Axalta Coating Systems Ltd. (AXTA) Bundle
A Brief History of Axalta Coating Systems Ltd.
Axalta Coating Systems Ltd. is a leading global supplier of liquid and powder coatings, with a focus on innovation and sustainability. The company has a rich history that dates back to its founding in 1866 as the Baltimore, Maryland-based company known as the "Carboline Company." Over the years, it has undergone numerous transformations, mergers, and acquisitions, becoming a prominent player in the coatings industry.
Recent Financial Performance (2024)
As of September 30, 2024, Axalta reported a net income of $254 million for the nine months ended September 30, 2024, compared to $194 million for the same period in 2023. The diluted net income per share for the same period was $1.15 compared to $0.87 in 2023.
| Financial Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Income | $254 million | $194 million |
| Diluted Net Income per Share | $1.15 | $0.87 |
| Net Sales | $3.965 billion | $3.887 billion |
| Operating Income | $519 million | $426 million |
Cash Flow Analysis
For the nine months ended September 30, 2024, Axalta generated $342 million in net cash from operating activities, an increase from $289 million in 2023. The company reported net cash used for investing activities of $374 million in 2024, primarily due to acquisitions and capital expenditures.
| Cash Flow Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Cash Provided by Operating Activities | $342 million | $289 million |
| Net Cash Used for Investing Activities | ($374 million) | ($65 million) |
| Net Cash Used for Financing Activities | ($90 million) | ($252 million) |
Balance Sheet Highlights
As of September 30, 2024, Axalta's total assets were $3.8 billion, with total liabilities of $1.85 billion, resulting in total equity of $1.95 billion. The company maintained cash and cash equivalents of $150 million.
| Balance Sheet Item | Amount |
|---|---|
| Total Assets | $3.8 billion |
| Total Liabilities | $1.85 billion |
| Total Equity | $1.95 billion |
| Cash and Cash Equivalents | $150 million |
Strategic Initiatives and Market Position
In February 2024, Axalta announced a global transformation initiative aimed at simplifying its organizational structure and enhancing operational efficiency. This initiative is expected to incur costs of approximately $95-135 million but is projected to yield annualized savings of around $75 million once fully executed.
The company has continued to focus on sustainability and innovation, which are critical to maintaining its competitive edge in the coatings market. Axalta's ongoing investments in research and development are essential for creating advanced product offerings that meet the evolving needs of customers and regulatory demands.
Market Trends and Future Outlook
As of 2024, Axalta operates in a competitive environment with challenges such as fluctuating raw material costs and changing market demands. However, the company is well-positioned to capitalize on growth opportunities in key markets, including automotive and industrial coatings, where it has established a strong presence.
Overall, Axalta Coating Systems Ltd. continues to adapt and innovate, ensuring its place as a leader in the global coatings industry as it moves forward into 2024 and beyond.
A Who Owns Axalta Coating Systems Ltd. (AXTA)
Major Shareholders
As of 2024, Axalta Coating Systems Ltd. (AXTA) has a diverse ownership structure, with both institutional and individual shareholders. The largest shareholders include:
| Shareholder Type | Shareholder Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 8.9% |
| Institutional Investor | BlackRock, Inc. | 8.3% |
| Institutional Investor | Wellington Management Group LLP | 7.5% |
| Individual Investor | Charles W. Shaver (Former CEO) | 1.2% |
| Other | Various Individual Shareholders | 74.1% |
Institutional Ownership
Institutional investors play a significant role in Axalta's ownership, with approximately 40% of shares held by various institutional funds. The top institutional shareholders are detailed below:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| The Vanguard Group | 19.3 million | 8.9% |
| BlackRock, Inc. | 18.0 million | 8.3% |
| Wellington Management | 16.4 million | 7.5% |
| State Street Corporation | 14.2 million | 6.5% |
| Invesco Ltd. | 12.8 million | 5.9% |
Executive Ownership
Executive ownership is also a critical aspect of Axalta's ownership structure. Key executives and their respective ownership stakes are outlined below:
| Executive | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Charles W. Shaver | Former CEO | 2.6 million | 1.2% |
| Robert J. Bryant | CEO | 1.0 million | 0.5% |
| Other Executives | N/A | 1.5 million | 0.7% |
Recent Developments in Ownership
In recent months, Axalta has seen changes in its ownership landscape due to share buybacks and institutional rebalancing:
- Axalta repurchased approximately 2.8 million shares for $100 million in 2024.
