Axalta delivers record Q1 cash flow as AkzoNobel merger progresses

Axalta Coating Systems (NYSE:AXTA) reported first-quarter 2026 results that surpassed its own financial guidance, highlighted by record cash generation and steady margins despite a slight dip in year-over-year revenue.

The company posted net sales of $1.25 billion, a 1% decline compared to the prior year, as unfavorable volumes in North America were partially offset by positive price-mix and a 5.7% foreign exchange tailwind.

Profitability remained a central theme, with Axalta achieving a net income of $91 million and an adjusted EBITDA of $259 million.

The adjusted EBITDA margin of 20.6% marked the company’s ninth consecutive quarter above the 20% threshold.

Adjusted diluted earnings per share (EPS) came in at $0.56, beating consensus estimates of $0.50, as the company effectively managed variable costs and interest expenses, which declined by 14% year-over-year.

The quarter was defined by milestone cash flow performance.

Axalta reported a first-quarter record for cash provided by operating activities at $68 million, while free cash flow hit an all-time Q1 record of $21 million.

Strategically, Axalta remains locked on its definitive agreement to combine with AkzoNobel in an all-stock merger of equals.

The transaction, which will create a global coatings titan with an enterprise value of approximately $25 billion, is currently progressing through regulatory workstreams.

Management confirmed the merger is on track for a planned completion between late 2026 and early 2027.