管理層發言
Ladies and gentlemen, thank you for standing by. Welcome to Axalta Coating Systems Second Quarter 2026 Earnings Call. Today's call is being recorded, and a replay will be available through May 7. Those listening after today's call should please note that the information provided in the recording will not be updated and therefore may no longer be current. I will now turn the call over to Colleen Lubic, Vice President of Investor Relations.
Good morning, everyone, and thank you for joining us today to discuss Axalta's second quarter 2026 financial results. I'm Colleen Lubic, Vice President of Investor Relations. Joining me today are Chris Villavarayan, our Chief Executive Officer, and Carl Anderson, our Chief Financial Officer. Before we begin, please turn to Slide 2 for our forward-looking statements and non-GAAP disclosures. We posted our second quarter 2026 financial results this morning. You can find today's presentation and supporting materials on the Investor Relations section of our website at axalta.com. Our remarks today and the slide presentation may include forward-looking statements reflecting our current views of future events and their potential impact on Axalta's performance, including with respect to the proposed merger of equals between Axalta and AkzoNobel. These statements involve risks and uncertainties, and actual results and outcomes may differ materially. We are under no obligation to update these statements. Our remarks and the slide presentation also contain various non-GAAP financial measures. We included reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures. Please refer to our filings with the SEC for more information. I will now turn the call over to Chris.
Thank you, Colleen, and good morning, everyone. Let's turn to Slide 3. I want to begin the call by congratulating our team on an exceptional quarter. We set records for adjusted EBITDA, which increased 5% from the prior period to $305 million; adjusted diluted EPS, which improved 13% year-over-year to $0.72, exceeding our expectations; and we had the lowest net leverage in Axalta's history. Also notable is net sales growth of 3% year-over-year and an excellent adjusted EBITDA margin of 22.7%, up 30 basis points from the prior year period and the highest second quarter in many years. We are clearly on track to achieve the key milestones set as part of our plan that we will close out this year. Cash was again a great story this quarter. We delivered $152 million in cash from operations and $107 million in free cash flow, an improvement of 6% year-over-year. Based on our first half performance, we remain well positioned to deliver another year of excellent cash generation. The Axalta team has driven growth, controlled the controllables, and significantly improved the balance sheet. Let's turn to Slide 4. Across the portfolio, the disciplined execution and operational excellence we have worked on perfecting over the last several years has paid off. Investments in technology within all businesses, substantial operational enhancements, and cultural changes that include accelerated decision-making and accountability have elevated our product and service offerings. These offerings have translated into meaningful business wins across all end markets. Starting with Refinish: net sales increased 6% year-over-year, driven primarily by the abatement of destocking this quarter and favorable price and mix. Europe, our largest Refinish region, delivered a record quarter for net sales. Regarding body shop wins, we far exceeded our normal run rate with more than 1,900 new net body shops secured in the first half of this year. In addition, in July, we won approximately 800 new North American locations associated with leading multi-shop operators. This represents excellent wins for Axalta and further reinforces our growth momentum. As I've told you before, 90% of our 95,000 Refinish customers are small businesses; time in a body shop is money and we optimize this for them by creating productivity and efficiency improvements. In Industrial, we're far outperforming our expectations for profitability with 13 quarters of adjusted EBITDA margin expansion, despite the choppy macro environment in North America. In Asia, we have delivered six consecutive quarters of net sales growth, driven by higher demand for Energy Solutions, and in Europe, we have posted another quarter of volume growth. While North America remains challenged, the business is not standing still. When demand recovers, and we certainly expect that it will, we are positioned to capitalize on volumes as we enter the next up cycle with record levels of profitability driven by our cost structure that is significantly more efficient than in prior cycles. In Mobility, we delivered a record quarter in net sales of $474 million, including record quarterly sales in commercial vehicle. Our Commercial Transportation Solutions business continues to perform exceptionally well at record levels, and we're benefiting from the ramp-up in Class 8 production in North America. We are equally pleased with the consistency and profitability of the Mobility segment, which delivered an adjusted EBITDA margin of 18.4%. The combination of flawless execution and disciplined cost and productivity initiatives differentiate Axalta. This represents our eighth consecutive quarter of lower operating expenses on a constant currency basis. In addition, variable input costs declined this quarter by nearly 2%. These actions contribute to record quarterly adjusted EBITDA and the highest second quarter margin in the last decade of 22.7%. Well-defined plan targets that put our customers first, purpose-driven innovation, and profitable growth, fueled by outstanding operational performance and a global team that is second to none, put us in an excellent position for our next chapter with AkzoNobel. With that, I'll turn the call over to Carl to go through the financials.
