NYSE$AXTA

Axalta Coating Systems · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Axalta's first quarter results demonstrated solid execution in a still challenging global operating environment.

Axalta Coating Systems Ltd. announced its financial results for the first quarter ended March 31, 2022. Net sales increased 10.4% year-over-year (13.4% ex FX) led by accelerating pricing gains in every end-market and a solid global demand profile. Diluted EPS was $0.18 versus $0.06 in Q1 2021; Adjusted diluted EPS was $0.31 versus $0.50 in Q1 2021.

  • Net sales increased 10.4% year-over-year (13.4% ex FX) led by accelerating pricing gains in every end-market and a solid global demand profile, except in Light Vehicle due to continued auto OEM production constraints
  • Price-mix increased 8.8% with strong contributions across all end-markets; Industrial Coatings mid-teens price-mix growth led all end-markets; expect continued sequential pricing gains company-wide
  • Income from operations of $86.3 million versus $52.6 million in Q1 2021; Adjusted EBIT of $119.5 million compared with $182.8 million in Q1 2021
  • Completed share repurchases of $175.1 million reflecting the repurchase of 6.4 million shares during Q1 2022

Headline financials

Total Revenue

$1.17B

Previous: $1.06B+10.4%
EPS (adj)

$0.31

Previous: $0.50-38.0%
Capital Expenditures

-$42.5M

Previous: -$31.8M-33.6%
Free Cash Flow

-$1M

Previous: -$16.6M+94.0%
Net Income

$41.5M

Previous: $15.2M+173.0%
Operating Income

$86.3M

Previous: $52.6M+64.1%
Gross Profit

$337M

Previous: $379M-11.2%
Cash & Equivalents

$576M

Previous: $1.27B-54.5%
Total Assets

$7.08B

Previous: $7.02B+0.9%
Stock-Based Comp

$5.3M

Previous: $3.6M+47.2%

Revenue & EPS history

Axalta · Revenue · Quarterly

$1.17B

Q1 2022+10.4%vs Q1 2021
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Axalta · $1.31B total across 2 segments · Q3 2023

  • Performance Coatings
    $856M
  • Mobility Coatings
    $453M

Forward guidance

Q2 2022 Financial Guidance

Tailwinds

  • Net Sales: ~+11-13%, including, ~(4)% foreign currency impact and ~+4% acquisition benefit; pricing expected to be low double-digits higher year-over-year
  • Adjusted EBIT: $135-$165 million
  • Adjusted Diluted EPS: $0.35-0.45; including a $0.02 foreign currency headwind
  • Interest Expense: ~$34 million
  • Diluted Shares: ~222 million

Headwinds

  • Adjusted Tax Rate: ~21-22%
  • D&A: ~$80 million; including $24 million step-up D&A
  • Expect raw material inflation in the high twenties versus Q2 2021
  • Guidance assumes COVID-19 lockdowns in China begin to moderate in May and no further geopolitical escalation stemming from the Russia-Ukraine conflict
  • Includes a 2%-3% year-over-year Net Sales and $0.03 EPS impact

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+1.2%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+2.7%

Avg return

30 days after

60%

29 / 48 earnings

Positive

+14.1%

Q3 2017

Best reaction

-11.1%

Q2 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+8.8%-3.7%+9.1%
Q4 2025+0.6%-0.2%-18.6%
Q3 2025+2.3%-2.0%+2.4%
Q1 2025-4.7%-1.7%-7.7%
Q4 2024+8.3%+6.0%+0.9%
Q3 2024+7.1%+7.5%+14.3%
Q2 2024-1.2%-4.5%+2.4%
Q1 2024+10.8%+12.8%+13.2%
Q4 2023-3.7%-5.8%+1.8%
Q3 2023+10.6%+11.9%+22.7%
Q2 2023-7.8%-9.5%-11.6%
Q1 2023-5.3%-4.0%-5.0%
Q4 2022+4.5%+7.3%+5.6%
Q3 2022+1.1%+1.2%+13.6%
Q2 2022-5.4%-3.0%-0.2%
Q1 2022+5.5%+2.0%+4.0%
Q4 2021+0.7%-7.5%-12.6%
Q3 2021-3.2%-4.6%-0.4%
Q2 2021+4.3%+3.9%+7.8%
Q1 2021-0.2%-1.9%-3.0%
Q4 2020+1.7%+6.8%+8.1%
Q3 2020+4.3%+2.4%+10.1%
Q2 2020-3.4%-3.0%+5.6%
Q1 2020-3.6%+2.5%+28.1%
Q4 2019+2.5%+5.8%-11.3%
Q3 2019+3.0%+3.9%-1.9%
Q2 2019+2.3%+0.4%-11.4%
Q1 2019-3.3%-1.9%-11.5%
Q4 2018+0.3%+1.0%+5.6%
Q3 2018-0.6%-4.0%-1.1%
Q2 2018+1.7%+1.1%+0.6%
Q1 2018+3.5%+4.0%+9.1%
Q4 2017+1.5%+2.5%+9.0%
Q3 2017+14.1%+14.4%+24.6%
Q2 2017-11.1%-10.5%-7.2%
Q1 2017-0.7%-1.8%-1.4%
Q4 2016+0.3%+1.0%+6.4%
Q3 2016-1.3%-1.0%+4.7%
Q2 2016+1.4%-0.1%-1.2%
Q1 2016-4.2%
Q4 2015+7.8%
Q3 2015-0.2%
Q2 2015-3.3%
Q2 2014-3.3%
Q1 2014+4.2%
Q4 2014+4.2%
Q1 2015+4.8%
Q3 2014+3.9%
Q4 2013
Q3 2013
Q2 2013
Q1 2013

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