Making comparisons of paint makers’ sales side by side is often a very tricky task because of the different ways in which paint companies organise multiple sectors under very large, but different, umbrellas. Writing for Coatings World, I’ve often considered AkzoNobel alongside PPG Industries, since both possess very similar portfolios of mainstream coatings sector participation (automotive OEM coatings being the main discrepancy).

This time. I’ve chosen to highlight AkzoNobel alongside Axalta Coating Systems, since they are due to be merged in 2026 (or in early 2027), and to report on some of the previously announced aspects that will lend shape to the new two-centered super-company that will have a pair of trans-Atlantic headquarters in the future.

Headline Figures at AkzoNobel

2025 was a year for significant transformation in key national markets for AkzoNobel, chiefly in France and India. In France, the company has been pursuing greater manufacturing efficiency in order to make its operations leaner, while its decision to exit most (but not all) of the coatings sector in India through the divestment of its operations to the JSW Group is something that might surprise many, given the prominence of India in the emerging markets league.

However, the entry of newer players into the Indian coatings market seems to have the entire scenario feeling too overcrowded for some. AkzoNobel has retained its Indian powder coatings business and its International Research Center under the full ownership of AkzoNobel India Ltd (ANIL).

The global headcount at AkzoNobel has now come down to 31,500 by year-end 2025, a reduction of 3,100 from 34,600 at year-end 2024.  Of that shrinkage, 1,300 was due to the Indian divestment, with the remaining majority of the reductions (1,800) attributable to “efficiency programmes.”

The collective result across the entire company for the year 2025 was a 5% decrease in sales (in euro terms), with many regional markets performing flat at best. Operating income rose by 27%, but much of this was attributable to its Indian activities, which delivered a sizeable boost to the operating income figures for Q4. Total organic sales growth in 2025 was flat but made minor gains through price adjustments; volumes were 2% lower due to the macroeconomic jitters arising from North America.

Headline figures for both the Decorative Paints division and the Performance Coatings division culminated in 5% lower sales in both in 2025. Gross profits fell from €4,337 million to € 4,049 million while operating income rose from €917 million to €1,164 million. Pre-tax profits rose sharply from € 838 million to € 998 million, and net profits were also up, moving from € 592 million to € 671 million.

Performance Notes

A breakdown of AkzoNobel’s sales by region for 2025 is given below.

AkzoNobel’s Sales by Region in 2025 (€ Millions and %)

Source: AkzoNobel Report Q4’25.

For the Decorative Paints business, the best areas of growth were China and Vietnam. Lower sales volumes were achieved in Western Europe and Latin America. In the EMEA region, paint sales fell slightly on softer volume demand overall. Softer volume demand in Western Europe was partially offset by rising sales volumes in South Europe and Africa. In Latin America, full-year sales growth reached 6% but currency effects converted this into an 8% decrease at the euro level. Overall sales figures were 5% lower (q.v.) with hyperinflation effects resulting from the company’s participation in Türkiye and Argentina.

The Marine and Protective Coatings business emerged as the best-performing industrial coatings part in the Performance Coatings division, with sales just shy of the 2024 figure, which was €1,575 million. Full-year sales were up by 5% for the sector but currency effects nullified any final euro gains. Double-digit growth was recorded for protective coatings in North America and Asia, while the Marine arm was seen stabilizing after a previous strong year.

The other major divisions struggled to match their 2024 performances, with Industrial Coatings sales down by 8%, while turnover for Powder Coatings and Automotive & Speciality Coatings was 6% lower in each case.

Specifically in the Powder Coatings sector, automotive and functional applications arising from Asia flourished, while in North America industrial and consumer applications were noted for delivering lower sales volumes.

In the Automotive and Specialty sector, the aerospace segment experienced high volume sales, but refinish sales were weaker in North America.

Volumes for the Industrial Coatings operations were down all-round in Q4 and for the whole of the year 2025.

Axalta Coating Systems’ Annual Performance

Axalta Coating Systems reported a decline in its annual sales in 2025, which fell from US$ 5,276 million in 2024 to US$ 5,117 million in 2025, a fall of 3%, while its income from operations rose from US$ 706 million in 2024 to US$ 735 million last year (up 4%). Net income, however, fell slightly from US$ 391 million to US$ 379 million, due to significantly greater tax provisions for 2025 relative to the preceding year (which equates to another 3% fall). The collective annual data from the company’s two principal divisions is tabulated below:

Quarterly and Annual Sales at Axalta Coating Systems (US$ Millions)

Source: Axalta Quarterly Releases from 2025 (NB: some figures were calculated and some reported figures were rounded.)

In the last quarter of 2025, Performance Coatings sales at Axalta trended downwards in volume terms overall in North America and Europe, but this was partially reduced by exchange gains. Industrial sales in the last quarter of the year suffered a 5% decrease in value terms, with favourable exchange factors being unable to compensate for softer demand from industry.

In the Mobility Coatings sector, sales were up by 1% in the last quarter, with volumes in decline in North America. Lower sales volumes were also recorded in sales to the Light Vehicles segment in Europe and North America in the fourth quarter, but a positive price/mix effect nudged sales in the quarter 1% higher.

When the two companies are merged, as they announced in November 2025, the new super-company will be starting off with annual sales of around US$ 17 billion, fed by a wealth of about 100 well-known and complementary brands contributed from both sides. There will be 173 manufacturing sites and 91 research and development centres around the world.

Upon closing, the combined company will have a one-tier board of 11 directors, led by Rakesh Sachdev, current chair of the Axalta Board of Directors. Ben Noteboom, current chairman of the AkzoNobel Supervisory Board, will serve as vice-chair.

Current AkzoNobel CEO Greg Poux-Guillaume will serve as CEO of the combined company, and current Axalta CEO Chris Villavarayan will serve as deputy CEO.

The combined company will assume a new name and ticker symbol, which will be announced in due course, and will have dual headquarters in Amsterdam and Philadelphia. The transaction is due to be finalized in late 2026 or early 2027.