Axalta Coating Systems Ltd.
For the period ended Jun 30, 2026. Filed Jul 29, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Jul 29, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-04-30.
0001628280-26-028698
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-29.
0001628280-26-050466
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 140 previous paragraphs and 216 current paragraphs.
93 unchanged; 32 reworded; 68 added; 11 removed; 4 previous and 23 current paragraphs rearranged.
Tables are not compared: 14 previous and 14 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (68)
Current report
•Performance Coatings: Net sales increased 1.0% for the six months ended June 30, 2026 compared with the six months ended June 30, 2025. The increased net sales were driven by favorable foreign currency translation of 3.8% driven by fluctuations of the Euro and Mexican Peso, in each case compared to the U.S. Dollar, furthered by contributions of 1.4% from the Recent Acquisitions. The increased net sales were partially offset by lower sales volumes of 4.1% and unfavorable average selling prices and product mix of 0.1%.
Current report
n Favorable average selling prices and product mix in Performance Coatings
Current report
n Unfavorable impacts of currency translation of 2.6% driven by fluctuations of the Chinese Yuan, Mexican Peso, Brazilian Real and Euro, in each case compared to the U.S. Dollar
Current report
n Less effective coverage of fixed costs as a result of lower sales volumes
Current report
n Favorable average selling prices and product mix in Performance Coatings
Current report
n Unfavorable impacts of currency translation of 4.0% driven by fluctuations of the Euro, Mexican Peso, Chinese Yuan and Brazilian Real, in each case compared to the U.S. Dollar
Current report
n Increased freight costs
Current report
n Less effective coverage of fixed costs as a result of lower sales volumes
Current report
n Increased freight costs
Current report
Selling, general and administrative expenses increased primarily due to the following:
Current report
n Decrease of $2 million in bad debt expense
Current report
Selling, general and administrative expenses increased primarily due to the following:
Current report
n Unfavorable impacts of currency translation of 3.9% due primarily to fluctuations of the Euro, Chinese Yuan and Mexican Peso, in each case compared to the U.S. Dollar
Current report
n Decrease of $4 million in bad debt expense
Current report
n Increase of $4 million driven by an impairment on a previously closed manufacturing site
Current report
n Increase of $2 million driven by an impairment on a previously closed manufacturing site
Current report
Partially offset by:
Current report
Three and six months ended June 30, 2026 compared to the three and six months ended June 30, 2025
Current report
n Unfavorable impacts of currency translation of 1.5% due primarily to fluctuations of the Euro compared to the U.S. Dollar
Current report
n Unfavorable impacts of currency translation of 2.9% due primarily to fluctuations of the Euro compared to the U.S. Dollar
Current report
Three and six months ended June 30, 2026 compared to the three and six months ended June 30, 2025
Current report
Other (income) expense, net
Current report
The change in other (income) expense, net was primarily due to the following:
Current report
n $8 million related to government incentive income in China recognized in the current year period
Current report
n Favorable impact of foreign exchange gains of $1 million compared to the prior year period
Current report
Partially offset by:
Current report
n $1 million debt extinguishment and refinancing-related costs associated with prepayments on our 2029 Dollar Term Loans
Current report
The change in other (income) expense, net was primarily due to the following:
Current report
n $8 million related to government incentive income in China recognized in the current year period
Current report
n Favorable impact of foreign exchange gains of $2 million compared to the prior year period
Current report
Partially offset by:
Current report
n $1 million debt extinguishment and refinancing-related costs associated with prepayments on our 2029 Dollar Term Loans
Current report
(3) Non-deductible expenses and interest includes tax impacts of $7 million and $12 million for the three and six months ended June 30, 2026, respectively, related to merger and acquisition-related costs, driven by the proposed Merger with AkzoNobel
Current report
(5) Foreign taxes includes Pillar Two top-up taxes primarily attributable to Swiss operations of $2 million, $4 million, $2 million and $3 million for the three and six months ended June 30, 2026 and June 30, 2025, respectively.
