Axalta Coating Systems Aims for Robust Financial Gains by 2025

Published 20 hours agoAXTA

Axalta Coating Systems Aims for Robust Financial Gains by 2025

Axalta Coating Systems Ltd. has unveiled its optimistic financial targets for 2025, with plans to achieve an Adjusted EBITDA margin exceeding 21%. The company has set a goal for its Adjusted EBITDA to reach between $1.150 billion and $1.175 billion, alongside an Adjusted Diluted EPS ranging from $2.50 to $2.60, as reported by roic.ai.

To support these financial ambitions, Axalta has been actively expanding its market presence and streamlining operations. Notable efforts include securing approximately 2,800 new body shop wins in its Refinish segment and completing the acquisition of the CoverFlexx Group to bolster its economy segment footprint. Additionally, despite a downturn in global auto bills, the company attained a 5% net sales growth in the light vehicle segment and improved margins in Industrial Coatings, with promising growth anticipated by 2025.

In an effort to mitigate labor inflation and enhance operational efficiency, Axalta is implementing a transformation initiative forecasted to deliver $30 million to $40 million in additional benefits by 2025. The company has already seen $20 million in savings in 2024, doubling its initial $10 million target. These initiatives are focused on cutting variable costs, optimizing supply chains, and investing in capital improvements to maintain productivity gains.

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