AXTA (Axalta Coating Systems) Operating Income: $705 Mil (TTM As of Mar. 2026)

What is Axalta Coating Systems Operating Income?

Axalta Coating Systems AXTA +2.66% 77 Operating Income is $705 Mil as of Mar. 2026. GuruFocus rates AXTA with a GF Score™ of 77/100 and a GF Value™ of $33.32 (Fairly Valued). The stock has 6 warning signs investors should review.

Axalta Coating Systems's Operating Income for the three months ended in Mar. 2026 was $146 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $705 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Axalta Coating Systems's Operating Income for the three months ended in Mar. 2026 was $146 Mil. Axalta Coating Systems's Revenue for the three months ended in Mar. 2026 was $1,254 Mil. Therefore, Axalta Coating Systems's Operating Margin % for the quarter that ended in Mar. 2026 was 11.64%.

Good Sign:

Axalta Coating Systems Ltd operating margin is expanding. Margin expansion is usually a good sign.

Axalta Coating Systems's 5-Year average Growth Rate for Operating Margin % was 11.60% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Axalta Coating Systems's annualized ROC % for the quarter that ended in Mar. 2026 was 8.84%. Axalta Coating Systems's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 29.04%.

Axalta Coating Systems (NYSE:AXTA) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Axalta Coating Systems's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

	ROC % (Q: Mar. 2026 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2025 )	+	Invested Capital (Q: Mar. 2026 ))	/ count )
=	584 * ( 1 - 13.33% )	/	( (5834	+	5622)	/ 2 )
=	506.1528	/	5728
=	8.84 %

where

	Invested Capital		(Q: Dec. 2025 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	7599	-	1108	-	( 657	-	max(0, 1369	-	2815	+	657	))
=	5834

	Invested Capital		(Q: Mar. 2026 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	7558	-	1328	-	( 608	-	max(0, 1348	-	2827	+	608	))
=	5622

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Axalta Coating Systems's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Mar. 2026 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2025		Q: Mar. 2026
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	572	/	( ( (1411 + max(625, 0))	+	(1293 + max(611, 0)) )	/	2 )
=	572	/	( ( 2036	+	1904 )	/	2 )
=	572	/	1970
=	29.04 %

where Working Capital is:

	Working Capital		(Q: Dec. 2025 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1014	+	756	+	173)	-	(1108	+	0	+	210)
=	625

	Working Capital		(Q: Mar. 2026 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(981	+	770	+	188)	-	(1328	+	0	+	0)
=	611

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Axalta Coating Systems's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as:

Operating Margin %	=	Operating Income (Q: Mar. 2026 )	/	Revenue (Q: Mar. 2026 )
	=	146	/	1254
	=	11.64 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Axalta Coating Systems Operating Income Related Terms

Axalta Coating Systems Operating Income Historical Data

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The historical data trend for Axalta Coating Systems's Operating Income can be seen below:

Axalta Coating Systems Operating Income Chart

Axalta Coating Systems Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

Operating Income

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462.40

423.00

588.00

706.00

735.00

Axalta Coating Systems Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
Operating Income	Get a 7-Day Free Trial															176.00	193.00	204.00	162.00	146.00

77GF Score

Axalta Coating Systems Ltd AXTA

Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.

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Axalta Coating Systems Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $705 Mil.

Frequently Asked Questions Learn more about Operating Income →

What does a Operating Income of $705 Mil mean?

Axalta Coating Systems (AXTA) has a Operating Income of $705 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Axalta Coating Systems and its competitors.

Is Axalta Coating Systems' Operating Income too high?

Axalta Coating Systems' current Operating Income is $705 Mil. Overall, Axalta Coating Systems has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.

How does Axalta Coating Systems' Operating Income compare to NEU and EMN?

Axalta Coating Systems' Operating Income of $705 Mil can be compared against companies in the Chemicals industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good Operating Income for a Chemicals company?

A good Operating Income depends on the Chemicals industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high Operating Income mean?

A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Axalta Coating Systems and its competitors. Axalta Coating Systems's current Operating Income is $705 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Axalta Coating Systems stock overvalued right now?

Based on GuruFocus' analysis, Axalta Coating Systems (AXTA) is currently considered Fairly Valued. The stock's GF Value™ is $33.32, compared to a current price of $35.11 — trading 5.4% above its estimated fair value. The current Operating Income is $705 Mil. Axalta Coating Systems' overall GF Score™ is 77/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is Operating Income calculated?

Operating Income is calculated from a company's financial statements. For Axalta Coating Systems (AXTA), the current Operating Income is $705 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Axalta Coating Systems (AXTA) Overvalued in 2026?

Based on GuruFocus' analysis, Axalta Coating Systems stock appears to be overvalued. The current stock price of $35.11 is trading 5.4% above its estimated GF Value™ of $33.32. GuruFocus considers Axalta Coating Systems to be Fairly Valued.

Key valuation signals for AXTA:

Operating Income: $705 Mil
GF Value™: $33.32 vs. price of $35.11 (5.4% above fair value)
GF Score™: 77/100 with 6 warning signs

No single metric tells the full story. See the AXTA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Axalta Coating Systems Business Description

Industry Basic Materials Chemicals

Comparable Companies NEU EMN PRM BCPC SXT WLK CBT ESI AVNT FUL LIN XPAR:AI SHW ECL APD SHSE:603256 XSWX:GIVN TPE:1303 XSWX:SIKA SHSE:600309

Other Exchanges 0U6C:UK 9AX:Germany

Address 1050 Constitution Avenue, Philadelphia, PA, USA, 19112

Website https://www.axalta.com

Axalta Coating Systems Ltd is a manufacturer, marketer, and distributor of high-performance coatings systems. It operates in two segments: Performance Coatings and Mobility Coatings. The Performance Coatings segment provides liquid and powder coatings solutions to a fragmented and local customer base. Its end markets include refinish and industrial, and the Mobility Coatings segment relates to the provision of coating technologies to original equipment manufacturers of light and commercial vehicles. The majority of its revenue is generated from the Mobility Coatings segment. Geographically, the company generates maximum revenue from the Europe, Middle East and Africa (EMEA) region, followed by North America, Asia Pacific, and Latin America.

77GF Score

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Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$35.11

Price

$33.32

GF Value

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