We posted our fourth quarter and full-year 2025 financial results this morning. In the fourth quarter, Axalta delivered another period of strong operational execution, solid margin performance, and record cash generation. We generated net sales of approximately $1.3 billion despite ongoing macro headwinds in North America with year-over-year growth in three of our four regions. Adjusted EBITDA was $272 million, with a margin remaining strong at 21.5%, an improvement of 50 basis points versus last year.
This marks our seventh consecutive quarter at or above our A-Plan margin target of 21%, underscoring the strength of our commercial discipline, pricing actions, and cost management. In Mobility Coatings, we delivered a record fourth-quarter performance in net sales and adjusted EBITDA, supported by new business wins and steady global production. The fourth quarter marked a record for cash generation, both in terms of operating and free cash flow. Looking at 2025, we delivered record financial results this year, and I'm extremely proud of what the team accomplished.
Adjusted EBITDA was $1.13 billion, representing a $317 million growth since 2022, with margins expanding over 500 basis points to 22%. Adjusted diluted EPS increased approximately 55% over the same period, reaching another all-time high, and free cash flow came in at $466 million, an increase of over $300 million compared to 2022. These are exceptional results that highlight our strongest financial performance on record. Our team has consistently raised the bar, reinforcing the foundation of a well-performing and resilient company.