NYSE$AXTA
Axalta Coating Systems · Q2 2022 earnings
Q2 2022 earnings · · Investor relations
Briefing
Axalta's Q2 2022 performance was driven by record pricing and strong volume growth.
Axalta Coating Systems reported a 9.6% increase in net sales year-over-year, driven by record pricing and solid volume growth. Mobility Coatings delivered significant above-market sales performance. However, income from operations decreased due to variable cost inflation, foreign currency headwinds, and elevated expenses.
- Net sales increased 9.6% year-over-year (14.5% ex FX) led by record pricing and solid volume growth; Mobility Coatings delivered significant above-market sales performance.
- Realized record 10.0% price-mix growth with double-digit year-over-year gains in Mobility and Industrial Coatings.
- Volume increased 2.7% driven by 8.4% growth in North America and 14.8% in Latin America with strong contributions from both segments.
- Income from operations of $103.6 million versus $190.4 million in Q2 2021; Adjusted EBIT of $150.6 million compared with $173.4 million in Q2 2021 despite $23 million of headwinds associated with the Russia-Ukraine conflict, China lockdowns, and FX.
Headline financials
Revenue & EPS history
Axalta · Revenue · Quarterly
$1.23B
Revenue by segment
Axalta · $1.31B total across 2 segments · Q3 2023
- Performance Coatings$856M—65.4%
- Mobility Coatings$453M—34.6%
Forward guidance
Axalta anticipates net sales to increase by 15-17% in Q3 2022, including a negative 6% foreign currency impact and a positive 2% acquisition benefit. Adjusted EBIT is expected to be $140-165 million, and adjusted diluted EPS is projected to be $0.37-0.45.
Tailwinds
- Net Sales: ~+15-17%, including, ~(6)% foreign currency impact and ~+2% acquisition benefit; pricing and volume expected to be up high single-digits year-over-year
- Adjusted EBIT: $140-165 million
- Adjusted Diluted EPS: $0.37-0.45; including a $0.05 year-over-year headwind from foreign currency and the Russia-Ukraine conflict
- Raw material inflation in the high teens versus Q3 2021
- Likelihood that company will be able to recover the majority of the cumulative price-cost gap by year-end
Headwinds
- Foreign currency impact of ~(6)%
- Adjusted Diluted EPS includes a $0.05 year-over-year headwind from foreign currency and the Russia-Ukraine conflict
- Interest Expense: ~$35 million
- Adjusted Tax Rate: ~22%-23%
- Raw material inflation in the high teens versus Q3 2021
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 Q2 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
| Quarter | Report date | Reaction (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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