Q3 2024 Axalta Coating Systems Ltd Earnings Call Transcript
Key Points
- Axalta Coating Systems Ltd (AXTA) achieved a company record for third-quarter net sales and adjusted EBITDA, with net sales increasing to $1.32 billion.
- The company reported its 15th consecutive quarter of net sales growth year-over-year, driven by share gains, mix management, and contributions from recent acquisitions.
- Adjusted EBITDA increased by $30 million year-over-year to a third-quarter company record of $291 million, marking the ninth consecutive quarter of adjusted EBITDA growth.
- Axalta Coating Systems Ltd (AXTA) launched innovative products like Axalta Nimbus and Axalta IRUS Scan, enhancing efficiency and productivity for body shops.
- The company increased its 2024 full-year outlook for adjusted EBITDA, adjusted diluted EPS, and free cash flow, reflecting strong business performance.
- Price mix declined by 1% in the quarter due to anticipated contractual raw material pass-through impacts and an unfavorable mix within refinish.
- Mobility Coatings net sales decreased by 2% year-over-year, with commercial vehicle net sales declining by 8% due to a drop in Class A production in North America and Latin America.
- The macroeconomic environment remains soft, with expected volatility in the auto industry over the next few quarters.
- The company faces challenges in maintaining growth momentum in a competitive market, particularly in the premium segment.
- Axalta Coating Systems Ltd (AXTA) anticipates raw material costs to be similar to Q4 of 2023, with potential inflationary pressures in 2025.
Ladies and Gentlemen, Thank you for standing by. Welcome to Axalta Coating Systems Third Quarter 2024 earnings call. All 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 November 6th. 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 Lubic, Vice President of Investor Relations. Please go ahead.
Thank you and good morning. This is Colleen Lubic, Vice President and Investor Relations. We appreciate your continued interest in Axalta story and welcome you to our third quarter 2024 financial results conference call. Today, our Chief Executive Officer, Chris Villavarayan, our Chief Financial Officer, Carl Anderson, will provide a financial review of third quarter and an update to our 2024 outlook. We
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