Amsterdam: Akzo Nobel N.V., the Amsterdam-listed paints and performance coatings group, outlined a cautious near-term outlook on the back of challenging end markets and adverse foreign exchange translation, even as it painted a more optimistic mid-term picture focused on margin expansion and strategic deals.
In its latest quarterly and full-year disclosures, the company said fourth-quarter revenue fell about 9% to €2.37 billion, with organic sales down 1% on weaker volumes as demand in core markets remained soft. Adjusted EBITDA eased slightly, though margins improved to 13.0% from the prior year on the back of cost efficiencies and operational discipline.
For full-year 2025, Akzo Nobel reported a 5% decline in revenue to €10.16 billion, with flat organic volumes. The company’s adjusted EBITDA margin expanded to 14.2% from 13.8% year-on-year, supported by €98 million in OPEX savings and working-capital improvements, while operating income climbed as divestments bolstered results.
Looking ahead to 2026, Akzo Nobel forecast adjusted EBITDA of around €1.47 billion at constant currencies, reflecting a planned roughly €100 million improvement. Management also reiterated a mid-term ambition to lift margins above 16% and sustain returns on investment between 16-19%, backed by ongoing efficiency programmes.
The company is also progressing on a proposed all-stock merger with U.S. coatings peer Axalta Coating Systems, aimed at creating a larger global coatings platform. The transaction—subject to regulatory and shareholder approvals—is expected to generate strategic synergies and deepen Akzo Nobel’s global footprint once closed in late 2026 or early 2027.
Akzo Nobel’s share price has reflected near-term mixed sentiment, with some pressure from subdued end markets and currency headwinds, even as investors weigh near-term softness against potential mid-term gains from cost actions and strategic realignment.