$AXTA

Axalta Coating Systems Ltd.

CIK:0001616862|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Net sales	$ 1,346	$ 1,305	$ 2,600	$ 2,567
Cost of goods sold	881	848	1,719	1,677
Selling, general and administrative expenses	213	208	413	410
Other operating charges	42	12	68	26
Research and development expenses	18	20	36	37
Amortization of acquired intangibles	25	24	51	48
Income from operations	167	193	313	369
Interest expense, net	37	45	75	89
Other (income) expense, net	(4)	5	(1)	8
Income before income taxes	134	143	239	272
Provision for income taxes	45	33	59	63
Net income	89	110	180	209
Less: Net income attributable to noncontrolling interests	0	1	1	1
Net income attributable to common shareholders	$ 89	$ 109	$ 179	$ 208
Basic net income per share (in dollars per share)	$ 0.42	$ 0.50	$ 0.84	$ 0.96
Diluted net income per share (in dollars per share)	$ 0.41	$ 0.50	$ 0.84	$ 0.95

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Operating activities:
Net income	$ 180	$ 209
Adjustment to reconcile net income to cash provided by operating activities:
Depreciation and amortization	152	144
Amortization of deferred financing costs and original issue discount	4	4
Deferred income taxes	25	11
Realized and unrealized foreign exchange (gains) losses, net	(5)	29
Stock-based compensation	15	13
Interest income on swaps designated as net investment hedges	(6)	(7)
Other non-cash, net	3	6
Changes in operating assets and liabilities:
Trade accounts and notes receivable	(109)	(47)
Inventories	(53)	(56)
Prepaid expenses and other assets	(58)	(89)
Accounts payable	139	65
Other accrued liabilities	(40)	(111)
Other liabilities	(27)	(3)
Cash provided by operating activities	220	168
Investing activities:
Acquisitions, net of cash acquired	(8)	(6)
Purchase of property, plant and equipment	(98)	(88)
Interest proceeds on swaps designated as net investment hedges	6	7
Proceeds received on loans to customers	5	4
Other investing activities, net	(2)	0
Cash used for investing activities	(97)	(83)
Financing activities:
Payments on long-term borrowings	(135)	(10)
Purchases of common stock	0	(65)
Net cash flows associated with stock-based awards	(6)	(2)
Other financing activities, net	(2)	(1)
Cash used for financing activities	(143)	(78)
(Decrease) increase in cash	(20)	7
Effect of exchange rate changes on cash	(4)	25
Cash at beginning of period	660	596
Cash at end of period	636	628
Cash at end of period reconciliation:
Cash and cash equivalents	633	625
Restricted cash	3	3
Cash at end of period	$ 636	$ 628

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 633	$ 657
Restricted cash	3	3
Accounts and notes receivable, net	1,345	1,229
Inventories	806	756
Prepaid expenses and other current assets	203	170
Total current assets	2,990	2,815
Property, plant and equipment, net	1,300	1,299
Goodwill	1,767	1,795
Identifiable intangibles, net	1,086	1,147
Other assets	556	543
Total assets	7,699	7,599
Current liabilities:
Accounts payable	769	637
Current portion of borrowings	519	20
Other accrued liabilities	662	712
Total current liabilities	1,950	1,369
Long-term borrowings	2,549	3,179
Accrued pensions	228	238
Deferred income taxes	197	171
Other liabilities	206	249
Total liabilities	5,130	5,206
Commitments and contingent liabilities (Note 5)
Shareholders’ equity:
Common shares, $1.00 par, 1,000.0 shares authorized, 255.7 and 255.1 shares issued at June 30, 2026 and December 31, 2025, respectively	256	255
Capital in excess of par	1,629	1,621
Retained earnings	2,234	2,055
Treasury shares, at cost, 41.7 shares at both June 30, 2026 and December 31, 2025	(1,202)	(1,202)
Accumulated other comprehensive loss	(395)	(383)
Total Axalta shareholders’ equity	2,522	2,346
Noncontrolling interests	47	47
Total shareholders’ equity	2,569	2,393
Total liabilities and shareholders’ equity	$ 7,699	$ 7,599