| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 73 | 21.0x | 17.8x | Top tier | |
Growth | 32 | -0.9% | 7.1% | Bottom tier | |
Quality | 71 | 9.0% | 4.5% | Top tier | |
Safety | 55 | 2.8x | 2.6x | Around median | |
Capital Return | 86 | — | 2.12% | Top tier | |
Momentum | 68 | 21.0% | 2.9% | Top tier | |
Sentiment | 82 | 11 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Axalta Coating Systems Ltd. operates in coating solutions through two main segments: Performance Coatings and Mobility Coatings. The Performance Coatings segment includes the refinish business for automotive body repair shops and the industrial business, while the Mobility Coatings segment serves light vehicles, commercial vehicles, and specialized transportation applications such as military vehicles, ambulances, fire trucks, and recreational vehicles. The refinish business relies on a network of approximately 95 thousand customers, 90% of which are small businesses, and the value of Axalta’s products for these customers comes from reducing labor time and increasing shop productivity.
In Q2 of fiscal year 2026, net sales increased 3% year over year to just under $1.35 billion, the highest quarterly level in two years. Refinish sales reached $545 million, up 6%, and industrial sales reached $327 million, up 2%, while Mobility Coatings posted record quarterly sales of $474 million, up 1%. Within Mobility Coatings, commercial vehicle sales increased 7%, while light vehicle sales declined slightly.
Net income was $89 million in Q2 of fiscal year 2026, down $21 million, primarily due to $31 million in additional costs associated with the proposed merger with AkzoNobel. In contrast, adjusted net income increased 10% to $153 million, and adjusted earnings before interest, taxes, depreciation, and amortization reached a record $305 million with a margin of 22.7%, up 30 basis points. Adjusted diluted earnings per share increased 13% to $0.72, while operating cash flow was $152 million and free cash flow was $107 million.
The average analyst price target is $34.60, within a relatively wide range of $30 to $39, while the upper end is close to the 52-week range high of $38.61, compared with a low of $24.937. The analyst consensus is Neutral, and no confirmed price-to-earnings ratio is available in the data, so the valuation assessment relies more heavily on the breadth of the target range and Axalta’s ability to sustain a 22.7% margin and realize the AkzoNobel merger savings, balanced against demand, raw material, and regulatory execution risks.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Net sales reached just under $1.35 billion, up 3% year over year, marking the highest quarterly performance in two years. Adjusted earnings before interest, taxes, depreciation, and amortization reached a record $305 million with a margin of 22.7%, while adjusted diluted earnings per share increased 13% to $0.72. Net income was $89 million, down $21 million, due to $31 million in additional costs associated with the proposed merger with AkzoNobel. The company also generated $152 million in operating cash flow and $107 million in free cash flow.
The refinish business represents nearly half of Axalta and generated sales of $545 million in Q2 of fiscal year 2026, up 6%. The company serves approximately 95 thousand customers in this business, 90% of which are small businesses that benefit from products that improve work speed and shop efficiency. Axalta added approximately 2,700 net shops through July 2026, including locations associated with multi-shop operators in North America and 80 shops within BMW’s business in Japan. Management expects volumes to remain approximately stable in Q3 and then increase in Q4 of fiscal year 2026 as these wins begin to affect results.
Automated analysis for informational purposes only — not investment advice.
Axalta ended June 2026 with net leverage of 2.2 times, the lowest level in the company’s history, and targets exiting fiscal year 2026 below 2 times. The company reduced total debt by $80 million during Q2 and $135 million since the beginning of the year, while interest expense declined 16% during the first half. Free cash flow improved 6% to $107 million in the quarter, despite including transaction-related charges. The cash conversion cycle also improved by approximately 10%, and inventory days declined by eight days year over year.
Axalta is targeting the closing of a proposed merger of equals with AkzoNobel in late 2026 or early 2027, with regulatory approval processes continuing according to the July 28, 2026 call. Management expects approximately $600 million in annual cost savings, with approximately 90% realized during the first three years after closing. It also sees opportunities for cross-selling, technology sharing, and expanded customer access, particularly in the economy segment of the refinish market, where AkzoNobel has a strong presence. In contrast, additional transaction-related costs reached $31 million in Q2 of fiscal year 2026, and realizing the savings remains dependent on completing the transaction and successfully executing the integration.
Management maintained its fiscal year 2026 guidance for net sales, adjusted earnings before interest, taxes, depreciation, and amortization, adjusted earnings per share, and free cash flow. For Q3 of fiscal year 2026, it expects low-single-digit net sales growth and adjusted earnings before interest, taxes, depreciation, and amortization of between $295 million and $305 million. It also expects adjusted diluted earnings per share of approximately $0.70, up 4% year over year. Maintaining the guidance reflects caution regarding Iran, tariffs, and geopolitical tensions, in addition to raw material inflation and the diminishing positive foreign exchange impact in the second half.
The Mobility Coatings segment posted record sales of $474 million in Q2 of fiscal year 2026, up 1%, and achieved an adjusted earnings before interest, taxes, depreciation, and amortization margin of 18.4%. Commercial vehicle sales increased 7% due to volume growth across all four regions and improved Class 8 truck production in North America. The commercial transportation solutions business, which includes applications such as military vehicles, ambulances, fire trucks, and recreational vehicles, now represents approximately 50% of the commercial vehicle business and grew 5% annually. Light vehicle sales declined slightly, but management expects second-half volume support from new business wins in Europe and Latin America.
