Coatings manufacturer AkzoNobel reported third quarter financial results today.
Organic sales grew 2% on pricing over the same quarter a year prior, the company stated in a press release. Organic adjusted EBITDA growth was €15 million ($17.1 million). Adjusted EBITDA margin increased to 15.3% (2025: 15.1%). Net cash from operating activities was positive €187 million ($213.4 million). Binding agreements were signed to sell Deco Paints Southeast Asia for $1.35 billion.
“AkzoNobel delivered another strong quarter, with organic sales and adjusted EBITDA both increasing,” CEO Greg Poux-Guillame said in the release. “Our sixth consecutive quarter of margin expansion confirms our ability to realize pricing in challenging markets and to deliver on our ambitious cost savings plan.
“We also announced the divestment of our decorative paints business in Southeast Asia, which successfully concludes the strategic review of our paints portfolio in Asia. At an enterprise value of 21x FY25 EBITDA — more than twice our current trading multiple — it unlocks significant value, as did the previous sale of our liquid coatings businesses in India for 25x EBITDA. Meanwhile, our merger with Axalta is firmly on track, with regulatory approvals advancing and closing expected in early 2027.”
For its outlook, “based on current market visibility, including current geopolitical developments, and at prevailing trading conditions,” the company expects to deliver around €100 million ($114 million) of adjusted EBITDA improvement in constant currencies. As a result, adjusted EBITDA for the full-year 2026 is expected to be around €1.47 billion ($1.7 billion), based on year-end 2025 exchange rates and adjusted for divestments of our liquid coatings businesses in Asia.
AkzoNobel said that for the midterm, it aims to expand profitability to deliver an adjusted EBITDA margin of above 16% and an adjusted return on average invested capital between 16% and 19%, underpinned by organic growth.
The company expects leverage to be around two times net debt/adjusted EBITDA by the end of 2026. In the midterm, it aims to maintain leverage around two times while remaining committed to an investment-grade credit rating.
