AkzoNobel Reports Q4 and FY 2025 Profit Margin Growth

Q4 2025 Performance

AkzoNobel reported a 1% decline in organic sales due to lower volumes, with a 9% revenue drop from FX translation. Despite this, operating income rose to €787 million, and adjusted EBITDA margin increased to 13.0%, driven by efficiency actions. The company completed the divestment of Akzo Nobel India Ltd, generating €922 million in proceeds.

Full-Year 2025 Results

For the full year, organic sales remained flat as price/mix gains offset volume declines, leading to a 5% revenue decrease. Adjusted EBITDA reached €1,444 million, close to initial guidance, with a margin expansion to 14.2% due to a €98 million OPEX reduction. Operating income increased to €1,164 million, supported by divestment gains and restructuring efforts. Net cash from operating activities improved to €915 million, aided by better working capital management.

Strategic Developments

AkzoNobel proposed an all-stock merger with Axalta, aiming to create a leading global coatings company. The merger is expected to generate significant synergies and enhance value for customers, shareholders, and employees. The company ended the year with a leverage ratio of 2x net debt/adjusted EBITDA, aligning with its mid-term goals.

Outlook for 2026

Looking ahead, AkzoNobel does not foresee a substantial market recovery in 2026, anticipating a weak first half with potential improvement in the second half due to easier comparisons. The company plans to continue its efficiency measures to support performance and progress towards mid-term targets.