Axalta financial year 2024: profit and sales increase
Axalta was able to increase profits and sales in the 2024 financial year despite a difficult market environment. The company achieved record sales of 5.3 billion US dollars and a record net income of 391 million US dollars.
For the full year 2024, Axalta's net sales increased by 2% year-on-year to USD 5.3 billion. Net income improved to $391 million compared to $269 million in 2023, resulting in a net income margin of 7.4%, an increase of 220 basis points year-over-year. The increase in net income was primarily driven by lower variable costs, sales growth including contributions from acquisitions, lower consulting and enterprise resource planning system implementation expenses, and savings from the 2024 Transformation Initiative, partially offset by labor cost inflation and higher restructuring costs. Adjusted net profit improved by USD 144 million to USD 518 million compared to the previous year. Adjusted EBITDA improved to USD 1,116 million, an increase of 17% compared to financial year 2023. The adjusted EBITDA margin improved by 280 basis points to 21.2% compared to the previous year, with both segments expanding. Diluted earnings per share increased by 47% to USD 1.78 compared to USD 1.21 in the same period of the previous year. Adjusted diluted EPS improved 40% to $2.35.
Axalta with record net sales and adjusted EBITDA
Fiscal 2024 cash flow from operating activities was $576 million compared to $575 million in the prior year as earnings growth was largely offset by higher working capital. Free cash flow was $451 million compared to $447 million in 2023, an increase of $4 million. "Axalta's financial results for 2024 were exceptional. We delivered record net sales and Adjusted EBITDA in the fourth quarter and full year in a challenging macroeconomic environment," said Chris Villavarayan, Axalta's CEO and President. "Consistently above-average performance in Refinish and Light Vehicle and excellent execution across the business resulted in an Adjusted EBITDA margin of over 21% as we remain on track to deliver on our A-Plan 2026 commitments."