Axalta Coating Systems Ltd., a global manufacturer, marketer, and distributor of high-performance coatings systems, has recently released its 10-K report. The company operates through two segments, Performance Coatings and Mobility Coatings, offering a wide range of products under various brand names. Axalta Coating Systems serves customers in over 140 countries through a global footprint of 44 manufacturing facilities and approximately 12,800 team members.
In the 10-K report, Axalta Coating Systems highlighted several key business and financial highlights. The company reported a 1.8% increase in net sales for the year ended December 31, 2024, compared to the previous year. This growth was primarily driven by higher volumes, contributions from recent acquisitions, and an increase in average selling price and product mix.
The Performance Coatings segment saw a 1.4% increase in net sales, driven by acquisitions and improvements in average selling price and product mix. In comparison, the Mobility Coatings segment experienced a 2.5% increase in net sales, primarily due to higher sales volumes.
The company also provided a breakdown of net sales by end-markets, revealing growth in the Refinish and Light Vehicle categories, while experiencing declines in the Industrial and Commercial Vehicle categories.
Additionally, Axalta Coating Systems announced its 2024 Transformation Initiative, aimed at simplifying the company's organizational structure to enhance agility and lower costs. The report also highlighted the completion of the CoverFlexx acquisition and the repurchase of 2.8 million shares of common stock for a total consideration of $100 million during the year ended December 31, 2024.
Furthermore, the 10-K report mentioned leadership transition, with the appointment of Tim Bowes as President, Global Industrial Coatings, effective January 27, 2025.
Axalta Coating Systems provided insights into the factors affecting its operating results, including fluctuations in economic activity, changes in product sales prices, competition, and foreign exchange rates. The report also detailed the company's cost of goods sold and selling, general, and administrative expenses, shedding light on the main factors influencing these costs.
As a result of these announcements, the company's shares have moved 1.3% on the market, and are now trading at a price of $37.48. For more information, read the company's full 10-K submission here.