- The company has increased its borrowing capacity under its Revolving Credit Facility, which may influence future stock performance and ownership dynamics.
- Recent acquisitions, such as CoverFlexx, could also lead to shifts in ownership as share issuance may be used as part of the funding strategy.
Summary of Financial Performance
As of September 30, 2024, Axalta reported total assets of $7.5 billion and total liabilities of $5.5 billion. The company has experienced a net income of $254 million for the nine months ended September 30, 2024, reflecting a strong financial position that may bolster shareholder confidence.
| Financial Metric | Value |
|---|---|
| Total Assets | $7.5 billion |
| Total Liabilities | $5.5 billion |
| Net Income (9 months) | $254 million |
| Cash and Cash Equivalents | $567 million |
| Retained Earnings | $1.54 billion |
Axalta Coating Systems Ltd. (AXTA) Mission Statement
Company Overview
Axalta Coating Systems Ltd. specializes in providing high-performance coatings for various industries, including automotive and industrial applications. The company emphasizes innovation and sustainability in its operations, aiming to deliver advanced coating solutions that meet customer needs worldwide.
Mission Statement
As of 2024, Axalta's mission statement focuses on:
- Leading the coatings industry through innovation and sustainability.
- Providing superior solutions that enhance the durability and aesthetics of customer products.
- Fostering a culture of integrity, safety, and respect for the environment.
- Delivering value to customers, employees, and shareholders.
Financial Performance
For the nine months ended September 30, 2024, Axalta reported:
| Metric | 2024 | 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Sales | $3,965 million | $3,887 million | $78 million | 2.0% |
| Adjusted EBITDA | $201 million | $151 million | $50 million | 33.8% |
| Net Income | $254 million | $194 million | $60 million | 30.9% |
| Basic Net Income per Share | $1.15 | $0.88 | $0.27 | 30.7% |
Market Position
Axalta operates in a competitive environment, focusing on key segments such as:
- Performance Coatings
- Mobility Coatings
For the nine months ended September 30, 2024, the net sales breakdown was:
| Segment | Net Sales (in millions) | Change (%) |
|---|---|---|
| Performance Coatings | $2,612 | 2.1% |
| Mobility Coatings | $1,353 | 1.9% |
Strategic Initiatives
In 2024, Axalta launched a transformation initiative aimed at:
- Simplifying organizational structure.
- Improving financial performance and cash flow generation.
- Yielding estimated net savings of approximately $75 million annually.
Projected cash expenditures related to this initiative are expected to be between $95 million and $135 million.
Environmental Commitment
Axalta's mission incorporates sustainability, focusing on:
- Reducing environmental impact through eco-friendly products.
- Implementing sustainable practices across operations.
Conclusion
Axalta Coating Systems Ltd. remains committed to its mission of innovation, customer satisfaction, and sustainability, while showcasing strong financial performance and strategic growth initiatives.
How Axalta Coating Systems Ltd. (AXTA) Works
Business Overview
Axalta Coating Systems Ltd. operates primarily in the coatings industry, providing a variety of coating solutions for different markets. The company segments its operations into Performance Coatings and Mobility Coatings.
Financial Performance
As of September 30, 2024, Axalta reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $1,320 million | $1,309 million | 0.8% |
| Net Income | $102 million | $73 million | 39.7% |
| Adjusted EBITDA | $201 million | $151 million | 33.8% |
| Adjusted EBITDA Margin | 15.7% | 13.4% | 2.3% |
Segment Performance
Net sales performance for the segments as of September 30, 2024:
| Segment | Net Sales (2024) | Net Sales (2023) | Change (%) |
|---|---|---|---|
| Performance Coatings | $877 million | $856 million | 2.4% |
| Mobility Coatings | $443 million | $453 million | (2.2%) |
Operational Metrics
Key operational metrics for the nine months ended September 30, 2024:
| Metric | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Volume Effect | 1.8% | 3.8% | - |
| Price/Mix Effect | (0.2%) | (1.4%) | - |
| Exchange Rate Effect | (0.3%) | (0.1%) | - |
Cash Flow and Liquidity
Cash flow metrics for the nine months ended September 30, 2024:
| Activity | 2024 | 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $342 million | $289 million |
| Net Cash Used for Investing Activities | $(374 million) | $(65 million) |
| Net Cash Used for Financing Activities | $(90 million) | $(252 million) |
Balance Sheet Highlights
Key balance sheet figures as of September 30, 2024:
| Item | Amount (in millions) |
|---|---|
| Total Assets | $7,500 |
| Total Liabilities | $5,549 |
| Total Shareholders' Equity | $1,951 |
Market Trends and Strategic Initiatives
Axalta is focusing on enhancing its product offerings in line with trends in sustainability and advanced coating technologies. The company has initiated a global transformation initiative expected to yield significant operational improvements and cost reductions.