Current report
n Favorable average selling prices and product mix in both end-markets
Current report
Partially offset by:
Current report
n Lower sales volumes due primarily to unfavorable macro trends in North America
Current report
n Favorable average selling prices and product mix in both end-markets
Current report
n Lower variable input costs
Current report
Partially offset by:
Showing the first 40 of 68 passages. Open the source sections for the rest.
Removed paragraphs (11)
Previous report
•Performance Coatings: Net sales decreased 2.4% for the three months ended March 31, 2026 compared with the three months ended March 31, 2025. The decreased net sales were driven by lower sales volumes of 7.9%, furthered by lower average selling prices and unfavorable product mix of 1.8%, partially offset by contributions of 1.6% from the Recent Acquisitions and favorable foreign currency translation of 5.7% driven by fluctuations of the Euro and Mexican Peso, in each case compared to the U.S. Dollar.
Previous report
Net sales decreased primarily due to the following:
Previous report
n Unfavorable impacts of currency translation of 5.3% driven by fluctuations of the Euro, Mexican Peso, Chinese Yuan and Brazilian Real, in each case compared to the U.S. Dollar
Previous report
Selling, general and administrative expenses decreased primarily due to the following:
Previous report
n Unfavorable impacts of currency translation of 4.2% due primarily to fluctuations of the Euro, compared to the U.S. Dollar
Previous report
Other expense, net
Previous report
Net sales decreased primarily due to the following:
Previous report
n Favorable impacts of currency translation due primarily to fluctuations of the Euro, Mexican Peso and Swiss Franc, in each case, compared with the U.S. Dollar
Previous report
n Lower operating expenses, inclusive of contributions from cost savings initiatives
Previous report
Three months ended March 31, 2026
Previous report
Three months ended March 31, 2025
Reworded paragraphs (32)
Previous wording
Many statements made in the following discussion and analysis of our financial condition and results of operations and elsewhere in this Quarterly Report on Form 10-Q that are not statements of historical fact, including statements about our beliefs and expectations, are “forward-looking statements” within the meaning of federal securities laws and should be evaluated as such. Forward-looking statements include information concerning possible or assumed future results of operations, including descriptions of our business plan, strategies and capital structure. These statements often include words such as “expect,” “expects,” “expected,” “believe,” “intended,” “estimate,” “estimated,” “designed to,” “likely,” “could,” “would,” “may,” “will,” “future” and “plans,” and the negative of these words or other comparable or similar terminology. We base these forward-looking statements or projections on our current expectations, plans and assumptions that we have made in light of our experience in the industry, as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances and at such time. As you read and consider this Quarterly Report on Form 10-Q, you should understand that these statements are not guarantees of performance or results. The forward-looking statements and projections are subject to and involve risks and uncertainties, including, but not limited to, economic, competitive, governmental, including related to any new or existing tariffs imposed by the U.S. and any retaliatory actions from other countries, geopolitical (including the current conflict in the Middle East and related effects on commodity prices) and technological factors outside of our control, as well as risks related to the proposed Merger with AkzoNobel (including our ability to consummate the Merger and realize the anticipated benefits thereof), execution of, and assumptions underlying, our tariff mitigation strategies, capital allocation strategy and future share repurchases (if any), our previously-announced global transformation initiative (the “2024 Transformation Initiative”), and our previously-announced three-year 2024-2026 strategy, that may cause our business, industry, strategy, financing activities or actual results to differ materially. More information on potential factors that could affect our financial results is available in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2025 as well as “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025 and in other documents that we have filed with, or furnished to, the U.S. Securities and Exchange Commission (the “SEC”), and you should not place undue reliance on these forward-looking statements or projections. Although we believe that these for…
Excerpt shortened here; the source contains the full paragraph.
