AkzoNobel has published its results for the second quarter of 2026, reporting higher operating income and an improved adjusted EBITDA margin compared with the same period last year.
Organic sales at the paint and coatings giant increased by 2 per cent, driven by pricing, while volumes were stable. Revenue declined by 1 per cent year on year.
The news comes after Japan’s Nippon Paint Holdings offered €7.5bn to AkzoNobel’s decorative coatings business. The move marks Nippon’s latest attempt to scupper a proposed all-share merger between the Dutch company and US rival Axalta Coating Systems.
Operating income at AkzoNobel rose to €251m from €214m in the second quarter of 2025. Organic adjusted EBITDA increased by €18m, supported by pricing, while the adjusted EBITDA margin improved to 15.4 per cent from 15.0 per cent. Net cash from operating activities was €170m, compared with €234m a year earlier.
For the first half of 2026, organic sales were flat, while revenue fell by 5 per cent as a result of adverse currency movements.
Operating income for the six-month period increased to €428m from €406m in the first half of 2025. Organic adjusted EBITDA rose by €39m, again driven by pricing, and the adjusted EBITDA margin increased to 14.9 per cent from 14.3 per cent. Net cash from operating activities totalled €84m, down from €122m in the same period last year.
CEO Greg Poux-Guillaume says: “AkzoNobel had another strong quarter, with organic sales, operating income and adjusted EBITDA all increasing. Adjusted EBITDA margin was up by 40 base points, which marks the fifth consecutive quarter of increase. This demonstrates that our plan is delivering value regardless of market conditions. Robust pricing and a relentless focus on cost efficiency continue to support our performance.
“We’re delivering today while laying the foundations for a brighter tomorrow. We achieved our ambition of reducing carbon emissions from our operations by 50 per cent, four years ahead of our 2030 target. Our merger with Axalta is progressing as planned, with the shareholder vote on August 5 and an expected closing at the end of 2026 or early 2027. And we remain on track to achieve our full-year targets.”
The company says that, based on current market visibility, including geopolitical developments and prevailing trading conditions, it expects adjusted EBITDA to improve by €100m in constant currencies during 2026.
It therefore expects full-year adjusted EBITDA to reach at least €1.47bn, based on year-end 2025 exchange rates and adjusted for the India divestment.
Over the medium term, AkzoNobel is targeting an adjusted EBITDA margin of more than 16 per cent and a return on investment of between 16 per cent and 19 per cent.
AkzoNobel expects leverage to be around two times net debt to adjusted EBITDA by the end of 2026. Over the medium term, it intends to maintain leverage at around that level while retaining an investment-grade credit rating.
The proposed merger with Axalta remains subject to shareholder and regulatory approvals. Completion is expected in late 2026 or early 2027.
The post AkzoNobel reports higher Q2 profitability appeared first on Marine Industry News.
Leave a Reply