Axalta Coating Systems has recently released its 10-Q report. Axalta Coating Systems Ltd., through subsidiaries, makes and sells coatings systems in North America, Europe, the Middle East, Africa, the Asia Pacific and Latin America. The company operates in two segments, Performance Coatings and Mobility Coatings, and sells refinish, industrial and OEM coatings, along with liquid and powder products used in applications such as vehicles, building materials, cabinets, wood, flooring and furniture.
For the six months ended June 30, 2026, net sales rose 1.3% to $2.600 billion from $2.567 billion a year earlier. Currency translation added 4.2 percentage points, and acquisitions completed in 2025 and 2026 added 0.9 points, while lower volumes cut 3.5 points and unfavorable price and mix reduced 0.3 points. Performance Coatings sales increased 1.0% to $1.674 billion, with refinish up 1.7% to $1.043 billion and industrial down 0.2% to $631 million; Mobility Coatings sales increased 1.9% to $926 million, with light vehicle up 1.1% to $709 million and commercial vehicle up 4.5% to $217 million.
For the second quarter, net sales increased 3.1% to $1.346 billion from $1.305 billion. Performance Coatings revenue rose 4.3% to $872 million, including refinish sales of $545 million and industrial sales of $327 million, while Mobility Coatings revenue increased 1.0% to $474 million. Currency translation contributed 2.6 points in the quarter, acquisitions added 0.9 points, and price/mix added 0.4 points, offset by a 0.8-point volume decline.
Cost of sales increased 2.5% in the first half to $1.719 billion, lifting that line to 66.1% of net sales from 65.3%. In the quarter, cost of sales rose 3.9% to $881 million, or 65.5% of net sales versus 65.0% a year earlier. The company cited higher freight costs, acquisition contributions and unfavorable currency effects, partly offset by lower variable input costs and lower volumes.
Selling, general and administrative expenses increased 0.7% in the first half to $413 million and 2.4% in the quarter to $213 million. Other operating charges jumped to $68 million in the first half from $26 million a year earlier, and to $42 million in the quarter from $12 million, driven mainly by merger and acquisition-related costs tied to the proposed combination with AkzoNobel. During the six months ended June 30, 2026, Axalta prepaid $125 million of the principal on its 2029 Dollar Term Loans. As a result of these announcements, the company's shares have moved -1.47% on the market, and are now trading at a price of $34.92. Check out the company's full 10-Q submission here.