Current wording
Many statements made in the following discussion and analysis of our financial condition and results of operations and elsewhere in this Quarterly Report on Form 10-Q that are not statements of historical fact, including statements about our beliefs and expectations, are “forward-looking statements” within the meaning of federal securities laws and should be evaluated as such. Forward-looking statements include information concerning possible or assumed future results of operations, including descriptions of our business plan, strategies and capital structure. These statements often include words such as “expect,” “expects,” “expected,” “believe,” “intended,” “estimated,” “designed to,” “likely,” “could,” “would,” “may,” “will” and “future” and the negative of these words or other comparable or similar terminology. We base these forward-looking statements or projections on our current expectations, plans and assumptions that we have made in light of our experience in the industry, as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances and at such time. As you read and consider this Quarterly Report on Form 10-Q, you should understand that these statements are not guarantees of performance or results. The forward-looking statements and projections are subject to and involve risks and uncertainties, including, but not limited to, economic, competitive, governmental, including related to any new or existing tariffs imposed by the U.S. and any retaliatory actions from other countries, geopolitical (including the current conflict in the Middle East and related effects on commodity prices) and technological factors outside of our control, as well as risks related to the proposed Merger with AkzoNobel (including our ability to consummate the Merger and realize the anticipated benefits thereof), execution of, and assumptions underlying, our tariff mitigation strategies, capital allocation strategy and future share repurchases (if any), our previously-announced global transformation initiative (the “2024 Transformation Initiative”), and our previously-announced three-year 2024-2026 strategy, that may cause our business, industry, strategy, financing activities or actual results to differ materially. More information on potential factors that could affect our financial results is available in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2025 as well as “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025 and in other documents that we have filed with, or furnished to, the U.S. Securities and Exchange Commission (the “SEC”), and you should not place undue reliance on these forward-looking statements or projections. Although we believe that these forward-looking statement…
Excerpt shortened here; the source contains the full paragraph.
Previous wording
We are a leading global manufacturer, marketer and distributor of high-performance coatings systems and products. We have over a 150-year heritage in the coatings industry and are known for manufacturing high-quality products with well-recognized brands supported by market-leading technology and customer service. Our diverse global footprint of 42 manufacturing facilities, four technology centers, 50 customer training centers and approximately 12,300 team members allows us to meet the needs of customers in over 140 countries. We serve our customer base through an extensive sales force and technical support organization, as well as through over 5,000 independent, locally based distributors.
Current wording
We are a leading global manufacturer, marketer and distributor of high-performance coatings systems and products. We have over a 150-year heritage in the coatings industry and are known for manufacturing high-quality products with well-recognized brands supported by market-leading technology and customer service. Our diverse global footprint of 42 manufacturing facilities, four technology centers, 52 customer training centers and approximately 12,200 team members allows us to meet the needs of customers in over 140 countries. We serve our customer base through an extensive sales force and technical support organization, as well as through over 5,000 independent, locally based distributors.
Previous wording
Our net sales decreased 0.6%, including a 5.7% benefit from favorable foreign currency translation, for the three months ended March 31, 2026 compared with the three months ended March 31, 2025. The decreased net sales were driven by lower sales volumes of 6.2%, furthered by lower average selling prices and unfavorable product mix of 1.1%, partially offset by contributions of 1.0% from acquisitions completed during 2025 and 2026 in the Performance Coatings segment (the “Recent Acquisitions”). The following trends impacted our segment net sales performance for the three months ended March 31, 2026:
Current wording
Our net sales increased 1.3%, driven by a 4.2% benefit from favorable foreign currency translation, for the six months ended June 30, 2026 compared with the six months ended June 30, 2025. The increased net sales were furthered by contributions of 0.9% from acquisitions completed during 2025 and 2026 in the Performance Coatings segment (the “Recent Acquisitions”), partially offset by lower sales volumes of 3.5% and unfavorable average selling prices and product mix of 0.3%. The following trends impacted our segment net sales performance for the six months ended June 30, 2026:
Previous wording
•Mobility Coatings: Net sales increased 2.8% for the three months ended March 31, 2026 compared with the three months ended March 31, 2025. The increased net sales were driven by favorable foreign currency translation of 5.8% driven by fluctuations of the Euro, Mexican Peso, Chinese Yuan and Brazilian Real, in each case compared to the U.S. Dollar, and furthered by higher average selling prices and favorable product mix of 0.1%, partially offset by lower sales volumes of 3.1%.
