Axalta Beats Q3 Estimates, Raises Guidance, Wins BMW Deal

Axalta Coating Systems reported Q3 2025 adjusted EPS of $0.67 and net income of $110 million, beating Street estimates while revenue fell about 3% to roughly $1.28–1.29 billion. Management updated 2025 guidance to project net sales above $5.1 billion and signaled confidence in revenue growth for the remainder of the year. The company emphasized margin improvement and accelerating share repurchases after repurchasing $100 million of stock during the quarter. Axalta disclosed a strategic OEM win: an exclusive ColorSystem supply agreement with BMW across 15 European countries and South Africa to diversify revenue beyond North America. Management reiterated a longer-term adjusted EBITDA target of about $1.2 billion by 2026 but warned that near-term upside depends on a recovery in core coatings demand and that prolonged volume weakness remains a risk. The quarter marked the fourth straight quarter of modest EPS beats, while analysts show Q4 adjusted EPS expectations near $0.60, reflecting continued market caution.