Axalta, a leading coatings maker, has reported a 14% increase in earnings before interest and taxes (EBIT) for the second quarter of 2026. The improvement in profitability has sparked a rise in the company's shares, which climbed by 5.8% in early trading.
The earnings beat expectations, with analysts forecasting a 10% increase in EBIT. The company's performance is seen as a positive sign ahead of a crucial vote on its proposed merger with PPG Industries. The US-based conglomerate has offered to acquire Axalta in a deal worth around £4.8 billion.
Axalta's CEO, Robert Bryant, said the company's results demonstrate its ability to 'deliver strong financial performance' and 'drive growth'. He added that the proposed merger will create a 'global leader' in the coatings industry.
The merger, which is subject to shareholder approval, is seen as a strategic move by PPG Industries to expand its presence in the coatings market. If the deal is successful, it will create a combined entity with annual revenues of around £12 billion.
Axalta's shares rose to £44.50 in early trading, valuing the company at around £7.2 billion. The performance of the company's shares is closely watched by investors, particularly those with a stake in the FTSE 100 index.
The proposed merger has been welcomed by analysts, who see it as a positive development for the coatings industry. However, some shareholders have expressed concerns about the deal, citing the potential impact on the company's independence and the risks associated with the integration of the two businesses.