Refinish net sales $546 million, up 5% year-over-year.
Axalta Coating Systems Ltd. (NYSE: AXTA) announced its second quarter 2024 net sales increased 4.4% year-over-year to a quarterly record of $1.35 billion with positive contributions from all four end markets.
Net income increased by $52 million year-over-year to $113 million. Adjusted net income improved by $50 million year-over-year to $127 million driven by variable cost deflation and net sales growth. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was $291 million was a quarterly record, compared to $227 million in the prior year period.
“Axalta continues to execute exceptionally well,” said Chris Villavarayan, CEO and President of Axalta. “I am proud of our global team’s dedication and effort in achieving the highest quarterly net sales and Adjusted EBITDA in the company’s history. As One Axalta, we remain committed to driving accelerated performance and unlocking the robust earnings potential of our business. With the solid second quarter performance and better visibility into the second half of the year, we are raising our full year 2024 Adjusted EBITDA, Adjusted Diluted EPS and Free Cash Flow guidance.”
In the second quarter, the Performance Coatings segment that includes refinish had net sales were $887 million, up 4% compared to the prior year period. Refinish net sales grew 5% year-over-year to $546 million driven by volume growth including contribution from the André Koch acquisition and new body shop wins. Industrial net sales increased 2% year-over-year to $341 million driven by modest volume improvement.
Performance Coatings generated second quarter adjusted EBITDA of $223 million compared to $181 million in the prior year period, with EBITDA margins of 25.0% and 21.2%, respectively. The increase in segment adjusted EBITDA and segment Adjusted EBITDA margin were driven by variable cost deflation, volume growth and cost reduction actions.