Q2 2024 Axalta Coating Systems Ltd Earnings Call Transcript
Key Points
- Axalta Coating Systems Ltd (AXTA) achieved the highest recorded quarterly net sales and adjusted EBITDA in the company's history.
- Adjusted EBITDA margins increased to 21.5%, with net leverage declining for the eighth consecutive quarter.
- Net sales increased by 4% to $1.35 billion, with volumes up 5% year over year across all four end markets.
- Refinish segment had its 14th straight quarter of improved top-line performance, with net sales growing 5% year over year.
- The company completed the acquisition of Cover Flex Group, enhancing its capabilities in the economy segment of the automotive refinish market.
- Global industrial demand remains relatively muted, impacting the industrial segment despite some margin improvements.
- Specialty pigments continue to experience tight supply and long lead times, affecting the company's procurement process.
- The light vehicle market is projected to decline by 3% to 4% year over year in the second half of 2024, with most declines expected in Europe.
- Commercial vehicle net sales are anticipated to decline by 20% in the second half of 2024 due to forecasted lower Class 8 production in North America.
- The company faces pricing pressure in Europe, particularly in the light vehicle segment, which could impact margins.
Ladies and gentlemen, thank you for standing by, and welcome to theAxalta Coating Systems Q2 2024 earnings call participants will be in a listen only mode. A question and answer session will follow the presentation by management. Today's call is being recorded and a replay will be available through August eighth. Those listening after today's call. Should please note that the information provided in the recording will not be updated and therefore may no longer be current. I will now turn the call over to Colleen Roubik, Vice President of Investor Relations. Please go ahead.
Thank you and good morning. This is Coleen Lubeck, Vice President of Investor Relations. I'm excited to join you today for my first earnings call. We appreciate your continued interest and welcome you to our second quarter 2024 financial results conference call. Joining me today are Chris Ryan, CEO and President, and Carl Anderson, Senior Vice President and Chief Financial Officer.
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