Thank you, Chris, and good morning, everyone. Turning to Slide 5. Net sales were up 3% year-over-year, coming in at just under $1.35 billion, the highest quarterly sales performance over the past two years. Foreign currency translation tailwinds, contributions from acquisitions, and positive price mix were partially offset by lower volumes in Mobility and Industrial. Net income was $89 million, a decrease of $21 million versus the prior year period. The decline was primarily attributable to an incremental $31 million of transaction-related costs associated with the pending merger with AkzoNobel. Adjusted net income, which excludes merger and acquisition-related costs, increased 10% year-over-year to $153 million compared to $139 million in the prior year period, driven primarily by Performance Coatings earnings and lower interest expense. Adjusted EBITDA increased 5% to a record $305 million, resulting in an adjusted EBITDA margin of 22.7%. Our performance exceeded expectations due to favorable business mix, supported by increased sales in Performance Coatings and continued cost discipline. Adjusted diluted earnings per share increased 13% year-over-year to a quarterly record of $0.72 per share, benefiting from higher earnings and lower interest expense. Finally, our momentum and cash generation remained consistent again in the second quarter. Cash provided by operating activities was $152 million, while free cash flow was $107 million, representing increases of 7% and 6%, respectively. The improvement compared to the prior year period was driven by better working capital performance and lower interest payments. Turning to Performance Coatings: the segment delivered solid second quarter results with net sales increasing 4% year-over-year and 9% sequentially. Compared to the second quarter of last year, growth was driven by acquisitions, positive price/mix, and favorable foreign currency translation. Refinish net sales increased 6% to $545 million supported by volume growth in three out of four regions and positive price/mix as channel inventory normalizes in North America. Industrial net sales increased 2% year-over-year to $327 million. Volume growth in Europe and Asia, along with positive price/mix, more than offset lower volumes in North America. Performance Coatings adjusted EBITDA increased 10% to $218 million while adjusted EBITDA margin expanded 130 basis points to 25.1%. The increase was driven by the combination of positive price mix, continued cost discipline, and flat volumes in Refinish allowing us to effectively convert top line growth into higher earnings. Mobility Coatings delivered a record second quarter net sales of $474 million, an increase of 1% from the prior year period. Light Vehicle net sales declined slightly as favorable foreign currency and organic growth in Latin America partially offset lower volumes in other regions. Commercial Vehicle net sales increased 7% year-over-year, supported by volume growth in all four regions and favorable foreign currency translation. We are seeing North America Class 8 production improving and expect this to continue in the second half. Mobility Coatings adjusted EBITDA totaled $87 million in the second quarter, with adjusted EBITDA margin of 18.4%. Margins were up 90 basis points sequentially, driven by solid conversion on incremental revenue. Compared to a year ago, tailwinds from higher volumes in Commercial Vehicle were more than offset by favorable one-time items recorded in the second quarter of last year that did not repeat. Turning to Slide 8. In the second quarter, we delivered another period of consistent cash generation, which highlights the durability of our operating model. Through June, cash provided by operating activities has increased 31% compared to the first half of 2025. We also continue to strengthen our balance sheet, reducing gross debt by $80 million during the quarter and $135 million year-to-date. Through June, interest expense was 16% lower than the prior year period, reflecting the benefits of our deleveraging efforts. As a result, we ended the quarter with a net leverage ratio of 2.2x, the lowest in the company's history and remain on track to exit the year below 2x. As we turn to our outlook on Slide 9, our strong second quarter results and performance across the organization are putting us on an excellent path for 2026. External forecasts and key performance indicators remain broadly consistent with the assumptions underpinning our prior guidance. That said, the situation in Iran, tariffs, and broader geopolitical tensions in the Middle East continue to create some uncertainty. As a result, we believe it is prudent to maintain