Akzo Nobel (AKZA) Q2 2026 earnings summary

Executive summary

• Organic sales grew 2% year-over-year in Q2 2026, driven by a 3% price increase and stable volumes, despite a 1% negative mix impact and revenue down 1% due to FX and divestments.

• Adjusted EBITDA reached €398 million in Q2 2026, up 5% at comparable scope, with margin expanding to 15.4% for the fifth consecutive quarter.

• Merger preparations with Axalta are progressing, with a shareholder vote scheduled for August 5 and closing expected end of 2026 or early 2027; substantial synergy targets identified.

• Achieved a 50% reduction in Scope 1 and 2 carbon emissions, four years ahead of schedule.

• Operating income increased 17% year-over-year in Q2 to €251 million; half-year operating income up 5% to €428 million.

Financial highlights

• Q2 2026 revenue was €2,589 million, down 1% year-over-year due to FX and divestments.

• Adjusted gross margin improved to 42.7%, up 70 basis points year-over-year.

• Adjusted EBITDA margin rose to 15.4% in Q2 2026, up 40 basis points year-over-year.

• Free cash flow for Q2 2026 was €108 million, down from €162 million in Q2 2025, supported by higher EBITDA and improved working capital.

• Adjusted earnings per share from continuing operations was €1.07 in Q2 2026, down from €1.13 in Q2 2025.

Outlook and guidance

• Full-year 2026 adjusted EBITDA expected at or above €1.47 billion, with Q3 adjusted EBITDA expected around €390 million and volumes broadly flat.

• Free cash flow trajectory unchanged, with working capital targeted at 14.5% of revenue and CapEx planned at €300 million.

• Leverage ratio targeted around 2x net debt/adjusted EBITDA by year-end 2026.

• Net industrial program benefit of €90 million expected, with identified items cash out of ~€250 million (including merger costs).

• Pricing actions to continue to offset raw material and logistics inflation, which is moderating in some regions but remains volatile.