AkzoNobel’s Q3 profitability improves to 15.1%

The paint and coatings manufacturer AkzoNobel has published its financial results for the third quarter of 2025.

Chief executive officer Greg Poux-Guillaume says: “We’ve had a resilient third quarter, with profitability up to 15.1 per cent on disciplined pricing and continued benefits from our SG&A and industrial excellence programmes.

“Despite continued macro-economic softness and the translation effect of a strong euro, we’ve delivered on consensus. We’re progressing on our strategic roadmap as our teams continue to execute with agility and focus.”

The firm reports an adjusted EBITDA margin of 15.1 per cent, compared with 14.8 per cent in the same period last year. Adjusted EBITDA was €385m, which includes a €26m adverse currency impact.

Organic sales increased by 1 per cent, while overall revenue fell 5 per cent due to currency effects. Net cash from operating activities was positive at €331m, up from €294m in 2024. AkzoNobel reported revenue of €2.55bn for Q3 2025, compared with €2.67bn in Q3 2024.

Poux-Guillaume adds: “The sale of Akzo Nobel India is on track to close in December 2025 as all regulatory approvals have been granted. We remain committed to our strategy of unlocking value and are positioning the company for more profitable growth.”

Operating income was affected by a provision for a long-running court case over the Australian Ichthys natural gas project, resulting in a €300m charge. The Federal Court of Australia’s judgment on the case is not expected before mid-2026, with possible appeals extending the timeline.

For full-year 2025, AkzoNobel expects adjusted EBITDA of around €1.48bn, assuming current market conditions and exchange rates. In the mid-term, the company aims to achieve an adjusted EBITDA margin above 16 per cent and a return on investment between 16 per cent and 19 per cent.

Following the completion of the India divestment, leverage is projected to be slightly above two times net debt to adjusted EBITDA by the end of 2025, with a mid-term goal of maintaining leverage around two times.

The full quarterly report is available online.