Axalta (AXTA.N): Strong Body Shop Wins and Improving Fundamentals in Refinish; Mobility Improvements in 2H

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Axalta (AXTA.N): Strong Body Shop Wins and Improving Fundamentals in Refinish; Mobility Improvements in 2H

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28 Jul 2026 16:14:55 ET │ 16 pages

Axalta (AXTA.N)

Strong Body Shop Wins and Improving Fundamentals in Refinish;

Mobility Improvements in 2H

CITI'S TAKE Buy

Price (28 Jul 26 16:00) US$35.44 Our takeaways from the call: 1) Management continued to highlight

Target price US$44.00 improving refinish fundamentals, particularly as destocking headwinds

abate during the quarter. The company has added ~2,700 net new body Expected share price return 24.2%

shop wins YTD, already exceeding the historical annual average of roughly Expected dividend yield 0.0%

2,500 wins. Combined with ongoing M&A activity and expansion of the Expected total return 24.2%

distribution network, these factors should support 2H growth despite Market Cap US$7,585M

management's assumption that collision claims will remain down at an

MSD rate. 2) AXTA is expecting price/mix in the overall Mobility business

to inflect positively in 3Q, and raw material indexation adjustments

(impacts ~50% of Mobility) to contribute more meaningfully in 4Q. 3) The Patrick CunninghamAC

company projects LV volumes to be up slightly in 2H driven by wins in +1-212-816-6684

Europe and Latin America. In addition, Class 8 builds normalizing in 2H as patrick.cunningham@citi.com

well as continued momentum in CTS (now ~50% of CV) should also Rachel Lee

support Mobility volumes in the back half. +1-212-816-4559

rachel.lee@citi.com

Stock Action — Our FY26E EBITDA moves up ~1% mostly on the strong Alexander Yi

performance in 2Q and upgraded Mobility margins outlook in 2H on CV strength, +1-212-816-4220

partially offset by tempered back-half volumes in Industrial and modestly lower FX alexander.yi@citi.com

expectations.