Current wording
•Mobility Coatings: Net sales increased 1.9% for the six months ended June 30, 2026 compared with the six months ended June 30, 2025. The increased net sales were driven by favorable foreign currency translation of 4.9% driven by fluctuations of the Chinese Yuan, Brazilian Real, Euro and Mexican Peso, in each case compared to the U.S. Dollar, partially offset by lower sales volumes of 2.3% and unfavorable average selling prices and product mix of 0.7%.
Previous wording
Our business serves four end-markets globally with net sales for the three months ended March 31, 2026 and 2025, as follows:
Current wording
Our business serves four end-markets globally with net sales for the three and six months ended June 30, 2026 and 2025, as follows:
Previous wording
During November 2025, we entered into a Merger Agreement with AkzoNobel, providing for the combination of the Company and AkzoNobel in an all-stock merger. See Note 1 to the condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for additional information.
Current wording
During November 2025, we entered into a Merger Agreement with AkzoNobel (as amended on May 27, 2026 and on July 23, 2026), providing for the combination of the Company and AkzoNobel in an all-stock merger. See Note 1 to the condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for additional information.
Previous wording
The conflict in the Middle East within Iran has increased the level of economic and political uncertainty globally. While our operations in the Middle East region do not constitute a material portion of our business, a significant escalation or expansion of economic disruption, countries subject to sanctions or the conflict's current scope, or a prolonged continuation of the conflict’s current scope, could have a material adverse effect on our results of operations, financial condition and cash flows. We are actively monitoring the broader global economic impact on commodities from the current conflict, including the price and supply of raw materials, transportation costs and utilities, among others.
Current wording
The conflict in the Middle East involving Iran has increased the level of economic and political uncertainty globally. While our operations in the Middle East region do not constitute a material portion of our business, a significant escalation or expansion of economic disruption, countries subject to sanctions or the conflict’s current scope, or a prolonged continuation of the conflict’s current scope, could have a material adverse effect on our results of operations, financial condition and cash flows. We are actively monitoring the broader global economic impact on commodities from the current conflict, including the price and supply of raw materials, transportation costs and utilities, among others.
Previous wording
During the three months ended March 31, 2026, we prepaid $50 million of the outstanding principal amount of the 2029 Dollar Term Loans. See Note 15 to the unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for additional information.
Current wording
During the six months ended June 30, 2026, we prepaid $125 million of the outstanding principal amount of the 2029 Dollar Term Loans. See Note 15 to the unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for additional information.
