.38% | 11.34% | 8.66% | 10.47% | 8.17% | 10.89% | 9.41% | 8.31% | 9.9% | 11.33% | 8.41% | 0.62% | 9.62% |
| Operating Income Growth % | - | 8.22% | 20.07% | 39.01% | -8.52% | 51.36% | -37.42% | 10.43% | 21.56% | -10.22% | -12.99% | 26.01% | 1383.94% | -93.92% | - |
| EBITDA | 1.02B | 1.06B | 986M | 864M | 726M | 778.9M | 625.8M | 841.2M | 811.2M | 711.2M | 727.2M | 773.3M | 678.2M | 325.6M | 520M |
| EBITDA Margin % | 19.93% | 20.7% | 18.69% | 16.67% | 14.86% | 17.64% | 16.74% | 18.77% | 17.27% | 16.25% | 17.77% | 18.82% | 15.44% | 8.17% | 12.22% |
| EBITDA Growth % | -3.42% | 7.4% | 14.12% | 19.01% | -6.79% | 24.46% | -25.61% | 3.7% | 14.06% | -2.2% | -5.96% | 14.02% | 108.29% | -37.38% | - |
| D&A (Non-Cash Add-back) | 301M | 295M | 280M | 276M | 303M | 316.5M | 320.3M | 353M | 369.1M | 347.5M | 322.1M | 307.7M | 308.7M | 300.7M | 110.7M |
| EBIT | 717M | 764M | 701M | 568M | 397M | 474.7M | 272.1M | 492.6M | 427.1M | 336.6M | 260.9M | 354.4M | 254.5M | -48.6M | 409.3M |
| Net Interest Income | -182M | -193M | -205M | -213M | -140M | -134.2M | -149.9M | -162.6M | -159.6M | -147M | -178.2M | -196.5M | -217.7M | -240.1M | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 182M | 193M | 205M | 213M | 140M | 134.2M | 149.9M | 162.6M | 159.6M | 147M | 178.2M | 196.5M | 217.7M | 215.1M | 0 |
| Other Income/Expense | -195M | -218M | -210M | -233M | -166M | -121.9M | -183.3M | -158.2M | -174.6M | -174.1M | -322.4M | -307.7M | -332.7M | -288.6M | -16.3M |
| Pretax Income | 522M | 546M | 496M | 355M | 257M | 340.5M | 122.2M | 330M | 267.5M | 189.6M | 82.7M | 157.9M | 36.8M | -263.7M | 393M |
| Pretax Margin % | 10.22% | 10.67% | 9.4% | 6.85% | 5.26% | 7.71% | 3.27% | 7.36% | 5.7% | 4.33% | 2.02% | 3.84% | 0.84% | -6.61% | 9.23% |
| Income Tax | 151M | 167M | 105M | 86M | 65M | 76.1M | 200K | 77.4M | 54.2M | 141.9M | 38.1M | 62.1M | 2.1M | -44.8M | 145.2M |
| Effective Tax Rate % | 28.93% | 30.59% | 21.17% | 24.23% | 25.29% | 22.35% | 0.16% | 23.45% | 20.26% | 74.84% | 46.07% | 39.33% | 5.71% | 16.99% | 36.95% |
| Net Income | 369M | 378M | 391M | 267M | 192M | 263.9M | 121.6M | 249M | 207.1M | 36.7M | 38.8M | 91.6M | 27.4M | -224.9M | 243.3M |
| Net Margin % | 7.22% | 7.39% | 7.41% | 5.15% | 3.93% | 5.98% | 3.25% | 5.56% | 4.41% | 0.84% | 0.95% | 2.23% | 0.62% | -5.64% | 5.72% |
| Net Income Growth % | -17.82% | -3.32% | 46.44% | 39.06% | -27.25% | 117.02% | -51.16% | 20.23% | 464.31% | -5.41% | -57.64% | 234.31% | 112.18% | -192.44% | - |
| Net Income (Continuing) | 371M | 379M | 391M | 269M | 192M | 264.4M | 122M | 252.6M | 213.3M | 47.7M | 44.6M | 95.8M | 34.7M | -218.9M | 247.8M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 46M | 47M | 44M | 45.5M | 46M | 45.8M | 46.8M | 55.4M | 105.4M | 131.7M | 121.5M | 67.5M | 67.3M | 68.9M | 33.6M |
| EPS (Diluted) | 1.72 | 1.74 | 1.78 | 1.21 | 0.86 | 1.14 | 0.52 | 1.06 | 0.85 | 0.15 | 0.17 | 0.39 | 0.12 | -0.98 | 1.06 |
| EPS Growth % | -16.18% | -2.25% | 47.11% | 40.7% | -24.56% | 119.23% | -50.94% | 24.71% | 466.67% | -11.76% | -56.41% | 225% | 112.24% | -192.45% | - |
| EPS (Basic) | - | 1.75 | 1.78 | 1.21 | 0.87 | 1.14 | 0.52 | 1.06 | 0.87 | 0.15 | 0.18 | 0.40 | 0.12 | -0.99 | 1.06 |
| Diluted Shares Outstanding | 214.6M | 217M | 220.4M | 221.9M | 222.3M | 231.9M | 236M | 235.8M | 242.9M | 246.1M | 244.4M | 239.7M | 230.3M | 229.07M | 229.07M |
| Basic Shares Outstanding | 213.6M | 216M | 219.3M | 221M | 221.7M | 231M | 235.2M | 233.9M | 239M | 240.4M | 238.1M | 233.8M | 229.3M | 227.84M | 229.07M |
| Dividend Payout Ratio | - | - | - | - | - | - | 0.74% | - | 0.48% | 8.17% | 7.73% | - | - | - | - |
Stagnant organic volume growth
