Axalta Q3 2026: EPS Misses Expectations as Europe Drags Performance Coatings
As seen on the 24/7 Wall St. homepage on October 29, 2026.
Europe's Refinish weakness hit Axalta's Performance Coatings segment, where adjusted EBITDA margin slipped to 23.0% from 25.5%, missing expectations. Record Mobility Coatings sales cushioned the quarter, but not enough to keep the first EPS miss of the year off the board ahead of the AkzoNobel merger.
Continue ReadingShow less
Axalta's adjusted diluted EPS of $0.63 missed expectations, the company's first earnings miss of the year, with net sales also falling short of estimates.
The damage was concentrated in Performance Coatings, where softer European Refinish volumes and higher raw material and freight costs pushed segment adjusted EBITDA margin down to 23.0%.
Mobility Coatings was the clearest bright spot, delivering record quarterly net sales on stronger North American Class 8 production, but the gains were not large enough to offset the Performance Coatings shortfall.
Sponsored
Merger costs added to the pressure: $19 million in AkzoNobel-related expenses pulled GAAP diluted EPS below the adjusted figure. Shareholders of both companies approved the combination on August 5, 2026, so these costs will persist until the deal closes.
Full-year guidance calls for adjusted diluted EPS of approximately $2.45, with Q4 net sales roughly flat year over year, leaving investors to weigh a soft near-term setup against the AkzoNobel combination thesis.
Mentioned: AXTA