Global paint and coatings maker AkzoNobel has published results for the fourth quarter and full year 2025.
In the fourth quarter of 2025, organic sales declined by 1 per cent, reflecting lower volumes, while reported revenue fell by 9 per cent due to foreign exchange translation.
The company completed the divestment of AkzoNobel India Ltd during the period, with a valuation of 25 times EBITDA and proceeds of €922m. The transaction had an operating income impact of €655m.
Operating income for the quarter increased to €787m, compared with €127m in the same period a year earlier. Adjusted EBITDA amounted to €309m, an increase of €16m in constant currencies compared with 2024, while the adjusted EBITDA margin rose to 13 per cent from 12.3 per cent, driven by efficiency measures. Net cash from operating activities was positive at €462m, up from €398m in the prior-year quarter.
The company also announced a proposed merger with rival Axalta, which remains subject to shareholder and regulatory approvals. Completion is expected in late 2026 or early 2027.
Organic sales flat in 2025
For the full year 2025, the firm’s organic sales were flat, as an increase in price and mix was offset by lower volumes. Revenue declined by 5 per cent compared with 2024. Adjusted EBITDA for the year was €1.44bn, within 1 per cent of the company’s initial guidance. The adjusted EBITDA margin increased to 14.2 per cent from 13.8 per cent, supported by operating expense reductions of €98m at constant currency linked to efficiency programmes.
Operating income for the year rose to €1.16bn. This included identified items of €83m positive, related to the divestment of AkzoNobel India, provisions for Australian litigation and restructuring activities. Net cash from operating activities increased to €915m, compared with €673m in 2024, reflecting improvements in working capital. A final dividend of €1.54 per share was proposed, unchanged from the previous year.
AkzoNobel CEO Greg Poux-Guillaume comments: “In a year when markets went largely backwards, we continued to improve our profitability, with adjusted EBITDA margin rising to 14.2 per cent for the full-year, including a 70 bps step-up in Q4. This is a testament to the strength of our operational execution, with our plans delivering an above-target OPEX and headcount reduction, and working capital improvement.
“Our portfolio strategy, combined with strong cash flow generation, enabled us to end the year with a leverage ratio of 2x net debt/adjusted EBITDA, in line with our mid-term ambition. We also initiated our next wave of value creation with a proposed all-stock merger with Axalta. By joining forces, we’ll not only generate significant synergies, but also create a company that will bring the best of both to our customers, shareholders and employees.”
Poux-Guillaume adds: “Looking ahead, based on current market visibility, we don’t anticipate a material recovery across our end markets in 2026. We expect a weak first half, with the second half helped by easier comparisons. Against this backdrop, our efficiency measures will continue to support our performance as we push towards our mid-term targets.”
Based on current market visibility and prevailing trading conditions, AkzoNobel expects to deliver €100m of adjusted EBITDA improvement in constant currencies in 2026. Adjusted EBITDA for the full year 2026 is expected to be at or above €1.47bn, based on year-end 2025 exchange rates and adjusted for the India divestment.
Over the mid-term, the company aims to expand profitability to deliver an adjusted EBITDA margin above 16 per cent and a return on investment between 16 per cent and 19 per cent.
AkzoNobel operates in over 150 countries and has a portfolio that includes the coatings brands International (Interlux in North America), Sea Hawk, Intersleek and Awlgrip, as well as the global domestic paint brand Dulux.
In September 2024, AkzoNobel confirmed plans to cut around 2,000 jobs worldwide as it attempts to cut its costs. In January 2025, the firm confirmed it was cutting its French workforce despite a €22m investment.
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