Previous wording
n Favorable impacts of currency translation driven by fluctuations of the Euro, Mexican Peso, Chinese Yuan and Brazilian Real, in each case compared to the U.S. Dollar
Current wording
n Favorable impacts of currency translation driven by fluctuations of the Chinese Yuan, Mexican Peso, Euro and Brazilian Real, in each case compared to the U.S. Dollar
Previous wording
n Lower average selling prices and unfavorable product mix primarily in Performance Coatings
Current wording
n Unfavorable average selling prices and product mix primarily in Mobility Coatings
Previous wording
n Lower average selling prices and unfavorable product mix primarily in Performance Coatings
Current wording
n Unfavorable average selling prices and product mix primarily in Mobility Coatings
Previous wording
n Unfavorable impacts of currency translation of 5.4% due primarily to fluctuations of the Euro, Mexican Peso and Chinese Yuan, in each case compared to the U.S. Dollar
Current wording
n Unfavorable impacts of currency translation of 2.4% due primarily to fluctuations of the Euro and Chinese Yuan, in each case compared to the U.S. Dollar
Previous wording
n Increase of $20 million in merger and acquisition-related costs, primarily driven by the Merger with AkzoNobel
Current wording
n Increase of $31 million in merger and acquisition-related costs, primarily driven by the proposed Merger with AkzoNobel
Previous wording
n Decrease of $7 million in termination benefits and other employee-related costs primarily as a result of significantly higher costs associated with the 2024 Transformation Initiative in the prior year period
Current wording
n Decrease of $14 million in termination benefits and other employee-related costs primarily as a result of significantly higher costs associated with the 2024 Transformation Initiative in the prior year period
Previous wording
n Increased amortization of $1 million associated with assets acquired in the past 12 months
Current wording
n Assets acquired in the past 12 months contributed $1 million
Previous wording
(1) For the three months ended March 31, 2026, earnings generated in jurisdictions where the statutory rate is different from the Bermuda rate is primarily related to earnings in Brazil, Germany, and the United States. For the three months ended March 31, 2025, earnings generated in jurisdictions where the statutory rate is different from the Bermuda statutory tax rate is primarily related to earnings in the United States and Switzerland.
Current wording
(1) For the three and six months ended June 30, 2026, earnings generated in jurisdictions where the statutory rate is different from the Bermuda rate is primarily related to earnings in Brazil, Germany, and the United States. For the three and six months ended June 30, 2025, earnings generated in jurisdictions where the statutory rate is different from the Bermuda statutory tax rate is primarily related to earnings in Germany, Switzerland, and the United States.
Previous wording
(2) Changes in valuation allowance primarily relate to operations in Luxembourg, the Netherlands, and the United Kingdom.
Current wording
(2) Changes in valuation allowance primarily relate to operations in Luxembourg, the Netherlands, and the United Kingdom. During the three months ended June 30, 2026, the Company released $25 million of valuation allowance which is fully offset by changes in unrecognized tax benefits.
Previous wording
(3) During the three months ended March 31, 2026, the Company recorded a tax benefit of $15 million related to the release of unrecognized tax benefits resulting from ongoing discussions with tax authorities in jurisdictions where we have open audits.
Current wording
(4) The Company recorded tax of $27 million and $12 million for the three and six months ended June 30, 2026, respectively, related to unrecognized tax benefit adjustments resulting from ongoing discussions with tax authorities in jurisdictions where we have open audits. The increase to unrecognized tax benefits for the three and six months ended June 30, 2026 is partially offset by changes in valuation allowance.
Previous wording
n Lower average selling prices and product mix in the refinish end-market
Current wording
n Unfavorable average selling prices and product mix in the refinish end-market
Previous wording
n Lower average selling prices and product mix in the refinish end-market
Current wording
n Unfavorable average selling prices and product mix in the refinish end-market
Previous wording
At March 31, 2026, availability under the Revolving Credit Facility was $770 million, net of $30 million of letters of credit outstanding. All such availability may be utilized without violating any covenants under the Credit Agreement or the indentures governing our senior notes (the “Senior Notes”). Our remaining available borrowing capacity under other lines of credit in certain non-U.S. jurisdictions totaled $63 million at March 31, 2026.
Current wording
At June 30, 2026, availability under the Revolving Credit Facility was $768 million, net of $32 million of letters of credit outstanding. All such availability may be utilized without violating any covenants under the Credit Agreement or the indentures governing our senior notes (the “Senior Notes”). Our remaining available borrowing capacity under other lines of credit in certain non-U.S. jurisdictions totaled $20 million at June 30, 2026.
