v3.26.1
SEGMENTS
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
SEGMENTS SEGMENTS
The Company identifies an operating segment as a component: (i) that engages in business activities from which it may earn revenues and incur expenses; (ii) whose operating results are regularly reviewed by the Chief Operating Decision Maker (“CODM”) to make decisions about resources to be allocated to the segment and assess its performance; and (iii) that has available discrete financial information.
We have two operating segments, which are also our reportable segments: Performance Coatings and Mobility Coatings. The CODM reviews financial information at the operating segment level to allocate resources and to assess the operating results and financial performance for each operating segment. Our CODM is identified as the Chief Executive Officer because he has final authority over performance assessment and resource allocation decisions. Our segments are based on the type and concentration of customers served, service requirements, methods of distribution and major product lines.
Through our Performance Coatings segment, we provide high-quality liquid and powder coatings solutions to both large regional and global customers and to a fragmented and local customer base. These customers comprise independent or multi-shop operator body shops as well as a wide variety of industrial manufacturers. We are one of only a few suppliers with the technology to provide precise color matching and highly durable coatings systems. The end-markets and reporting units within this segment are refinish and industrial.
Through our Mobility Coatings segment, we provide coatings technologies for light vehicle and commercial vehicle original equipment manufacturers (“OEMs”). These global customers are faced with evolving megatrends in electrification, sustainability, personalization and autonomous driving that require a high level of technical expertise. The OEMs require efficient, environmentally responsible coatings systems that can be applied with a high degree of precision, consistency and speed. The end-markets and reporting units within this segment are light vehicle and commercial vehicle.
Segment Adjusted EBITDA is the primary measure used by our CODM to evaluate financial performance of the operating segments and allocate resources and is therefore our measure of segment profitability in accordance with GAAP under ASC 280, Segment Reporting. Asset information is not reviewed or included with our internal management reporting. Therefore, we have not disclosed asset information for each reportable segment. The following tables present relevant information of our reportable segments.
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Net sales (1):
Refinish$545 $514 $1,043 $1,025 
Industrial327 322 631 633 
Total Net sales Performance Coatings872 836 1,674 1,658 
Light Vehicle360 362 709 702 
Commercial Vehicle114 107 217 207 
Total Net sales Mobility Coatings474 469 926 909 
Total Net sales$1,346 $1,305 $2,600 $2,567 
Segment Adjusted EBITDA:
Performance Coatings218 200 398 397 
Mobility Coatings87 92 166 165 
Total$305 $292 $564 $562 
June 30, 2026December 31, 2025
Investment in unconsolidated affiliates:
Performance Coatings$2 $1 
Mobility Coatings10 11 
Total$12 $12 
(1)The Company has no intercompany sales between segments.
The following tables reconcile net sales to Segment Adjusted EBITDA for the periods presented:
 Three Months Ended
June 30, 2026		Six Months Ended
June 30, 2026
Performance CoatingsMobility CoatingsTotalPerformance CoatingsMobility CoatingsTotal
Net sales$872 $474 $1,346 $1,674 $926 $2,600 
Segment cost of goods sold (1)
472 306 778 917 596 1,513 
Other segment items (2)
182 81 263 359 164 523 
Segment Adjusted EBITDA$218 $87 $305 $398 $166 $564 
Three Months Ended
June 30, 2025		Six Months Ended
June 30, 2025
Performance CoatingsMobility CoatingsTotalPerformance CoatingsMobility CoatingsTotal
Net sales
$836 $469 $1,305 $1,658 $909 $2,567 
Segment cost of goods sold (1)
451 296 747 891 584 1,475 
Other segment items (2)
185 81 266 370 160 530 
Segment Adjusted EBITDA$200 $92 $292 $397 $165 $562 
(1)Certain amounts included in cost of goods sold on the consolidated statements of operations are excluded from Segment cost of goods sold regularly provided to the CODM.
(2)Other segment items for both segments include certain cost of goods sold not regularly provided to the CODM, selling, general and administrative expenses, research and development expenses, and other (income) expense, net. Certain amounts included in Segment cost of goods sold, including depreciation, are excluded from Segment Adjusted EBITDA and are adjusted for in other segment items.
