Paint powerhouse Hempel A/S has delivered its strongest financial performance ever, reporting free cash flow of €259 million and an adjusted EBITDA margin of 18.2%, the highest in company history. Adjusted EBITDA reached €394 million, underscoring the company’s disciplined financial management and operational strength.

 

Total revenue in 2025 hit €2.165 billion, with organic growth of 3.4% in fixed currency, despite negative impacts from currency fluctuations, primarily the weaker U.S. dollar. Growth was led by robust volume gains, particularly in the Marine segment.

 

“I am very pleased with our 2025 performance – a year in which we delivered our best free cash flow to date while continuing to invest in innovation and customer value,” said Peter la Cour Gormsen, Executive Vice President and CFO at Hempel A/S. 

 

“The external environment shifted significantly in 2025, but despite these headwinds, we managed to deliver strong financial results. Thanks to our unique solutions, strong brands and competent colleagues around the world, we are building on a position of strength and enter 2026 with clear opportunities to grow and deliver even greater value for our customers.”

 

Hempel strengthened its financial foundation with disciplined cash flow management, nearly doubling free cash flow from €139 million in 2024 while maintaining strategic investments. This balanced approach allowed the company to pursue long-term growth alongside strong short-term performance.

 

Hempel launched three major innovations in 2025: Hempaguard NB for Marine newbuilding, Hempafire Extreme for infrastructure fire safety, and Farrow & Ball’s Flat Eggshell interior finish.

 

The Marine segment surged 9.8% organically to €750 million, marking record performance with double-digit volume growth in drydock and newbuilding markets. Strong demand for premium solutions and the global newbuilding boom fueled growth.

 

The Energy & Infrastructure segment rose 0.1% organically to €775 million, as gains in Infrastructure offset weaker Energy sales, particularly in oil and gas markets in the U.S. and Middle East. Growth in Asia-Pacific helped counterbalance challenges, with record production and delivery levels.

 

Decorative paints grew 0.6% organically to €640 million, led by luxury brand Farrow & Ball and Crown Paints in the UK mid-market. Farrow & Ball expanded its U.S. presence and introduced a new studio retail format alongside an award-winning e-commerce experience.

 

Hempel continued advancing its climate ambitions, cutting Scope 1 and 2 CO2e emissions by 70% since 2019, with a 90% reduction targeted by 2026. Scope 3 emissions, covering 99% of the company’s footprint, are increasingly tracked, while supplier screening now includes a 20% sustainability weighting.

 

By year-end, Hempel’s low-emission coatings helped customers save approximately 35.9 million tonnes of CO2. Gender diversity targets were also exceeded, with women now holding 34% of leadership roles and 34% of the total workforce.

 

Hempel enters 2026 on a historically strong footing, despite ongoing complex market conditions. With its new strategy, Accelerate to Win, the company aims to sharpen commercial focus and speed up execution. Hempel expects low-single-digit organic revenue growth and an adjusted EBITDA margin around 18% in 2026.