our previously issued full year guidance for net sales, adjusted EBITDA, adjusted diluted earnings per share, and free cash flow. Having said that, we continue to operate very effectively and are prepared to convert on higher volumes if they come in stronger than planned. Specifically, for the third quarter, we expect net sales to increase by low single-digit percent compared to the prior year period, with adjusted EBITDA in the range of $295 million to $305 million. We also anticipate adjusted diluted earnings per share of approximately $0.70, up 4% from a year ago. Overall, we are encouraged by our first half results and believe we are well positioned to deliver another year of record financial performance. Turning to Slide 10. We're now just over a week away from a defining milestone: our Special General Meeting on August 5, where shareholders will vote on the proposed merger of equals with AkzoNobel. Regulatory clearances also continue in parallel, and we remain on track for closing in late 2026 or early 2027. From a financial standpoint, the fundamentals of the transaction are exactly where we want them. We continue to expect approximately $600 million annual run-rate cost synergies with roughly 90% captured within the first three years following close. We also see attractive revenue synergy opportunities through cross-selling, technology sharing, and expanded customer access across a broader global platform. The planning work completed to date has only strengthened our confidence in those numbers. Just as important, the results we've walked through today mean we'll enter this combination from the strongest financial position in our history: record earnings, robust cash generation, and our lowest ever net leverage. Following the vote, integration preparation will accelerate as we prepare for day one. Now I will turn the call back to Chris for closing remarks.
Thanks, Carl. I opened today's call by celebrating our outstanding quarter, and I want to close it by thanking the people who made it possible: to our employees around the world, thank you for your commitment to our customers and to our performance. Your focus on execution, productivity, and operational excellence have energized and strengthened Axalta as a leading coatings company. Because of your efforts, we're well positioned to capitalize on growth opportunities, maintain industry-leading profitability, and maximize the value of our proposed combination with AkzoNobel for our shareholders. Congratulations on a job well done. Thank you for joining us today. Operator, please open the line for questions.
分析師問答
Refinish looked a bit better than we had expected in Q2. So as we look into the second half with the destocking headwinds easing, how are you feeling about volumes? Can this business grow volumetrically year-over-year in the back half? And as we look at that 800 new stores, I guess, in July, what does that mean for organic growth contribution?
Good morning, Matt. Again, certainly proud of our performance in Q2 and really, if you think about it, a lot of that is, as I think about the business, it's really tied to stability and recovery. It's a lot of what we've been seeing when it comes to the market. I would say collisions are starting to be in line with our expectations. North America was down about mid-single digits, and as I look at Europe, that was more like low single digits. So collisions are coming in exactly where we wanted and then it transitions to the strategy. And here, when you think about the strategy, it's always what we've said we're going to do: acquisitions, what we drive in new body shop wins, adjacencies, and then pricing. And across all those three elements, we're well positioned. So three of those elements you can see in Q2. But really, to your point, as we look forward into Q3 and Q4, the new body shop wins: in total, we're at about 2,700 body shops through July. So that's on average—we do about 2,500 per year—so we're well ahead there. And additionally, the fact that we won 800 body shops that are in the MSO space, the benefit we get in the back half is really more on the volume side. So we'll certainly pick up on the volume side in the back half. We certainly have what we have done on pricing that's coming through. And then additionally, on top of that, we continue to work on acquisitions. We did some M&A on distributors outside North America, especially in Europe and Asia, primarily in Australia; that's certainly coming through in Q2, but we also expect that benefit to flow through the back half. So again, we're feeling quite good with where Performance Coatings, or more importantly, Refinish, is sitting at this point.