Previous wording
We, or our affiliates, at any time and from time to time, may purchase shares of our common stock or the Senior Notes, and may prepay our 2029 Dollar Term Loans or other indebtedness. Any such purchases of our common stock or Senior Notes may be made through the open market or privately negotiated transactions with third parties or pursuant to one or more redemptions, tender or exchange offers or otherwise, upon such terms and at such prices, as well as with such consideration, as we, or any of our affiliates, may determine. Our 2027 Dollar Senior Notes have a principal amount of $500 million, bear interest at 4.750% and are due on June 15, 2027. Considering current market interest rates and the proposed merger with AkzoNobel, we may intentionally not repay or refinance these Senior Notes prior to June 15, 2026 which would require these 2027 Dollar Senior Notes to be classified as current liabilities on our condensed consolidated balance sheets beginning with the period ending June 30, 2026. Regardless of this decision, we expect to repay or refinance the 2027 Dollar Senior Notes prior to or on their maturity date.
Current wording
We, or our affiliates, at any time and from time to time, may purchase shares of our common stock or the Senior Notes, and may prepay our 2029 Dollar Term Loans or other indebtedness. Any such purchases of our common stock or Senior Notes may be made through the open market or privately negotiated transactions with third parties or pursuant to one or more redemptions, tender or exchange offers or otherwise, upon such terms and at such prices, as well as with such consideration, as we, or any of our affiliates, may determine. Our 2027 Dollar Senior Notes have a principal amount of $500 million, bear interest at 4.750% and are due on June 15, 2027. We have intentionally not repaid or refinanced the 2027 Dollar Senior Notes as of June 30, 2026; therefore, the related balances are classified as current liabilities on our condensed consolidated balance sheets at June 30, 2026. We expect to repay or refinance the 2027 Dollar Senior Notes prior to or on their maturity date.
Previous wording
Net cash provided by operating activities for the three months ended March 31, 2025 was $26 million. Net income before deducting depreciation, amortization and other non-cash items generated cash of $188 million. This was partially offset by changes in operating assets and liabilities of $162 million, for which the most significant drivers were decreases in other accrued liabilities of $106 million, as well as increases in prepaid expenses and other assets, inventories and accounts and notes receivable of $59 million, $37 million and $18 million, respectively. These outflows were driven primarily by seasonal cash payments for variable incentive compensation, payments of BIPs and rebates, increased production and timing of collections from customers. These outflows were partially offset by increases in accounts payable of $66 million driven by the timing of payments to vendors.
Current wording
Net cash provided by operating activities for the six months ended June 30, 2026 was $220 million. Net income before deducting depreciation, amortization and other non-cash items generated cash of $368 million. This was partially offset by changes in operating assets and liabilities of $148 million, for which the most significant drivers were increases in accounts and notes receivable, prepaid expenses and other assets and inventories of $109 million, $58 million and $53 million, respectively, as well as a decrease in other accrued liabilities of $40 million. These outflows were driven primarily by timing of collections from customers, seasonal cash payments for variable incentive compensation, payments of BIPs and rebates and seasonal inventory builds. These outflows were partially offset by increases in accounts payable of $139 million driven by timing of payments to vendors.
Previous wording
Net cash used for investing activities for the three months ended March 31, 2026 was $53 million. The primary uses were for purchases of property, plant and equipment of $50 million and business acquisitions of $8 million, partially offset by $4 million of payments received on customer loans and $3 million from interest proceeds from swaps designated as net investment hedges, which are discussed further in Note 16 to the unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.
Current wording
Net cash used for investing activities for the six months ended June 30, 2026 was $97 million. The primary uses were for purchases of property, plant and equipment of $98 million and business acquisitions of $8 million, partially offset by $6 million from interest proceeds from swaps designated as net investment hedges and $5 million from payments received on customer loans. Details of the interest proceeds from swaps designated as net investment hedges are discussed further in Note 16 to the unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.
Previous wording
Net cash used for financing activities for the three months ended March 31, 2026 was $61 million. The primary use was for prepayments of $50 million of the outstanding principal amount of the 2029 Dollar Term Loans, cash outflows of $6 million primarily due to stock-based compensation withholding tax settlements and contractual debt repayments of $5 million.
