NYSE$AXTA

Axalta Coating Systems · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Axalta's Q4 2023 financial performance was marked by increased net sales, net income, and adjusted EBITDA, driven by volume growth, pricing actions, and cost management.

Axalta's Q4 2023 results showed a 4.9% increase in net sales to $1.3 billion, a 68% increase in net income to $74 million, and a rise in Adjusted EBITDA to $251 million. The company benefited from pricing actions, positive mix impacts, and variable cost deflation. Axalta also reduced its net leverage ratio to 2.9x, the lowest in company history.

  • Net sales increased by 4.9% year-over-year, reaching $1.3 billion.
  • Net income rose by $30 million year-over-year, totaling $74 million.
  • Adjusted EBITDA increased by $43 million year-over-year, reaching $251 million.
  • Free cash flow totaled $254 million.

Headline financials

Total Revenue

$1.3B

Previous: $1.24B+4.9%
EPS (adj)

$0.43

Previous: $0.38+13.2%
Capital Expenditures

-$32.6M

Previous: $43.4M-175.1%
Free Cash Flow

$254M

Previous: $206M+23.3%
Net Income

$73.6M

Previous: $43.6M+68.8%
Operating Income

$161M

Previous: $110M+46.8%
Gross Profit

$424M

Previous: $372M+14.0%
R&D Expense

$17.8M

No prior period
Stock-Based Comp

$6.9M

Previous: $8.2M-15.9%

Revenue & EPS history

Axalta · Revenue · Quarterly

$1.3B

Q4 2023+4.9%vs Q4 2022
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

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

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

Forward guidance

Axalta provided its outlook for the first quarter and full year 2024, including projections for net sales growth, Adjusted EBITDA, Adjusted Diluted EPS, and Free Cash Flow.

Tailwinds

  • Net Sales: Flat Year-Over-Year
  • Adjusted EBITDA: ~$240 million
  • Adjusted Diluted EPS: ~$0.40
  • Adjusted EBITDA: $1,010 - $1,050 million
  • Adjusted Diluted EPS: $1.80 - $1.95

Headwinds

  • Free Cash Flow: $400 - $450
  • D&A (step-up D&A): ~$280 ($50)
  • Tax Rate, As Adjusted: ~25%
  • Diluted Shares Outstanding: ~222
  • Interest Expense: ~$215

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 Q4 2023

Historical avgQ4 2023

+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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