Akzo Nobel (AKZA) Q2 2025 earnings summary

Executive summary

• Q2 2025 organic sales remained flat year-over-year, with volumes down 1% and pricing up 2%, while revenue declined due to adverse currency effects.

• Adjusted EBITDA reached €393 million (or €417 million adjusted for Forex), with margin expanding to 15%, up 60 bps year-over-year.

• Achieved key strategic milestones, including the sale of most Indian businesses at 25x 2025 EBITDA, expected to close in Q4, unlocking significant value and retaining a coatings royalty stream.

• SG&A efficiency program fully implemented, with five additional site closures announced and a workforce reduction of over 2,000 FTEs, delivering over €150 million annualized savings.

• Free cash flow for Q2 was €162 million, net of €49 million restructuring-related outflows, and net cash from operating activities increased to €234 million.

Financial highlights

• Q2 2025 revenue was €2,626 million, down 6% year-over-year, mainly due to FX headwinds.

• Adjusted EBITDA margin improved to 15.0% from 14.4% year-over-year.

• Adjusted earnings per share from continuing operations increased to €1.13 in Q2 2025.

• Return on investment declined to 13.2% from 13.7% year-over-year, impacted by FX.

• Free cash flow for Q2 was €162 million, up from €77 million year-over-year.

Outlook and guidance

• Full-year adjusted EBITDA guidance unchanged at constant currency; at current rates, €1.55 billion becomes €1.48 billion, which is expected to be exceeded.

• Midterm ambition to achieve adjusted EBITDA margin above 16% and ROI between 16% and 19%.

• Leverage ratio targeted below 2.5x by year-end, supported by India divestment proceeds.

• Gross savings target of €170 million and CAPEX of €350 million for 2025.

• Pricing visibility high for H2; most increases already implemented.