Recent Developments
Recent acquisitions, including CoverFlexx and André Koch, are expected to contribute positively to Axalta's revenue and market reach.
Conclusion of Financial Metrics
As of September 30, 2024, Axalta's financial health appears stable, with positive growth in net income and adjusted EBITDA, despite challenges in the Mobility Coatings segment. The strategic initiatives and acquisitions are anticipated to bolster future performance.
How Axalta Coating Systems Ltd. (AXTA) Makes Money
Revenue Streams
Axalta Coating Systems Ltd. generates revenue through two primary segments: Performance Coatings and Mobility Coatings.
| Segment | Net Sales (2024 Q3) | Net Sales (2023 Q3) | % Change |
|---|---|---|---|
| Performance Coatings | $877 million | $856 million | 2.4% |
| Mobility Coatings | $443 million | $453 million | -2.2% |
| Total Net Sales | $1,320 million | $1,309 million | 0.8% |
Performance Coatings Segment
The Performance Coatings segment includes refinish and industrial coatings. For the nine months ended September 30, 2024, net sales increased by 2.1% to $2,612 million, driven by:
- Contributions from the CoverFlexx acquisition (0.8%)
- Higher sales volumes (0.7%)
- Increased average selling prices (0.5%)
Mobility Coatings Segment
The Mobility Coatings segment focuses on coatings for light and commercial vehicles. For the nine months ended September 30, 2024, net sales increased by 1.9% to $1,353 million, influenced by:
- Higher sales volumes (3.8%)
- Lower average selling prices (-1.4%)
- Unfavorable currency translation (-0.5%)
Cost Structure
For the nine months ended September 30, 2024, Axalta's cost of sales was $2,614 million, representing 65.9% of net sales compared to 69.3% in the prior year.
| Cost of Sales (2024) | Cost of Sales (2023) | % Change |
|---|---|---|
| $2,614 million | $2,692 million | -2.9% |
Adjusted EBITDA
For the nine months ended September 30, 2024, Axalta reported adjusted EBITDA of $640 million, a 16.3% increase from $550 million in 2023.
| Period | Adjusted EBITDA | Adjusted EBITDA Margin |
|---|---|---|
| 2024 | $640 million | 24.5% |
| 2023 | $550 million | 21.5% |
Net Income
Net income attributable to common shareholders for the nine months ended September 30, 2024 was $254 million, compared to $194 million in 2023.
| Period | Net Income | Net Income per Share |
|---|---|---|
| 2024 | $254 million | $1.15 |
| 2023 | $194 million | $0.88 |
Cash Flow Analysis
Net cash provided by operating activities for the nine months ended September 30, 2024 was $342 million, compared to $289 million in 2023.
| Cash Flow Category | 2024 | 2023 |
|---|---|---|
| Operating Activities | $342 million | $289 million |
| Investing Activities | ($374 million) | ($65 million) |
| Financing Activities | ($90 million) | ($252 million) |
Liquidity Position
As of September 30, 2024, Axalta had total assets of $7,500 million and total liabilities of $5,549 million. The company’s liquidity includes cash and cash equivalents of $567 million.
| Balance Sheet Item | Amount (2024) |
|---|---|
| Total Assets | $7,500 million |
| Total Liabilities | $5,549 million |
| Cash and Cash Equivalents | $567 million |
Future Initiatives
Axalta has initiated a 2024 Transformation Initiative aimed at simplifying its organizational structure, with an expected annualized savings of approximately $75 million once fully executed.
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Article updated on 8 Nov 2024
Resources:
- Axalta Coating Systems Ltd. (AXTA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Axalta Coating Systems Ltd. (AXTA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Axalta Coating Systems Ltd. (AXTA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.