AkzoNobel Reports Margin Gains and Portfolio Shifts
Akzo Nobel N.V. published its 2025 annual report, outlining financial performance, sustainability progress and strategic developments across its global paints and coatings businesses.
The company reported 2025 revenue of €10,158 million, compared with €10,711 million in 2024. Operating income increased to €1,164 million from €917 million, while adjusted EBITDA reached €1,444 million, resulting in an adjusted EBITDA margin of 14.2%, up from 13.8% the previous year. Earnings per share rose to €3.71. Net debt declined to €2,942 million, reducing the leverage ratio to 2.0 times net debt to adjusted EBITDA.
CEO Greg Poux-Guillaume described 2025 as a “banner year of operational execution” and a strategic turning point as the company progressed its industrial excellence program and advanced a proposed all-stock merger with Axalta Coating Systems Ltd.. The transaction, announced in November 2025, would create a combined global coatings company with anticipated annual run-rate cost synergies of approximately $600 million, subject to shareholder and regulatory approvals.
During the year, AkzoNobel completed the divestment of its India business, generating approximately €900 million in proceeds, and continued restructuring and site optimization initiatives aimed at delivering €300 million in industrial excellence benefits by 2027.
In sustainability, the company reported a 47% reduction in Scope 1 and 2 carbon emissions compared with its 2018 baseline, approaching its 2030 target of 50%. Suppliers meeting sustainability expectations reached 73%, while female executives represented 27% of leadership roles.
Segment performance reflected mixed end-market conditions. Decorative Paints revenue totaled €4,090 million, with adjusted EBITDA margin improving to 15.8%. Performance Coatings revenue reached €6,068 million, with adjusted EBITDA margin of 13.9%, impacted by volume pressure in North America and identified items related to restructuring and litigation provisions.
Looking ahead, the company expects adjusted EBITDA improvement of €100 million in constant currencies for 2026 and reaffirmed mid-term ambitions of an adjusted EBITDA margin above 16% and return on investment between 16% and 19%.
The full 2025 report is available on the company’s website.
Related PCI Coverage
• AkzoNobel and Axalta previously announced a proposed merger of equals, outlining leadership structure and the expected approval process.
• PCI examined what the proposed AkzoNobel–Axalta merger could mean for the future of the paint and coatings industry, including comparisons to past transactions involving Sherwin-Williams and PPG.
• PCI’s Chief Editor reviewed the first week of industry and market reaction following the merger announcement.
• Two more stories about investor reactions can be found here:
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