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Axalta Coating Systems Ltd. (AXTA-3.26%) has filed its Form 10-K for the fiscal year ended December 31, 2024 filing.
The filing details Axalta's financial performance, highlighting a 1.8% increase in net sales to $5.276 billion compared to $5.184 billion in the previous year. This growth was driven by higher sales volumes, contributions from acquisitions, and improved average selling prices.
Net income for the year was reported at $391 million, up from $269 million in 2023. The company also noted a decrease in cost of sales, attributed to lower variable input costs and favorable currency translation impacts.
Axalta's Performance Coatings segment saw a 1.4% increase in net sales, with contributions from acquisitions and improved price/mix. The Mobility Coatings segment experienced a 2.5% increase in net sales, driven by higher volumes in the light vehicle end-market.
The filing outlines Axalta's 2024 Transformation Initiative, aimed at simplifying the organizational structure and reducing costs. The initiative is expected to result in annualized savings of approximately $75 million once fully executed.
Axalta completed the acquisition of CoverFlexx in July 2024 for $290 million, enhancing its position in the refinish economy customer segment. The company also completed three other acquisitions in Europe during the year.
Total borrowings at the end of 2024 were $3.456 billion, with a net decrease from the previous year due to prepayments and refinancing activities. The company maintains a revolving credit facility with $778 million available at year-end.
Axalta's effective tax rate for 2024 was 21.1%, with deferred tax benefits recognized due to the enactment of the Bermuda Corporate Income Tax Act 2023.
The company continues to manage risks associated with foreign currency exchange rates, interest rates, and commodity prices through hedging activities.
Axalta's annual report also discusses potential risks and uncertainties, including economic conditions, competition, and regulatory compliance, which could impact future performance.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Axalta Coating Systems Ltd. annual 10-K report dated February 13, 2025. To report an error, please email earnings@qz.com.