Quarterly Report: AkzoNobel exceeds expectations in face of global headwinds

Toronto, Ontario -- In the face of severe market headwinds, a European industrial paint company outperformed expectations thanks to a significant cost-cutting campaign.

In its Q1 report, the Dutch paint conglomerate AkzoNobel reported stronger-than-expected financial results. The company cited cost control measures and a pricing strategy as key drivers for its success — which came in spite of flat organic sales and ongoing global uncertainty.

The paint and coatings giant posted an adjusted earnings before interest, taxes, depreciation and amortization of €357 million ($564 million). This was down only slightly from the previous quarter in which the company generated €363 million (CAD $574 million). 

Total revenue for Q1 also dipped slightly on a year-over-year basis. In the first quarter of 2025, AkzNobel earned €2.61 billion (CAD $4.13 billion), down from €2.64 billion (CAD $4.17 billion) in the first quarter of 2024. The company attributes the decline to currency fluctuations rather than operational under-performance. 

The most significant shifts came from the company’s belt-tightening efforts. Its operating income from €261 million (CAD $412 million) during the first quarter of last year to €192 million ($303 million) during the first quarter of 2025.

Despite these modest declines, Greg Poux-Guillaume (pictured), the company’s chief executive officer, said it is ahead of schedule on its internal efficiency programs. “Our efficiency measures are paying off, allowing us to compensate for softer markets and persistent inflation.”

AkzoNobel also noted negative cash flow from operating activities of €112 million (CAD $177 million), though this represented an improvement over Q1 2024, which saw a negative cash flow of €170 million (CAD $269 million).

Looking ahead, the company reaffirmed its full-year forecast, targeting adjusted EBITDA above €1.55 billion (CAD $2.45 billion). The long-term goal remains an adjusted EBITDA margin above 16 percent and return on investment between 16 percent and 19 percent.

AkzoNobel said it is continuing to mitigate supply chain and trade-related challenges through a new production strategy and procurement de-risking initiatives.