Current wording
Net cash used for financing activities for the six months ended June 30, 2026 was $143 million. The primary use was for prepayments of $125 million of the outstanding principal amount of the 2029 Dollar Term Loans, contractual debt repayments of $10 million and cash outflows of $6 million primarily due to stock-based compensation withholding tax settlements.
Previous wording
Currency exchange impacts on cash for the three months ended March 31, 2026 were unfavorable by $3 million, which was driven primarily by fluctuations of the Euro and Indian Rupee, partially offset by fluctuations in the Brazilian Real, in each case compared to the U.S. Dollar.
Current wording
Currency exchange impacts on cash for the six months ended June 30, 2026 were unfavorable by $4 million, which was driven primarily by fluctuations of the Euro and Indian Rupee, partially offset by fluctuations in the Chinese Yuan and Brazilian Real, in each case compared to the U.S. Dollar.
Previous wording
Net cash provided by operating activities for the three months ended March 31, 2026 was $68 million. Net income before deducting depreciation, amortization and other non-cash items generated cash of $182 million. This was partially offset by changes in operating assets and liabilities of $114 million, for which the most significant drivers were decreases in other accrued liabilities of $96 million as well as increases in accounts and notes receivable, prepaid expenses and other assets and inventories of $32 million, $27 million and $20 million, respectively. These outflows were driven primarily by seasonal cash payments for variable incentive compensation, payments of BIPs and rebates, timing of collections from customers and decreased sales volumes. These outflows were partially offset by increases in accounts payable of $90 million driven by the timing of payments to vendors.
Current wording
Net cash provided by operating activities for the six months ended June 30, 2025 was $168 million. Net income before deducting depreciation, amortization and other non-cash items generated cash of $409 million. This was partially offset by net uses of working capital of $241 million, for which the most significant drivers were decreases in other accrued liabilities of $111 million as well as increases in prepaid expenses and other assets, inventories and accounts and notes receivable of $89 million, $56 million and $47 million, respectively. These outflows were driven primarily by seasonal cash payments for variable incentive compensation, payments of BIPs and rebates, increased production and timing of collections from customers. These outflows were partially offset by increases in accounts payable of $65 million driven by timing of payments to vendors.
Previous wording
Net cash used for investing activities for the three months ended March 31, 2025 was $44 million. The primary uses were for purchases of property, plant and equipment of $43 million and a business acquisition of $6 million, partially offset by proceeds of $3 million from interest proceeds from swaps designated as net investment hedges.
Current wording
Net cash used for investing activities for the six months ended June 30, 2025 was $83 million. The primary uses were for purchases of property, plant and equipment of $88 million and a business acquisition of $6 million, partially offset by proceeds of $7 million from interest proceeds from swaps designated as net investment hedges.
Previous wording
Net cash used for financing activities for the three months ended March 31, 2025 was $8 million. The primary use was for contractual debt repayments of $5 million.
Current wording
Net cash used for financing activities for the six months ended June 30, 2025 was $78 million. The primary use was for purchases of our common stock of $65 million and contractual debt repayments of $10 million.
Previous wording
Currency exchange impacts on cash for the three months ended March 31, 2025 were favorable by $8 million, which was driven primarily by the fluctuations of the Euro and Brazilian Real, in each case compared to the U.S. Dollar.
Current wording
Currency exchange impacts on cash for the six months ended June 30, 2025 were favorable by $25 million, which was driven primarily by fluctuations of the Euro, Brazilian Real and Mexican Peso, in each case compared to the U.S. Dollar.
Previous wording
We had cash and cash equivalents at March 31, 2026 and December 31, 2025 of $608 million and $657 million, respectively. Of these balances, $489 million and $555 million were maintained in non-U.S. jurisdictions as of March 31, 2026 and December 31, 2025, respectively. We believe at this time our organizational structure allows us the necessary flexibility to move funds throughout our subsidiaries to meet our operational and working capital needs.
