Axalta Coating Systems Ltd.

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 havetwo 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.

(1)The Company hasno intercompany sales between segments.

The following tables reconcile net sales to Segment Adjusted EBITDA for the periods presented:

(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, other operating charges, research and development expenses, andother 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:

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:

Net long-lived assets by region were as follows:

(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% and 12% of the total net sales for the three months ended March 31, 2026 and 2025, respectively. Germany represented approximately 8% and 7% of the total for the three months ended March 31, 2026 and 2025, respectively. Mexico represented approximately 6% of the total for the three months ended March 31, 2026 and 2025. Brazil represented approximately 5%and 4% of the total net sales for the three months ended March 31, 2026 and 2025, respectively. Canada, which is included in the North America region, represented approximately 3% and 4% of the total for the three months ended March 31, 2026 and 2025, respectively.

(3)Long-lived assets consist of property, plant and equipment, net. Germany long-lived assets amounted to approximately $229 million and $230 million at March 31, 2026 and December 31, 2025, respectively. China long-lived assets amounted to approximately $157 million and $156 million at March 31, 2026 and December 31, 2025, respectively. Mexico long-lived assets amounted to approximately $94 million and $92 million at March 31, 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 March 31, 2026 and December 31, 2025.