10 High Growth Chemical Stocks to Buy

6. Axalta Coating Systems Ltd. (NYSE:AXTA)

Revenue CAGR: 6.90%

Market Capitalization: $8.11 billion

Axalta Coating Systems Ltd. (NYSE:AXTA) is a globally renowned company that manufactures high-performance liquid and powder coatings for automotive, industrial, and commercial applications. The company serves OEMs, body shops, and various industries globally through its Performance Coatings and Mobility Coatings segments.

In the fourth quarter ended December 31, 2024, Axalta Coating Systems Ltd. (NYSE:AXTA) achieved record net sales of $1.3 billion. This marked its 10th consecutive quarter of growth. Although Performance Coatings’ sales fell 1% YoY to $843 million, primarily due to lower demand in North America, its Mobility Coatings segment saw a 4% YoY increase in revenue to $468 million. This growth was majorly driven by market share gains in China and Latin America. Accordingly, adjusted EBITDA grew 10% to $275 million, with EBITDA margin improving by 170 basis points YoY to 21%. Furthermore, through cost reductions and strategic pricing, adjusted diluted EPS increased 30% to $0.60.

Axalta Coating Systems Ltd. (NYSE:AXTA) also made significant progress in expanding its international presence in 2024. It surpassed its yearly goal of adding 2,800 new body shops while strengthening collaborations with manufacturers of internal combustion engines and electric vehicles (EVs). The company was able to achieve remarkable sales growth in China. Furthermore, by launching low-VOC coatings and digital color-matching solutions, the company facilitated its sustainability initiatives.

Moreover, Axalta Coating Systems Ltd. (NYSE:AXTA) has partnered with Dürr Systems to improve OEM automotive applications and has acquired CoverFlexx to strengthen its industrial coatings division. With demonstrations already in progress, this collaboration combines Dürr’s robotics and Axalta’s NextJetTM technology to achieve accurate, low-waste painting.

Axalta Coating Systems Ltd. (NYSE:AXTA) anticipates a 3% to 5% increase in revenue by 2025, predominantly driven by the expanding use of motor insulation and battery coatings, as well as the ongoing demand for Performance Coatings. Accordingly, its stock has risen 8.8% year-to-date as of the time of writing.

Although the company is expected to face challenges from rising raw material costs, tariffs, and currency headwinds, Axalta is well-positioned for future growth, making it one of the best High Growth Chemical Stocks to Buy.