Global paint and coatings giant AkzoNobel has reported its first-quarter 2026 results.
Organic sales decreased by 1 per cent compared with the same period in 2025, while revenue declined by 9 per cent year on year.
This reflects foreign exchange translation effects of 5 per cent and the impact of the India divestment of 3 per cent.
Operating income was €177m. On a comparable basis, excluding foreign exchange and the India divestment, it increased by €15m year on year. Adjusted EBITDA was €345m, up €24m on a comparable basis. The adjusted EBITDA margin rose to 14.5 per cent, compared with 13.7 per cent in the prior year period, reflecting changes in gross margin.
Net cash from operating activities was -€86m, compared with -€112m in the first quarter of 2025.
During the quarter, the company signed an agreement to sell its Pakistan business to Packages Group. Completion is expected in the second half of the year.
AkzoNobel CEO Greg Poux-Guillaume comments: “We delivered a strong quarter of execution in a turbulent market, with adjusted EBITDA up 7 per cent and margin up 80 bps [basis points], the fourth consecutive quarter of margin expansion. This was achieved through positive pricing and cost efficiency, both of which will continue to support our performance for the rest of the year. Good working capital management underpinned our solid cash delivery.
“While the conflict in the Middle East is impacting our cost of supply, we’re maintaining our guidance for the year. Our already announced price increases are expected to fully compensate anticipated cost impacts based on current assumptions.
“In parallel, we continue to make good progress towards our planned merger with Axalta, hitting all our filing milestones. We remain on target for a mid-year EGM, when shareholders will vote on the proposed merger.”
In reported terms, revenue decreased from €2.61bn in Q1 2025 to €2.39bn in Q1 2026, while operating income declined from €192m to €177m. Adjusted EBITDA decreased from €357m to €345m. On a comparable basis, operating income increased by 9 per cent and adjusted EBITDA increased by 7 per cent.
Based on current market conditions and exchange rates at the end of 2025, the company expects to deliver an improvement in adjusted EBITDA of €100m in constant currencies for the full year. Adjusted EBITDA for 2026 is expected to be at or above €1.47bn, adjusted for the India divestment.
Over the medium term, the company targets an adjusted EBITDA margin above 16 per cent and a return on investment between 16 per cent and 19 per cent.
Leverage is expected to be around 2 times net debt to adjusted EBITDA by the end of 2026. The company intends to maintain leverage at around this level while retaining an investment-grade credit rating.
The full quarterly report is available on the AkzoNobel website.
Proposed Axalta merger on course for 2026-7 completion
The proposed $9.2bn merger with rival Axalta remains subject to shareholder and regulatory approvals, with completion expected in late 2026 or early 2027.
In January, AkzoNobel confirmed that Maarten de Vries will remain as chief financial officer for an additional year as the company prepares for the proposed merger.
De Vries had previously planned to retire at the end of his second four-year term in April, but has agreed to extend his tenure to support the transaction.
Fredrik Westin, who had been announced as the incoming chief financial officer with effect from 1 January 2026, will no longer take up the role.
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