Okay. And if I could, free cash flow was similarly a bit better than expected. Primarily, it looks like working capital, which is maybe a bit counterintuitive to me in the backdrop. So how did you manage this? How sustainable is this? Are there givebacks in the second half? How should we think about the cash flow profile for the year?
Yes, Matt, thanks for the question. That's a great question. And really, I think that's, again, certainly something that we're very, very proud of. The best part of this earnings call as I think about Q2 is a ton of comments on records. But specific to cash, I think we've become really a cash-generating engine. And for that, the credit here is really to Carl and the management of cash by the finance team. So I'm going to turn it over to Carl.
Thanks, Chris. Yes, Matt, to your question, we thought the team did a really nice job of improving our cash conversion cycle year-over-year. So we improved about 10%. A lot of that was driven by turning our inventory days a lot quicker. So we actually reduced that about eight days on a year-over-year basis. And it's important because while free cash flow is up 6%, it does include certain deal fees as well. So if I was to exclude that, we would have been close to about 20% on free cash flow on a year-over-year comparison. And that's at the same time that we are continuing to drive overall improvements within the business. So overall, a good story on cash flow. Our leverage is at a record of 2.2x and so you're seeing that come through on lower cash interest payments as well.
Chris, Industrial looks like things did pick up in the second quarter. Obviously, in Europe and Asia, what was the volume improvement overall in that business? And where are you seeing the pockets of strength overall in industrial?
Yes. Good morning, David. I would say volumes in Industrial in Q2 were actually down about 1%. Primarily if you look at it, net sales were up 2%. So what happened here is really what we did with pricing and our actions in driving cost and just the pure focus on that team and really looking at margins. If I look at where we started about two to three years ago, margins are actually about twice what they used to be. So that team has just done a phenomenal job of managing cost with the macro where it's been. But specific to as you look forward or what we see in terms of volumes, I would say North America still remains choppy and challenged. But our true story on wins and volume is really coming from Europe. Europe is up, primarily driven by our E-coat business, and then Asia. Asia has had six quarters of growth driven by our Energy Solutions business there. Everything that we provide, whether it's for battery casings or what we do for motors with impregnating resins, all of that is coming in as a strong positive. Even as we look at Q3 and our numbers in July, that performance continues. So at this point, our Industrial business in Q2 is delivering the best margins or best performance in the history of Axalta, and it's actually holding through. A lot of it is we're still very focused on volumes, but the strength is coming out of Europe and Asia, and we're watching the weakness in North America. It feels like we've hit bottom, but we continue to say that quarter after quarter. The expectation is that if anything picks up there, then the team really has the potential of driving that margin even higher.
Very good. And just going back to Refinish, to be clear in Q3, do you expect volumes to be flat or up or down?
I expect volumes to be pretty much flat for Q3 and then up as I think about Q4. Overall, I would say in the back half, we expect volumes to be slightly up. But in reality, it's what we're going to do in terms of—if I look at the back half of the year, we're expecting claims to be down as we have consistently been seeing, down mid-single digits. What the team is doing with the wins is driving us to hold flat to up. The difference with Q3, as you know, with all the new wins that we have, it takes a bit of time for this to actually roll through into the P&L. So that's what's driving the ramp-ups, but we do expect Q4 to start picking up in terms of volumes.
I'd like to just piggyback off of David's question real quick. So as it relates to the Refinish volume outlook in the second half, I know this is a tough question, but if you could just do your best to parse out, how much of this is just, hey, destocking is in the past and mathematically speaking, we're doing better in terms of relative stability? How much of that is actually collision rates—those seem more or less in line with your expectations? And then how much of that in terms of the net body shop wins would be something like Iris contributing specifically in Europe. I'd love to hear how you're thinking about those three variables.
