AkzoNobel reported lower revenue but improved margins in the first quarter of 2026, citing pricing actions and cost efficiencies. The coatings manufacturer said revenue was down 9% year-over-year, with organic sales declining 1%, while adjusted EBITDA margin increased to 14.5% from 13.7%.
“We delivered a strong quarter of execution in a turbulent market, with adjusted EBITDA up 7% and margin up 80 bps, the fourth consecutive quarter of margin expansion,” CEO Greg Poux-Guillaume said in a statement. “This was achieved through positive pricing and cost efficiency, both of which will continue to support our performance for the rest of the year.”
Revenue for the quarter was €2.4 billion ($2.8 billion), operating income was €177 million ($207 million), and adjusted EBITDA totaled €345 million ($404 million). The company said both metrics improved year-over-year when excluding foreign-exchange impacts and the divestment of its India business.
AkzoNobel said geopolitical developments, including conflict in the Middle East, are affecting supply costs, but the company is maintaining its full-year guidance. Previously announced price increases are expected to offset anticipated cost impacts, the company said. The manufacturer also reported progress toward its planned merger with Axalta, noting that filings milestones have been met and that shareholders are expected to vote at a midyear general meeting.
AkzoNobel expects €100 million ($117 million) of adjusted EBITDA improvement in constant currencies for full-year 2026. The company said adjusted EBITDA is projected to be at or above €1.47 billion ($1.72 billion) for the year, and it continues to target a midterm adjusted EBITDA margin above 16% supported by organic growth and operational improvements. The Axalta merger remains subject to shareholder and regulatory approvals, with closing expected in late 2026 or early 2027.
