Financial Guidance & Market Commentary
Financial Guidance & Market Commentary
Axalta does not provide a reconciliation for non-GAAP estimates for constant currency net sales growth, Adjusted EBIT, Adjusted EBITDA, Adjusted Diluted EPS and income tax rate, as adjusted,
on a forward-looking basis because the information necessary to calculate a meaningful or accurate estimation of reconciling items is not available without unreasonable effort. See "Non-GAAP
Financial Measures" for more information.
(in millions, except per share data & %s)
Q1 2023 Outlook
FY 2023 Assumptions
Projection
(in millions, except per share data & %s)
Projection
5% -9%
83.0 -84.0
$190
Net Sales growth versus Q1 2022
FX impact on Sales
Adjusted EBIT (Adjusted EBITDA)
Adjusted Diluted EPS
D&A (step-up D&A)
Tax Rate, As Adjusted
Diluted Shares
Interest Expense
(2% -3%)
$126 $146 ($185 - $205)
$0.26 - $0.33
$70 ($16)
~ 25%
~222
$50
Global LV Builds
Capex
D&A (step-up D&A)
Tax Rate, As Adjusted
Diluted Shares
Interest Expense
$280 ($50)
~ 25%
~ 222
$215 - $225
Q1 2023 Commentary
Performance Coatings: Anticipate typical seasonal Refinish volume decline to
result in lower Performance Coatings EBIT QoQ despite better Industrial
contribution
Mobility Coatings: Expect sequential EBIT improvement given continued
outpacing of market builds and margin recovery
Raw Materials: Stabilizing raw material environment with pressure anticipated
to continue in specialties, labor and energy; expect high-single-digit % YoY raw
material headwind in Q1 2023
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FY 2023 Commentary
Performance Coatings: Expect momentum to continue in Refinish after record
2022 profitability; potentially softer Industrial markets to be balanced by
contribution from price-cost normalization and share gains
Mobility Coatings: Anticipate steady progress throughout 2023 vs. Q4 EBIT
run-rate
Raw Materials: Expect modest deflation in elevated upstream commodities to
help offset persistent headwinds from labor and energy inflation
Overall Profitability & FCF: Expect meaningful YoY growth given carry over
pricing, Refinish and Mobility market recovery, and stabilizing cost environment
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