AkzoNobel N.V. announced its full-year 2025 results, highlighting a 5% revenue decline to €10.16 billion, driven by lower volumes and negative currency effects. Despite these challenges, the company expanded its adjusted EBITDA margin to 14.2% (up from 13.8% in 2024), supported by €98 million in cost savings from efficiency programs.

The company reported Adjusted EBITDA at €1,444 million, within 1% of initial guidance. Adjusted EBITDA margin expanded to 14.2%.

Meanwhile, operating income rose to €1.16 billion (up from €917 million in 2024), significantly boosted by the divestment of its Indian subsidiary. Net Cash from operating activities increased to €915 million.

Greg Poux-Guillaume, CEO, AkzoNobel 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.”

Outlook

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.