Hempel reported improved financial performance in its latest annual results, supported by strong marine coatings demand, disciplined cost management and continued investment in innovation.

The company reported free cash flow of €259 million in 2025, compared with €139 million in 2024. Adjusted EBITDA reached €394 million with an adjusted EBITDA margin of 18.2%, the highest in the company’s history.

Total revenue for the year was €2,165 million, with organic sales growth of 3.4% in fixed currency and adjusted for divestments. Reported sales were affected by foreign exchange movements, primarily related to U.S. dollar depreciation.

“I am very pleased with our 2025 performance — a year in which we delivered our best free cash flow to date while continuing to invest in innovation and customer value,” said Peter la Cour Gormsen, executive vice president and chief financial officer at Hempel. “The external environment shifted significantly in 2025, but despite these headwinds, we managed to deliver strong financial results.”

Marine coatings delivered the company’s strongest segment performance. Organic sales in the marine business grew 9.8% to €750 million, driven by double-digit volume growth in drydock and newbuilding activity and strong demand for premium coating technologies.

Sales in Hempel’s Energy & Infrastructure segment grew 0.1% organically to €775 million. Infrastructure demand supported results through passive fire protection systems, waterproofing solutions and corrosion protection coatings, while energy market activity remained softer, particularly in the United States and Middle East.

The Decorative segment grew 0.6% organically to €640 million, supported by demand for Farrow & Ball luxury decorative coatings and Crown Paints in the United Kingdom.

During the year, Hempel introduced several new coating technologies including Hempaguard NB for marine newbuilding, Hempafire Extreme for infrastructure fire protection and Farrow & Ball Flat Eggshell interior coatings.

The company also reported continued progress on environmental goals, including a 70% reduction in Scope 1 and 2 emissions compared with its 2019 baseline. Hempel estimates its coating technologies helped customers reduce approximately 35.9 million tonnes of CO₂ emissions during 2025.

Looking ahead, the company expects low-single-digit organic revenue growth in 2026 and an adjusted EBITDA margin of around 18%.