Sure. Thanks for the question. I'll break it out. If you think about it, destocking had an impact for us of low to mid-single digits. If I look at Q2 and Q3, destocking is mostly completely out. So I would call that a net positive from where we were. Essentially, it's in line with what we've always said. As I think about stabilization and recovery, that's coming from markets where the collision rate drops are more in line with our expectations. So North America is dropping about mid-single digits; Europe is probably low single digits. On top of that, other metrics: miles driven is up slightly—nothing has changed there. Insurance rates continue to look slightly better than we had planned, and used car pricing is also trending the right way. So destocking is a positive; miles driven is a positive; insurance rates are slightly better; used car pricing is good. That's what's driving the recovery expectations. The counter to this is that affordability issues mean consumers in some cases are not putting in insurance claims. Total losses are going up because of the cost of repairs—parts costs and cost of repairs are having an impact. So that's the market picture. What we plan for is mid-single digit declines through the back half. That said, the positive for us when you think about the wins—the MSO win we won in North America is 600 body shops; it's one of the top five MSOs in North America. We're very good with this. We also won two large MSOs in North America. In Europe, the team secured another large one. In Asia, we won BMW business in Japan for about 80 body shops, something we haven't had for a long time. Add all that up, and the confidence on the new business wins gives us great confidence for future growth. On top of that, our adjacencies growth is up $15 million. So it's been a very good story for us.
Got it. And then you and Carl obviously done a lot on costs irrespective of basically the macro outlook or what's been going on with your Refinish customers. Can you just comment on how things are running heading into the second half of this year, where you're seeing potentially new opportunities, how you're executing on existing opportunities? Anything to help us triangulate how you would assess your own cost execution report card into the deal closed presumably?
Yes. As it relates to cost, it really starts with the culture of Axalta—across functions, across regions. It's something that we talk about daily, weekly, monthly. It is the overall focus of the company to be much more efficient as we progress. The trajectory we're on continues; we're not done. There's more opportunities as we continue to look at what we can do throughout the rest of this year. More importantly, it provides a really strong building block of what we could be doing when we get this merger over the finish line and close with AkzoNobel. So I would just say more of the same as we look to execute the rest of this year.
I had a question around the interplay between volumes and pricing. I was wondering if you had any sense during Q2 that there was a bit of pull-forward as customers jumped ahead of price increases that are coming, effectively in Q3?
No, we actually saw very little of pull-forward. A lot of the pricing we drove was early in Q2. As we finished Q1, we assessed mid-single-digit inflation, and we had all three businesses move out with pricing early in the quarter. If I look at backlog at the end of Q2 and even our July numbers, there was very little in the form of a pull-forward that was driving results for Q2. We're quite comfortable with the pricing we've put in place. Peak inflation hits us more in Q3 and a bit in Q4. A lot of this is driven from the fact that we performed well from a cost perspective in the first half. We had inventory levels that provided a tailwind as well as consistent work from our purchasing teams managing costs and driving productivity. That provided a strong tailwind, but some of that benefit will roll into the back half as we cycle through inventory and purchasing. With the geopolitical uncertainty, we might price in certain pockets as we go forward, but from a pricing dynamic, we feel we're in a good spot. In terms of a pull-forward, we haven't seen much. The demand strength came in areas where we had strong performance stories—much of it was destocking and then the demand picture driving both Refinish and Industrial.
So going back to being prudent with guidance for the second half: what I'm hearing is there is nothing specific you're watching out for beyond overall uncertainty. There's nothing in terms of business unit trends or raw material spending into your P&L for Q3 specifically—just overall uncertainty?
Yes, Laurent. If you think of the second half, even at the low end of full year guidance, that implies the second half comes in about $12 million higher than the first half from an EBITDA basis. From a cost dynamic, raw materials will impact us more in the back half than the first half. On a gross level, we see the cost impact of raw materials being up about mid-single digits for the full year. For Q3 it might tick up a little more to get towards the low end of high single digits as you exit the year. But the productivity work our purchasing team is driving is a significant offset and we expect to be able to mitigate that to deliver the guidance construct we've put forward.
This is Caleb on for John. I just had a quick question in commercial. If you could just talk to some of the strength you saw there that came in a little bit better than we were expecting. So maybe some color there would be great.
