en.Wedoany.com Reported - Axalta Coating Systems Ltd. reported its second-quarter 2026 financial results, with net sales of $1.35 billion for the period, up 3% year-over-year. Meanwhile, the company is advancing its proposed merger with AkzoNobel and preparing to put the matter to a shareholder vote.
Adjusted EBITDA for the quarter reached $305 million, setting a quarterly record with a 5% year-over-year increase; the adjusted EBITDA margin expanded by 30 basis points to 22.7%. Adjusted diluted earnings per share also hit a quarterly high of $0.72, up 13% from $0.64 in the same period last year. Cash generated from operating activities rose to $152 million, an increase of 7%; free cash flow grew 6% to $107 million, despite additional costs incurred related to the proposed merger.
Axalta's Chief Executive Officer and President, Chris Villavarayan, stated that the second quarter's record adjusted EBITDA and adjusted diluted EPS, along with margin expansion and strong free cash flow, reflect the profitability of the company's business model. Net income for the quarter was $89 million, down $21 million from the same period last year; diluted EPS decreased from $0.50 to $0.41. Axalta explained that the decline was primarily due to $31 million in merger-related costs recorded during the period. Excluding merger costs and other adjustments, adjusted net income was $153 million, up 10% year-over-year.
By business segment, the Performance Coatings division generated sales of $872 million in the second quarter, up 4% year-over-year, as favorable foreign currency translation, acquisition contributions, and positive price mix offset a slight decline in volumes. Within the segment, Refinish business revenue grew 6% to $545 million, driven by acquisitions, pricing, and currency effects; Industrial business revenue increased 2% to $327 million, with volume growth in Europe and Asia and favorable price mix offsetting lower volumes in North America. The segment's adjusted EBITDA grew 10% to $218 million, with the adjusted EBITDA margin expanding 130 basis points to 25.1%.
The Mobility Coatings segment posted quarterly sales of $474 million, up 1% year-over-year, setting a quarterly record for the division. Within the segment, Light Vehicle sales declined slightly due to lower organic volumes, partially offset by favorable foreign currency translation; Commercial Vehicle sales grew 7%, with volume increases across all four regions. The segment's adjusted EBITDA was $87 million, with an adjusted EBITDA margin of 18.4%. Axalta noted that strong commercial vehicle volumes were offset by a favorable one-time item recognized in the second quarter of 2025 that did not recur.
Looking ahead, the company maintained its full-year guidance. Axalta expects third-quarter adjusted EBITDA to range between $295 million and $305 million, with adjusted diluted EPS of approximately $0.70. For the full year 2026, the company forecasts low single-digit sales growth, adjusted EBITDA between $1.14 billion and $1.17 billion, adjusted diluted EPS between $2.55 and $2.70, and free cash flow expected to exceed $500 million. As of the end of the quarter, the company's total net leverage ratio stood at 2.2 times, which Axalta noted is its lowest level in history.
Axalta shareholders are scheduled to hold a special general meeting on August 5 to vote on the proposed merger of equals with AkzoNobel. Chris Villavarayan expressed the company's expectation that the meeting will approve this attractive merger proposal.
