Axalta Coating Systems Ltd. · NYSE:AXTA
Axalta Coating Systems — Q4 2024 Earnings Presentation
24 slides from Axalta Coating Systems's earnings presentation, Feb 4, 2025
Slide 1: Fourth Quarter and Full Year 2024 Financial Results
February 4, 2025 Axalta Coating Systems Fourth Quarter and Full Year 2024 Financial Results
Slide 2: Legal Notices
Legal Notices Forward-Looking Statements This presentation and the oral remarks made in connection herewith may contain certain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 regarding Axalta and its subsidiaries including, but not limited
Slide 3: Record Fourth Quarter Net Sales and Adjusted EBITDA
Record Fourth Quarter Net Sales and Adjusted EBITDA Fourth Quarter Financial Highlights ■ Record fourth quarter net sales $275M 21.0% $1.3B Adjusted Adjusted ■ Record fourth quarter Adjusted EBITDA Net Sales EBITDA EBITDA Margin ■ +10% YoY ■ +170 bps margin expansion led by favorable price-mix and l
Slide 4: Accelerated A Plan Performance in 2024
Accelerated A Plan Performance in 2024 Optimized Portfolio Winning Culture Operational Excellence Growth Strategy • Five percent Light Vehicle net sales growth; • Cultural transformation driving efficiency • Transformation initiative yielded savings won $60-$70M of new business in LATAM of $20M in 2
Slide 5: Established Company Records in 2024
Established Company Records in 2024 Net Sales Adjusted EBITDA and Margin Adjusted Diluted EPS ($ in billions) ($ in millions) ($ per share) 2% 17% 40% 21.2% 18.4% Setting the Foundation for Long-Term Value Creation 5
Slide 6: Fourth Quarter Consolidated Results
Fourth Quarter Consolidated Results Financial Results Net Sales Variance ($ in millions) ($ in millions, except per share data) Q4 2024 Q4 2023 Change (1.0)% 1.9% (1.2)% 1.3% 1.0% Net Sales 1,311 1,297 1% Net Income 137 74 85% Adjusted EBITDA 275 251 10% % Margin 21.0% 19.3% 170 bps Diluted EPS 0.63
Slide 7: Fourth Quarter Performance Coatings Results
Fourth Quarter Performance Coatings Results Net Sales Net Sales Variance ($ in millions) ($ in millions) Q4 2024 Q4 2023 % Change (2.8)% 1.0% (0.8)% 1.9% (0.7)% Refinish 545 537 2% Industrial 298 311 (5%) Net Sales 843 849 (1)% Organic Net Sales Adjusted EBITDA and Margin Refinish: (LSD%) ($ in mill
Slide 8: Fourth Quarter Mobility Coatings Results
Fourth Quarter Mobility Coatings Results Net Sales Net Sales Variance ($ in millions) ($ in millions) Q4 2024 Q4 2023 % Change 2.3% 4.0% (2.1)% 4.2% Light Vehicle 369 339 9% Commercial Vehicle 99 109 (10%) Net Sales 468 448 4% Organic Net Sales Adjusted EBITDA and Margin LV: +LDD% ($ in millions) CV
Slide 9: Full Year Consolidated Results
Full Year Consolidated Results Financial Results Net Sales Variance ($ in millions) ($ in millions, except per share data) FY 2024 FY 2023 Change 1.1% 0.4% (0.4)% 0.7% 1.8% Net Sales 5,276 5,184 2% Net Income 391 269 45% Adjusted EBITDA 1,116 951 17% % Margin 21.2% 18.4% 280 bps Diluted EPS 1.78 1.2
Slide 10: Balanced Capital Allocation
Balanced Capital Allocation Full Year Highlights Total Net Leverage Ratio Full Year Capital Allocation 2.5x is at the top of A plan target range ~$630M capital deployed ■ Repriced term loan reducing interest rate spread by an aggregate 75 basis points ■ Increased revolver capacity to $800M and exten
Slide 11: 2025 Guidance
2025 Guidance Net Sales Adjusted EBITDA (in millions, Change YoY) (in millions) Q1 2025 FY 2025 Q1 2025 FY 2025 Flat $5,350 -$5,400 ~$265 $1,150 - $1,175 Adjusted Diluted EPS Free Cash Flow ($ per share) (in millions) Q1 2025 FY 2025 FY 2025 ~$0.54 $2.50 - $2.60 ~$500 Axalta does not provide a recon
Slide 12: Excellent Progress toward 2026 A Plan Targets