Yes. It's really two things. First, North American Class 8 market is picking up; it had been at cyclical lows, and we're starting to see it return toward a normal run rate—about 300,000 trucks per year, roughly 75,000 per quarter—which is what we're seeing in the back half. Second, our Commercial Transportation Solutions (CTS) business outside just Class 8—off-highway, military, ambulances, fire trucks, RVs—has been performing extremely well. That business has now grown to about 50% of our overall commercial vehicle business and is up about 5% year-over-year. That, plus where Class 8 is going, is driving the improvement in Mobility even though Light Vehicle markets are slightly down. The Light Vehicle team has also done an excellent job winning new business in Europe and Latin America. Latin America has been a strong story for about a year and a half, and a program we called Fast and Furious to transition some Light Vehicle customers and focus on some Commercial Vehicle customers has performed beyond expectations. All of that is driving positives in Mobility and CV.
Got you. Okay. That's really helpful. Maybe just going back to Refinish. One of the dynamics has been winning new body shop wins and MSO consolidation. If you had to frame what inning we are in that dynamic, how would you frame that?
I think it's early to call. MSO consolidation has slowed a bit based on market conditions. That said, large MSOs play a significant part in our business because much of the premium work runs through the MSO space. Axalta's Refinish is our crown jewel; it accounts for almost half of Axalta and we're a leader in the premium market. We've moved from servicing 12 to about 13 of the top 20 MSOs. MSOs usually provide to insurance carriers for a lot of the work that's done, so it's important to stay focused. We're focused on driving this because it grows our premium business and gives us the foundation to expand in the economy business. That scale, product, and technology support our economy strategy; adjacencies have grown from about 9% to 11–12% over the last three years. With the merger with AkzoNobel, we have an opportunity to grow in the economy space because they're strong there. So as I think about Refinish, we're well positioned with MSOs and with the merger we'll become an even stronger player.
Chris, there's a ton of dynamics going on with the destocks and raw materials and so on. If you zoom out a bit, what does the macroeconomic backdrop feel like across the major regions you have exposure to—North America, Europe, Asia, Latin America? Are you seeing any change versus the previous baseline relative to distortions in order patterns and destocking?
I think it's pretty consistent with what we've seen the last couple of quarters. If you zoom out: Refinish collision claims down mid-single digits is our forecast. Europe is a bit better than that. Overall, the market is a bit sluggish. Light Vehicle markets are down about 1–3%, primarily North America and China. The rest of Asia and Europe seem stable. Industrial: North America continues to be weak and Europe seems stable. I'll turn it to Carl for additional color on the revenue story.
Ghansham, the other point to add as you think about the second half for our revenue story is that foreign exchange tailwinds will begin to abate. As you look at the second half, we are planning for revenue to be up low single digits. Part of that will be the volume story that Chris described on Refinish. We also expect price/mix to be positive for the year, and we continue to have a little bit of accretion from acquisitions we've done previously in Refinish. So even in this environment, we're able to continue to grow the top line.
Okay. Great. And then I'm sorry if I missed this, but on the cost trend line, what was the inflation for raw materials in Q2? And what's your current expectation for the back half of the year with all the ups and downs with upstream energy costs, et cetera?
At a full-year gross basis—not including product offsets—we expect full-year raw material pressure to be about mid-single digits. Q2 was about low single digits headwind as well.
It's Edlain Rodriguez on behalf of John. A quick question on Industrial: I always thought the U.S. is doing better than Europe, but clearly your European business is outperforming North America. What do you think the U.S. is lagging in that business?
In North America, it's tied to consumer confidence, interest rates, and house building. Much of our North American Industrial business is tied to building products, so as construction goes, our performance improves. With current interest rates and negative sentiment in North America, that's driving some lag. Europe is more stable for the specific products we serve—E-coat, and other applications tied to vehicles—so Europe is performing better for us.
Okay. Great. And can you talk about China—what you see there in terms of OEM? What's your outlook for the Chinese market?
