AkzoNobel has reported its results for the second quarter of 2025. The paint and coatings manufacturer reports an adjusted EBITDA margin increased to 15 per cent, up from 14.4 per cent in the same quarter of 2024.
Adjusted EBITDA totalled €393m, which included a €24m negative currency impact. Organic sales remained flat while pricing rose by 2 per cent. Revenue has declined 6 per cent to €2.63bn, which the firm attributes to adverse currency movements.
The company generated €234m in net cash from operating activities in Q2 2025, compared with €151m in Q2 2024. AkzoNobel also signed a binding agreement to sell AkzoNobel India to the JSW Group, with the transaction expected to close in the fourth quarter of 2025.
In January, AkzoNobel outlined a suite of changes that will result in a ‘net workforce adjustment’ in France, with up to 211 employees being laid off and 29 jobs created. Implementation of the plan is scheduled to occur gradually through to the end of 2026.
The firm recently named Fredrik Westin as its incoming chief financial officer, with effect from 1 January 2026.
Over the first half of 2025, adjusted EBITDA reached €750m, including a €31m currency headwind. The adjusted EBITDA margin stood at 14.3 per cent, slightly above the 14.1 per cent reported for the first half of 2024. Organic sales were unchanged, while revenue declined 3 per cent due to currency effects. Price increases and cost-saving measures offset lower volumes and inflationary pressures.
Net cash from operating activities for the half-year was €122m, an improvement over the negative €19m reported a year earlier.
AkzoNobel chief executive Greg Poux-Guillaume says: “Our profitability increased in Q2, driven by pricing discipline and the structural benefits from our SG&A [selling, general and administrative] and industrial efficiency programmes. This was achieved against a backdrop of significant currency headwinds, due to the strength of the euro and generally tepid markets, highlighting the strength of our businesses.”
He adds: “We’re delivering on our value creation milestones, with the sale of AkzoNobel India Limited to the JSW Group representing an important first step in the strategic review of our portfolio. We’ll continue to unlock value and position the company for stronger and more focused growth.”
AkzoNobel maintains its full-year 2025 guidance at constant currencies, forecasting adjusted EBITDA to exceed €1.48bn. For the mid-term, the company aims for an adjusted EBITDA margin above 16 per cent and return on investment between 16 and 19 per cent, supported by organic growth and operational improvements.
All figures reported are unaudited and should be reviewed in conjunction with the full quarterly report, which includes the IAS34 condensed consolidated financial statements.
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