Axalta: A Quiet Gamble, Dear Boy

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One gathers Leeward Investments has rather tentatively dipped a toe into the waters surrounding Axalta Coating Systems. A purchase of 323,314 shares, amounting to a perfectly respectable $9.48 million, or so they claim. One wonders if they’ve consulted a reliable astrologer, or merely succumbed to a fit of boredom.

A Spot of Investing, What?

The aforementioned Leeward Investments, in a filing dated February 4th, decided Axalta – a company painting things, if one understands correctly – deserved an additional $9.48 million worth of attention. Their holdings, naturally, increased. A rather predictable outcome, wouldn’t you say? It’s all frightfully straightforward, really.

Further Observations

Axalta now constitutes 1.24% of Leeward’s reportable assets. A charming little sum. Their top holdings, for those keeping score, include LITE ($42.12 million), First Horizon ($39.97 million), EHC ($35.45 million), CLH ($33.99 million), and RRX ($32.63 million). One assumes these are all equally thrilling ventures.

As of February 4th, Axalta shares were languishing at $34.27 – a decline of nearly 10% over the past year. The S&P 500, meanwhile, has been having a positively boisterous time, gaining roughly 14%. One can’t help but feel a smidgen of sympathy for Axalta, though sympathy rarely pays the bills, does it?

A Brief Portrait of the Firm

Axalta, for the uninitiated, manufactures coatings. Apparently, things need coating. They supply automotive, industrial, and commercial clients. A global operation, naturally. They sell to original equipment manufacturers, body shops, and various industrial entities. One pictures a great deal of spraying. Here’s a rather dry accounting of their numbers:

Metric Value
Price (as of February 4, 2026) $34.27
Market capitalization $7.31 billion
Revenue (TTM) $5.17 billion
Net income (TTM) $455.00 million

They boast a diverse customer base, innovative technology, and a robust brand portfolio. One suspects the marketing department is working overtime. It all sounds terribly efficient, doesn’t it? And yet…

The Significance of This Little Transaction

This Leeward investment, you see, is rather curious. It suggests someone believes Axalta is quietly doing the right things, despite the dismal share performance. It’s not a ‘momentum’ play, naturally. It’s a margin and cash flow story, hiding in plain sight. How dreadfully unglamorous.

Last quarter, Axalta managed $1.3 billion in net sales and a record $294 million in adjusted EBITDA, pushing margins to 22.8%. Net income climbed to $110 million, and adjusted diluted EPS reached $0.67. All perfectly respectable numbers, one supposes. They even spent $100 million on share repurchases, with plans for another $250 million. A futile gesture, perhaps, but one can admire the optimism.

And yet, the stock remains down nearly 10% over the past year. A disconnect, wouldn’t you agree? It’s why Leeward holds it alongside Lumentum, First Horizon, and Clean Harbors – businesses where cyclical pressures conveniently obscure the underlying economic realities. A convenient arrangement, really. One can only hope they have a good accountant.

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2026-02-06 14:24