As indicated by the most recent quarterly data, Axalta's top-line performance has entered a period of contraction, with revenue growth slipping to -0.6% in 2026Q1, marking a consistent downward trend from the 4.4% growth observed in 2024Q2 across the reported ten-quarter period.
The consistent inability to generate positive year-over-year revenue growth suggests that the company is struggling to offset volume declines in its transportation segment with pricing actions in its refinish business. Investors should monitor whether this stagnation reflects a structural loss of market share or merely a cyclical trough in automotive production cycles.
Based on reported financial statements, Axalta's gross margin has experienced a noticeable contraction, falling from a peak of 35.0% in 2024Q3 to 31.1% in 2026Q1, which highlights the company's difficulty in maintaining pricing power amidst fluctuating raw material costs and competitive market dynamics.
The erosion of gross margins suggests that the company's premium refinish pricing power may be insufficient to fully insulate the bottom line from inflationary pressures. This trend warrants further investigation into whether the company is sacrificing margin to defend its installed base of mixing machines against aggressive competitors.
According to the income statement data, operating margins have fluctuated significantly, dropping from 16.0% in 2025Q3 to 11.6% in 2026Q1, indicating that the company has struggled to achieve consistent operating leverage despite its efforts to manage SG&A expenses during periods of revenue decline.
The lack of consistent operating margin expansion during revenue fluctuations suggests that the company's cost structure remains relatively rigid. This may indicate that fixed costs associated with the refinish ecosystem are not scaling efficiently, potentially limiting profitability upside during future recovery phases.
As reported in recent filings, EPS has shown extreme volatility, ranging from a low of $0.19 in 2024Q1 to a high of $0.62 in 2024Q4, a pattern that appears heavily influenced by non-operating items and inconsistent stock-based compensation charges that complicate core earnings analysis.
The significant swings in net income suggest that investors should look past headline EPS to understand the underlying operational health of the business. The intermittent nature of stock-based compensation, which reached $8.0M in 2025Q2, further complicates the assessment of true cash-generative capacity for shareholders.
While the company emphasizes its refinish moat, the data suggests a potential vulnerability, as evidenced by the steady decline in gross margins from 35.0% to 31.1% over the last six quarters, which may indicate that the competitive landscape is becoming increasingly price-sensitive.
Short-sellers may focus on the disconnect between the company's 'premium' narrative and the reality of margin compression. If the refinish segment's pricing power is indeed waning, the company may face a difficult path toward restoring historical profitability levels without significant structural changes.
Quick answers to the most common questions about buying AXTA stock.
For fiscal year 2025, Axalta Coating Systems Ltd. (AXTA) reported total revenue of $5.12B. This represents a 20.2% increase compared to $4.26B in 2012.
Axalta Coating Systems Ltd. (AXTA) is profitable, generating $378.0M in net income for the fiscal year ending 2025 with a net profit margin of 7.4%.
Axalta Coating Systems Ltd. (AXTA) reported an operating income of $764.0M, resulting in an operating profit margin of 14.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Axalta Coating Systems Ltd. (AXTA) generated $1.67B in gross profit for the year, representing a gross profit margin of 32.6%. This demonstrates the company's core pricing power and production efficiency.