Current wording
We had cash and cash equivalents at June 30, 2026 and December 31, 2025 of $633 million and $657 million, respectively. Of these balances, $544 million and $555 million were maintained in non-U.S. jurisdictions as of June 30, 2026 and December 31, 2025, respectively. We believe at this time our organizational structure allows us the necessary flexibility to move funds throughout our subsidiaries to meet our operational and working capital needs.
Previous wording
We believe that we continue to maintain sufficient liquidity to meet our cash requirements, including our debt service obligations as well as our working capital needs. Availability under the Revolving Credit Facility was $770 million at both March 31, 2026 and December 31, 2025, all of which may be borrowed by us without violating any covenants under the Credit Agreement or the indentures governing the Senior Notes.
Current wording
We believe that we continue to maintain sufficient liquidity to meet our cash requirements, including our debt service obligations as well as our working capital needs. Availability under the Revolving Credit Facility was $768 million and $770 million at June 30, 2026 and December 31, 2025, respectively, all of which may be borrowed by us without violating any covenants under the Credit Agreement or the indentures governing the Senior Notes.
Rearranged current paragraphs (23)
Current report — wording carried from elsewhere
Net sales increased primarily due to the following:
Current report — wording carried from elsewhere
n Lower sales volumes driven primarily by North America Performance Coatings
Current report — wording carried from elsewhere
Cost of sales increased primarily due to the following:
Current report — wording carried from elsewhere
n Lower sales volumes driven primarily by North America Performance Coatings
Current report — wording carried from elsewhere
Cost of sales as a percentage of net sales increased primarily due to the following:
Current report — wording carried from elsewhere
n Contributions from the Recent Acquisitions
Current report — wording carried from elsewhere
n Decrease of $7 million in termination benefits and other employee-related costs
Current report — wording carried from elsewhere
Other operating charges increased primarily due to the following:
Current report — wording carried from elsewhere
n Increase of $52 million in merger and acquisition-related costs, primarily driven by the proposed Merger with AkzoNobel
Current report — wording carried from elsewhere
Amortization of acquired intangibles increased primarily due to the following:
Current report — wording carried from elsewhere
n Assets acquired in the past 12 months contributed $2 million
Current report — wording carried from elsewhere
Net sales increased primarily due to the following:
Current report — wording carried from elsewhere
n Favorable impacts of currency translation due primarily to fluctuations of the Euro, Mexican Peso and Chinese Yuan, in each case compared to the U.S. Dollar
Current report — wording carried from elsewhere
n Contributions from the Recent Acquisitions
Current report — wording carried from elsewhere
n Favorable impacts of currency translation due primarily to fluctuations of the Euro compared to the U.S. Dollar
Current report — wording carried from elsewhere
n Contributions from the Recent Acquisitions
Current report — wording carried from elsewhere
Net sales increased primarily due to the following:
Current report — wording carried from elsewhere
n Contributions from the Recent Acquisitions
Current report — wording carried from elsewhere
n Lower operating expenses, inclusive of contributions from savings initiatives
Current report — wording carried from elsewhere
n Favorable impacts of currency translation due primarily to fluctuations of the Euro and Mexican Peso, in each case compared to the U.S. Dollar
Current report — wording carried from elsewhere
n Contributions from the Recent Acquisitions
Current report — wording carried from elsewhere
Net sales increased primarily due to the following:
Current report — wording carried from elsewhere
Net sales increased primarily due to the following:
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
n Other expense, net remained generally consistent and impacts of currency translation were immaterial when compared to the prior year period.
Previous report — wording carried elsewhere
n Lower sales volumes across both end-markets
Previous report — wording carried elsewhere
n Favorable impacts of currency translation driven by fluctuations of the Euro, Mexican Peso, Chinese Yuan and Brazilian Real, in each case compared to the U.S. Dollar
Previous report — wording carried elsewhere
n Lower sales volumes across both end-markets