Axalta Coating Systems Ltd. (AXTA) shares surged 7.92% in pre-market trading on Tuesday, following the company's strong fourth-quarter 2024 results that exceeded analyst estimates. The coatings giant also provided an upbeat outlook for fiscal 2025, fueling investor optimism.
For the fourth quarter, Axalta reported record net sales of $1.31 billion, up 1% year-over-year, driven by positive pricing and product mix, as well as contributions from acquisitions. The top line surpassed the consensus estimate of $1.31 billion.
Adjusted EBITDA rose 10% to $275 million, with margins expanding 170 basis points to 21%, reflecting lower costs and benefits from the company's 2024 Transformation Initiative. Adjusted earnings per share jumped 30% to $0.60, beating the consensus estimate of $0.51.
For the full year 2024, Axalta's net sales grew 2% to $5.28 billion, while adjusted EBITDA increased 17% to $1.12 billion. The company cited strong performance in its Refinish and Light Vehicle coatings segments as key growth drivers.
Looking ahead to fiscal 2025, Axalta forecasts net sales in the range of $5.35 billion to $5.4 billion, reflecting flat to modest growth. Adjusted EBITDA is expected between $1.15 billion and $1.175 billion, with adjusted diluted EPS projected at $2.50 to $2.60. The company also anticipates generating free cash flow of around $500 million.
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