Akzo Nobel NV

Latest Results (17.07.2026):

Akzo Nobel NV — Q1 2026: Revenue fell 9% year‑on‑year to €2,386m (organic sales -1%) as strong euro translation (-5%) and the India divestment (-3%) weighed on top‑line. Operating income was €177m and adjusted EBITDA €345m (margin 14.5%, +80bps). Net income attributable to shareholders was €93m (EPS €0.54; adjusted EPS €0.89). Net cash from operating activities improved to an outflow of €86m and net debt stood at €3,077m (leverage 2.1x) at March 31, 2026.

Top‑line drivers

Revenue €2,386m (-9% YoY). Translation effects from a stronger euro reduced revenue by ~5ppt and the India divestment by ~3ppt; organic sales were down 1% overall with volumes strong in Asia but weaker in Europe and North America.

Profitability (adjusted EBITDA)

Adjusted EBITDA €345m (-3% reported), adjusted EBITDA margin expanded to 14.5% (Q1 2025: 13.7%). Excluding FX (-€23m) and the India divestment (-€13m), adjusted EBITDA was up ~€24m year‑on‑year, driven by gross margin expansion.

Operating income, identified items and EPS

Operating income €177m (reported down vs €192m); excluding FX (-€19m) and the India divestment (-€11m) operating income rose ~€15m. Identified items were a €77m charge. Net income attributable €93m; basic EPS €0.54 and adjusted EPS from continuing operations €0.89.

Cash flow and balance sheet

Net cash from operating activities was an outflow of €86m (improved vs -€112m in Q1 2025). Free cash flow was -€144m; capex €58m. Net debt €3,077m at March 31, 2026 (leverage ratio 2.1x); company expects leverage around ~2x by end‑2026 and remains committed to investment‑grade rating.

Performance by segment

Performance Coatings: revenue €1,427m (-10% YoY; organic -3%), adjusted EBITDA €196m and margin 13.7%. Decorative Paints: revenue €959m (-7% YoY; organic +2%), adjusted EBITDA €166m and margin 17.3% (notable margin improvement driven by pricing/gross margin).

Outlook and strategic items

Company expects to deliver €100m adjusted EBITDA improvement in constant currencies and guides full‑year 2026 adjusted EBITDA at or above €1.47bn (on 2025 FX). Mid‑term targets: adjusted EBITDA margin above 16% and ROI 16–19%. Merger with Axalta expected late 2026/early 2027 (subject to approvals). Agreement signed to sell AkzoNobel Pakistan (enterprise value ~€50m), expected to close in H2 2026.

FX, divestments and other impacts

Currency translation was a meaningful headwind in Q1 (≈-5% revenue impact and ~-€23m on adjusted EBITDA). The India divestment reduced revenue by ~3% and had ~-€11m operating income and ~-€13m adjusted EBITDA impact. Identified items and hyperinflation adjustments also affected comparability.