Axalta Coating Systems Ltd. (AXTA) saw its shares surge 5.79% during pre-market trading on Tuesday, following the release of its fourth quarter and full year 2025 financial results.
The company reported record full year adjusted EBITDA of USD 1.128 billion with a margin of 22.0%, alongside strong free cash flow of USD 466 million. For the fourth quarter, adjusted diluted earnings per share came in at USD 0.59. Investors also reacted positively to the company's strategic direction, which includes a definitive agreement to merge with AkzoNobel in an all-stock merger of equals, announced in November 2025, aiming to create a premier global coatings company.
The combination of robust financial performance, including debt reduction and shareholder returns through share repurchases, alongside the transformative merger announcement, appears to have driven significant investor optimism in the pre-market session.