For the full year, our global expectation is about $90 million in a particular context you may be looking at; specific to China, I would call that about $32 million for the full year, and year-over-year it's almost flat. Front half to back half, it's flat. Dynamics: the local market has a ton of new models and technology coming out, and customers are waiting for new models in the back half. The strength in China for us is the export market, which is up about 70% on a comp basis and is driving some strong performance.
Just a question on raw materials: when you look at the increased inflation in the back half, is that just current prices rolling through the P&L, or do you actually expect market prices for a lot of your raw materials to move higher? Within that, is everything moving roughly the same, or is there differentiation—some up 15–20% and others flat? How volatile is the basket for you guys?
The bulk of what we're seeing would be prices holding where they are now and the rolling effect into the P&L. We do see differences depending on what we're buying: solvents have been up roughly 15–20% based on oil; monomers have been up high single digits; others have been lower. It's a mix across the basket, but at this moment we're not forecasting significant changes in overall price levels for the rest of the year.
Great. And then can you remind me the one-time benefit you got in mobility last year—how big was that?
It was about $7 million of a benefit a year ago.
Your price/mix in mobility was down about 1.5%. Is that a bottoming for you? Do you think your price comparisons will improve from here? Can you get all the way to positive price comparisons by the end of the year?
Yes, regarding mobility overall, we expect it to begin to inflect in the third quarter, so you'll start seeing that turn positive in Q3. Keep in mind, some of what you saw was more mix-related than price in Q2. Also, we have the RMI business, which represents about half of the mobility segment, that will begin to kick in as we get into the fourth quarter.
Do you think your Light Vehicle volumes will grow in the second half, or is that too hard in the current environment?
We are showing volumes to be up slightly, driven by the wins. What the teams have done in terms of winning in Europe and Latin America should drive some volume growth in the back half for Light Vehicle. Additionally, the overall Mobility segment, including Commercial Vehicle and CTS wins, should show some volume growth in the back half.
This is Lucas Beaumont on for Josh. I wanted to get back to Refinish. It seems like price/mix there was up low single digits in Q2. I know there's some noise looking forward with weak comps in North America impacting mix. You called out North America being the weakest area in terms of claims too. So I wanted to understand the interaction there and how you're thinking about a potential improvement in price/mix in the second half given that higher prices are still flowing through.
Maybe I'll start and turn it over to Carl. From our perspective in North America, with destocking largely behind us in Q3, price/mix should start turning positive. The large 600 body shop win we obtained will begin to help a quarter or two after implementation and should aid improvement in North America. So my expectations are the North American business will continue to show positive price/mix momentum, driven by destocking easing and new business wins. I'll let Carl add more color.
A little more color on Refinish: the expectations we had for Q2 have been consistent with the messaging we've provided over the last 12 months about when things would begin to turn for Refinish. It came in as we expected, maybe even a bit better. A lot of the mix impacts, which drove price/mix pressure over the last several quarters, are largely behind us, and as we get into the third quarter we should have another positive price/mix story.
Great. And on the Light Vehicle volume side, volumes were down roughly 3% in the quarter versus industry build rates down slightly in the first half—your volumes came in about 200 basis points below build rates. What's driving that and how do you see your outlook in the second half relative to build?
It's primarily driven by the customers we serve—specific customers in China and North America. When those customers reduce volumes, that affects us. We also saw manufacturing transitions between the U.S. and Mexico for some customers; those moves can create timing differences. The new business wins in Europe and Latin America, and eventual stabilization of customer volumes, should normalize these differences and support our view of volume growth in the back half.
Thank you, ladies and gentlemen. We have now reached our allotted time for questions. I'd like to turn the call back over to Chris for any closing remarks.
Well, thank you. Thanks, everyone, for calling in. From my perspective, again, thanks for your continued interest and certainly to the employees of Axalta, a great quarter. We'll be performing at this rate going into Q3 and are certainly looking forward to the vote here in a week and becoming yet a stronger player as soon as we close. Thank you very much.
Thank you, ladies and gentlemen. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.