The following table reconciles Segment Adjusted EBITDA to income before income taxes for the periods presented:
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Segment Adjusted EBITDA (1):
Performance Coatings$218 $200 $398 $397 
Mobility Coatings87 92 166 165 
Total305 292 564 562 
Interest expense, net37 45 75 89 
Depreciation and amortization76 74 152 144 
Termination benefits and other employee-related costs (a)
2 9 6 20 
Merger and acquisition-related costs (b)
35 4 57 6 
Site closure costs (c)
4 2 4 5 
Foreign exchange remeasurement losses (d)
3 4 5 7 
Long-term employee benefit plan adjustments (e)
4 3 8 6 
Stock-based compensation (f)
8 8 15 13 
Other adjustments (g)
2 — 3 — 
Income before income taxes$134 $143 $239 $272 
(1)The primary measure of segment operating performance is Segment Adjusted EBITDA, which is defined as net income before interest, taxes, depreciation, amortization and select other items impacting operating results. These other items impacting operating results are items that management has concluded are (i) non-cash items included within net income, (ii) items the Company does not believe are indicative of ongoing operating performance or (iii) non-recurring, unusual or infrequent items that have not occurred within the last two years or the Company believes are not reasonably likely to recur within the next two years. Segment Adjusted EBITDA is a key metric that is used by management to evaluate business performance in comparison to budgets, forecasts and prior year financial results, providing a measure that management believes reflects the Company's core operating performance, which represents Segment EBITDA adjusted for the select items referred to above.
(a)Represents expenses and associated changes to estimates related to employee termination benefits, consulting, legal and other employee-related costs associated with restructuring programs and other employee-related costs. We do not consider these amounts indicative of our ongoing operating performance.
(b)Represents merger and acquisition-related expenses, including costs related to financial, tax and legal advisory services, associated with both consummated and unconsummated transactions, all of which we do not consider indicative of our ongoing operating performance.
(c)Represents costs related to the closure of certain manufacturing sites, including impairment charges, which we do not consider indicative of our ongoing operating performance.
(d)Represents foreign exchange losses resulting from the remeasurement of assets and liabilities denominated in foreign currencies, net of the impacts of our foreign currency instruments used to hedge our balance sheet exposures.
(e)Represents the non-cash, non-service cost components of long-term employee benefit costs.
(f)Represents non-cash impacts associated with stock-based compensation.
(g)Represents costs for certain non-operational or non-cash losses, net, unrelated to our core business and which we do not consider indicative of our ongoing operating performance.
Geographic Area Information:
The following tables provide disaggregated information related to our net sales and long-lived assets.
Net sales by region were as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
North America$440 $461 $840 $919 
EMEA507 469 995 915 
Asia Pacific227 219 439 434 
Latin America (1)
172 156 326 299 
Total (2)
$1,346 $1,305 $2,600 $2,567 
Net long-lived assets by region were as follows:
June 30, 2026December 31, 2025
North America$565 $561 
EMEA410 420 
Asia Pacific184 185 
Latin America (1)
141 133 
Total (3)
$1,300 $1,299 
(1)Includes Mexico.
(2)Net sales are attributed to countries based on the customer’s location. Net sales to customers in China represented approximately 11% of the total for the three and six months ended June 30, 2026 and 11% and 12% of the total for the three and six months ended June 30, 2025, respectively. Germany represented approximately 7%, 8%, 7% and 7% of the total for the three and six months ended June 30, 2026 and 2025, respectively. Mexico represented approximately 6% of the total for the three and six months ended June 30, 2026 and 2025. Brazil represented approximately 6%, 5%, 4% and 4% of the total for the three and six months ended June 30, 2026 and 2025, respectively. Canada, which is included in the North America region, represented approximately 3% of the total for the three and six months ended June 30, 2026 and 2025.
(3)Long-lived assets consist of property, plant and equipment, net. Germany long-lived assets amounted to approximately $222 million and $230 million at June 30, 2026 and December 31, 2025, respectively. China long-lived assets amounted to approximately $156 million at both June 30, 2026 and December 31, 2025. Mexico long-lived assets amounted to approximately $96 million and $92 million at June 30, 2026 and December 31, 2025, respectively. Canada long-lived assets, which are included in the North America region, amounted to approximately $6 million at both June 30, 2026 and December 31, 2025.