AXTA - Axalta Coating Systems Ltd. (AXTA) Q1 2024 Earnings Call Transcript
2024-05-01 15:12:03 ET
Axalta Coating Systems Ltd. (AXTA)
Q1 2024 Earnings Conference Call
May 1, 2024 08:00 ET
Company Participants
Chris Evans - Vice President of Investor Relations
Chris Villavarayan - President & Chief Executive Officer
Carl Anderson - Chief Financial Officer
Conference Call Participants
David Huang - Deutsche Bank
Harris Fein - Wolfe Capital
Aleksey Yefremov - KeyBanc Capital Markets
Matthew Krueger - Baird
Mike Harrison - Seaport Research
Rock Hoffman - Bank of America
Michael Sison - Wells Fargo
John Roberts - Mizuho
Kevin McCarthy - Vertical Research Partners
Jeff Zekauskas - JPMorgan
Presentation
Operator
Ladies and gentlemen, thank you for standing by. Welcome to Axalta Coating Systems First Quarter 2024 Earnings Call. [Operator Instructions] Today's call is being recorded and a replay will be available through May 8. Those listening after today's call should please note that the information provided in the recording will be -- will not be updated and therefore, may no longer be current.
I will now turn the call over to Chris Evans. Please, go ahead, sir.
Chris Evans
Thank you and good morning. This is Chris Evans, VP of Investor Relations. We appreciate your continued interest in Axalta and welcome you to our first quarter financial results conference call. Joining me today are Chris Villavarayan, CEO and President; and Carl Anderson, CFO. We released our quarterly financial results this morning and posted a slide presentation to the Investor Relations section of our website at axalta.com which we will be referencing during this call.
Our prepared remarks, slide presentation and our discussion today may contain forward-looking statements reflecting the company's current view of future events and their potential effect on Axalta's operating and financial performance. These statements involve uncertainties and risks and actual results may differ materially from those forward-looking statements. Please note that the company is under no obligation to provide updates to these forward-looking statements. Our remarks and the slide presentation also contain various non-GAAP financial measures. In the appendix of the slide presentation, we've included reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures. For additional information regarding forward-looking statements and non-GAAP financial measures, please refer to our filings with the SEC.
I will now turn the call over to Chris.
Chris Villavarayan
Thank you, Chris and good morning, everyone. I'm proud to report an excellent quarter at Axalta. Overall, net sales were primarily flat while adjusted EBITDA was a record for any first quarter in Axalta's history. Margins are significantly improved and we believe we have more room to grow. Our balance sheet has continued to improve with our net leverage ratio declining for 7 consecutive quarters. I'm very confident with our trajectory this year which has led us to raise fiscal year guidance for adjusted EBITDA, adjusted diluted EPS and free cash flow. Yet, I believe we're just getting started transforming the company and unlocking the tremendous potential of our products, technology and organizational capability.
For the first quarter, net sales increased 1% year-over-year to $1.3 billion, with positive price mix. We remain committed to realizing the full value of our products and services, therefore, we continue to evaluate targeted pricing in select areas of the portfolio. Volume was approximately flat year-over-year with growth in Light Vehicle and Refinish offset by declines in Industrial and Commercial Vehicle given their softer macro environment. Adjusted EBITDA increased 22% year-over-year to $259 million, representing a record first quarter. This quarter ran ahead of guidance due to outstanding execution from the entire global team. Specifically, our commercial teams did a great job of winning new customers by focusing on accretive areas that will support a more profitable product mix and pricing for value....
Axalta Coating Systems Ltd. (AXTA) Q1 2024 Earnings Call Transcript