AkzoNobel had published results for Q4 and full-year 2025.

Highlights Q4 2025 (compared with Q4 2024)

• Organic sales down 1% on lower volumes; revenue down 9% on FX translation

• Closing of divestment of Akzo Nobel India Ltd (valuation 25x EBITDA, proceeds of €922 million, operating income impact €655 million)

• Operating income increased to €787 million (2024: €127 million)

• Adjusted EBITDA at €309 million, up €16 million in constant currencies (2024: €321 million)

• Adjusted EBITDA margin increased to 13.0% (2024: 12.3%) driven by efficiency actions

• Net cash from operating activities positive €462 million (2024: positive €398 million)

• Proposed merger with Axalta to create a premier global coatings company 

Highlights Full-year 2025 (compared with full-year 2024)

• Organic sales flat, with increase in price/mix offset by lower volumes; revenue down 5%

• Adjusted EBITDA at €1,444 million, within 1% of initial guidance

• Adjusted EBITDA margin expansion to 14.2% (2024: 13.8%); driven by OPEX reduction of €98 million at constant currency on strong execution of efficiency programs

• Operating income increased to €1,164 million of which identified items of €83 million positive including divestment of Akzo Nobel India, provision for Australian litigation and restructuring (2024: €917 million)

• Net cash from operating activities €915 million (2024: €673 million) on working capital improvement

• Final dividend proposed of €1.54 per share (2024: €1.54 per share)

AkzoNobel CEO Greg Poux-Guillaume commented:

“In a year when markets went largely backwards, we continued to improve our profitability, with adjusted EBITDA margin rising to 14.2% 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.

“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.”

Outlook²

Based on current market visibility and at prevailing trading conditions, the company expects to deliver €100 million of adjusted EBITDA improvement in constant currencies. As a result, adjusted EBITDA for the full year 2026 is expected to be at or above €1.47 billion, based on year-end 2025 exchange rates and adjusted for the India divestment.

For the mid-term, AkzoNobel aims to expand profitability to deliver an adjusted EBITDA margin of above 16% and a return on investment between 16% and 19%, underpinned by organic growth and industrial excellence.

The company expects leverage to be around 2 times net debt/adjusted EBITDA by the end of 2026. In the mid-term, AkzoNobel aims to maintain leverage around 2 times, while remaining committed to an investment grade credit rating.

Closing of the Axalta merger, which is subject to shareholder and regulatory approvals, is expected in late 2026 or early 2027.

1 In constant currencies and excluding the divestment of India 

2 Outlook represents current company expectations based on organic volumes adjusted for the India divestment, is subject to ongoing market uncertainties and at exchange rates as of the end of 2025. Outlook is on a standalone basis and excludes any effects from the proposed merger with Axalta.