Excellent Progress toward 2026 A Plan Targets 2026 A Plan 2025E1 Targets Net Sales Growth $170 - $220M2 >$500M2 Adjusted EBITDA Margin 21.5% - 21.8% >21% Net Leverage Ratio 2.0x to 2.5x 2.0x to 2.5x Return On Invested Capital 14.5% - 15.0% ~15% Adjusted Diluted EPS Growth ~50% - 55%2 >60%2 (1) Estim
Slide 13: Appendix
Appendix 13
Slide 14: Full Year 2025 Modeling Assumptions
Full Year 2025 Modeling Assumptions Axalta does not provide a reconciliation for non-GAAP estimates for tax rate, as adjusted, on a forward-looking basis because the information necessary to calculate a meaningful or accurate estimation of reconciling items is not available without unreasonable effo
Slide 15: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in millions) FY 2024 FY 2023 Q4 2024 Q4 2023 Net income $ 391 $ 269 $ 137 $ 74 Interest expense, net 205 213 47 55 Provision for income taxes 105 86 2 28 Depreciation and amortization 280 276 73 69 EBITDA $ 981 $ 844 $ 259 $ 226 A Debt extinguishment and refinancing
Slide 16: Adjusted EBITDA Reconciliation (cont'd)
Adjusted EBITDA Reconciliation (cont'd) A Represents expenses and associated changes to estimates related to the prepayment, restructuring, and refinancing of our indebtedness, which are not considered indicative of our ongoing operating performance. B Represents expenses and associated changes to e
Slide 17: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation ($ in millions) FY 2024 FY 2023 Q4 2024 Q4 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Net income $ 391 $ 269 $ 137 $ 74 $ 41 $ 44 $ 63 $ 44 Less: Net income attributable to noncontrolling interests — 2 — 1 (1) — 1 — Net income attributable to controlling interests 391 26
Slide 18: Adjusted Net Income Reconciliation (cont'd)
Adjusted Net Income Reconciliation (cont'd) A Represents expenses and associated changes to estimates related to the prepayment, restructuring, and refinancing of our indebtedness, which are not considered indicative of our ongoing operating performance. B Represents expenses and associated changes
Slide 19: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation ($ in millions) Q4 2024 Q3 2024 Q2 2024 Q1 2024 FY 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 YTD 2023 Cash provided by (used for) operating activities $ 234 $ 194 $ 114 $ 34 $ 576 $ 286 $ 210 $ 131 $ (52) $ 575 Purchase of property, plant and equipment (62) (33) (23) (22) (1
Slide 20: Adjusted EBIT Reconciliation
Adjusted EBIT Reconciliation ($ in millions) FY 2024 FY 2023 Q4 2024 Q4 2023 Income from operations $ 706 $ 588 $ 187 $ 162 Other expense, net 5 20 1 5 Total $ 701 $ 568 $ 186 $ 157 A Debt extinguishment and refinancing-related costs 5 10 2 3 B Termination benefits and other employee-related costs 6
Slide 21: Adjusted EBIT Reconciliation (cont'd)
Adjusted EBIT Reconciliation (cont'd) A Represents expenses and associated changes to estimates related to the prepayment, restructuring, and refinancing of our indebtedness, which are not considered indicative of our ongoing operating performance. B Represents expenses and associated changes to est
Slide 22: Capitalization Table
Capitalization Table ($ in millions) Interest @ 12/31/2024 Maturity Cash and Cash Equivalents $ 593 Debt: Revolver ($800 million capacity) Variable — 2029 First Lien Term Loan (USD) Variable 1,683 2029 Total Senior Secured Debt $ 1,683 Senior Unsecured Notes (USD) Fixed 497 2027 Senior Unsecured Not
Slide 23: Return on Invested Capital
Return on Invested Capital ($ in millions) 2024 2023 Adjusted EBIT 883 707 Adjusted Tax Rate (1) 23.5 % 24.1 % NOPAT (2) 675 537 Total debt, opening balance 3,504 3,704 Axalta’s shareholders’ equity, opening balance 1,727 1,454 Less: Cash and Cash Equivalents, opening balance 700 645 Invested capita
Slide 24: Thank you!
Thank you! Investor Relations Contact Colleen.Lubic@axalta.com 24
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