In its latest quarterly report, Dutch paint behemoth AkzoNobel reported improved profit margins in the last quarter of 2025, despite lower sales volumes.
The Amsterdam-based paints and coatings company reported operating income of €787 million ($1.16 billion in CAD) in 4Q 2025, up from €127 million ($187 million in CAD) a year earlier. Adjusted EBITDA totalled €309 million ($454 million in CAD), while adjusted EBITDA margin increased to 13% from 12.3%. Revenue declined 9% to €2.37 billion ($3.48 billion in CAD), largely due to foreign exchange effects and lower volumes.
For the full year, adjust edearnings before interest, taxes, depreciation and amortization (EBITDA) reached €1.44 billion ($2.12 billion in CAD), up to 14.2% from 13.8%. Revenue declined 5% to €10.16 billion ($14.94 billion in CAD), while operating income rose to €1.16 billion ($1.71 billion in CAD). Net cash from operating activities increased to €915 million ($1.35 billion in CAD) from €673 million ($989 million in CAD) in 2024.
“In a year when markets went largely backwards, we continued to improve our profitability,” CEO Greg Poux-Guillaume said in a press statement. “This reflects strong execution, cost reductions and improved working capital.”
During the quarter, the company completed the sale of its India business for €922 million ($1.36 billion in CAD), contributing €655 million ($963 million in CAD) to operating income. Leverage stood at about twice the net debt to adjusted EBITDA at year-end.
“This is a testament to the strength of our operational execution, with our plans delivering an above-target OPEX and headcount reduction and working capital improvement," Poux-Guillaume added.
The proposed all-stock merger with Axalta remained subject to shareholder and regulatory approvals, with closing expected in late 2026 or early 2027.
Looking ahead, management said market conditions are unlikely to improve materially in 2026. A weak first half is expected, with some improvement in the second half. Adjusted EBITDA for 2026 is expected to be at or above €1.47 billion ($2.16 billion in CAD), excluding the India divestment and any impact from the proposed Axalta merger.
“We also initiated our next wave of value creation with a proposed all-stock merger with Axalta," the CEO noted.
The proposed all-stock merger with Axalta remains subject to shareholder and regulatory approvals, with closing expected in late 2026 or early 2027.
Adjusted EBITDA for 2026 is expected to be at or above €1.47 billion, excluding the India divestment and any impact from the proposed Axalta merger.
Looking ahead, management said market conditions are unlikely to improve materially in 2026. A weak first half is expected, with some improvement in the second half.
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