International. Axalta posted net sales of $1.3 billion in the fourth quarter, up 1% year-on-year, despite the negative impact of currency translation. Net income reached $137 million, representing an increase of 85% compared to the same period in 2023, with a net profit margin of 10.5%.
Adjusted EBITDA for the quarter reached $275 million, an increase of 10% year-over-year, with a margin of 21.0%, an improvement of 170 basis points.
Diluted earnings per share increased 91% year-over-year to $0.63, while adjusted diluted earnings per share grew 30% to $0.60.
"Axalta's financial results for 2024 were exceptional. We achieved record net sales and adjusted EBITDA for the fourth quarter and full year in a complex macroeconomic environment," said Chris Villavarayan, CEO and president of Axalta.
In the Performance Coatings segment, net sales reached $843 million, down 1% year-on-year, due to the reduction in volumes in Europe and the impact of currency translation, despite the contribution of the acquisition of CoverFlexx.
In the Mobility Coatings segment, net sales increased 4% year-on-year to $468 million, driven by rising light-duty vehicle volumes in China and Latin America.
Fiscal Year 2024 Results
Net income increased 45% to $391 million, with a net profit margin of 7.4%.
Adjusted EBITDA for the year amounted to $1,116 million, with a margin of 21.2%, an improvement of 280 basis points year-over-year. Diluted earnings per share increased 47% to $1.78, while adjusted diluted earnings per share grew 40% to $2.35.
The company reported that annual free cash flow was $451 million, up slightly from $447 million a year earlier. In addition, Axalta prioritized reducing its gross debt by liquidating the remaining $105 million balance of the credit facility used to finance the acquisition of CoverFlexx.
"Consistent superior performance in Refinish and Light Vehicles, coupled with excellent execution across the company, resulted in an adjusted EBITDA margin in excess of 21%, as we continue to make progress towards meeting our commitments set out in Plan A 2026," concluded Villavarayan.
