Axalta Coating Systems Ltd. (NYSE:AXTA) announced third quarter 2024 net sales increased 0.8% year over year to a third quarter company record of $1.32 billion as contribution from the CoverFlexx acquisition announced earlier this year and volume growth were partially offset by contractual raw material index impacts and mix headwinds.
Net income in the quarter ended September 30 increased by 40% year-over-year to $102 million with net income margins of 7.7%. Adjusted net income improved by $31 million year-over-year to $129 million driven by lower variable costs and a reduction in operating expenses. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 12% to $291 million compared to $261 million in the prior year period. Adjusted EBITDA margin expanded by 220 basis points to 22.1%. Diluted earnings per share increased by 39% to $0.46 compared to $0.33 in the prior year period. Adjusted diluted earnings per share improved by 31% to $0.59.
Performance Coatings third quarter 2024 net sales were $877 million, up 2% compared to the prior year period. Refinish net sales grew 5% year-over-year to $554 million as contribution from the CoverFlexx acquisition and net new body shop wins were partially offset by mix headwinds and lower body shop activity. Industrial net sales decreased by 1% year over year to $323 million as positive pricing was more than offset by lower volumes.
Performance Coatings generated third quarter Adjusted EBITDA of $221 million compared to $200 million in the prior year period, with Adjusted EBITDA margins of 25.3% and 23.3%, respectively. The increases in segment Adjusted EBITDA and segment Adjusted EBITDA margin were driven by lower variable costs and a reduction in operating expenses.
Mobility Coatings third quarter 2024 net sales were $443 million, a decrease of 2% from the prior year period. Light Vehicle net sales were flat year-over-year as 5% volume growth was offset by contractual raw material pass-through impacts and a modest foreign exchange translation headwind. Commercial Vehicle net sales decreased by 8% year over year to $103 million led by lower volumes due to an expected decline in Class 8 builds in North America and Latin America. As expected, Mobility Coatings price-mix declined by 3% year over year driven by mix and contractual raw material pass-through impacts.
The Mobility Coatings segment generated Adjusted EBITDA of $70 million in the third quarter compared to $61 million in the prior year period, with margins of 15.7% and 13.4%, respectively. The increases in segment Adjusted EBITDA and segment Adjusted EBITDA margin were driven by lower variable costs, new business wins and lower operating costs.
“Our results in the third quarter were exceptional,” said Chris Villavarayan, CEO and President of Axalta. “I am extremely proud of the commitment and dedication from each of our employees to deliver a record third quarter for the company in net sales and Adjusted EBITDA, despite macroeconomic headwinds in all four end markets. As One Axalta, we are successfully executing on our 2026 A Plan and outperforming against key industry benchmarks as we remain dedicated to unlocking our full earnings potential.”