Akzo Nobel (AKZA) Q3 2025 earnings summary

Executive summary

• Q3 adjusted EBITDA was €385 million (or €411 million at constant forex), with a 15.1% margin, up 30 bps year-on-year; organic sales grew 1% while volumes declined 1% and price/mix increased 1%.

• SG&A cost reduction program completed, delivering annualized savings over €175 million and net headcount reduced by 2,500 since mid-2024.

• Free cash flow rose to €265 million in Q3, with leverage improved to 2.8x and projected to be slightly above 2x by year-end post-India transaction.

• The India divestment is on track for completion in December 2025, with all regulatory approvals granted and €70 million net proceeds from a 5% block sale already received.

• A €300 million provision was recognized for the ongoing Ichthys LNG litigation in Australia, impacting operating income.

Financial highlights

• Q3 2025 revenue was €2,547 million, down 5% year-on-year due to a -5% forex impact; organic sales up 1%.

• Decorative Paints organic growth +2% with a 17.4% margin; Performance Coatings organic sales down 1% with a 14.0% margin.

• Adjusted net income from continuing operations for Q3 was €172 million; adjusted earnings per share from continuing operations was €1.01.

• Free cash flow for Q3 was €265 million; YTD free cash flow at €161 million, both higher than prior year.

• Operating working capital at 16.7% of revenue, down from 17.7% a year ago.

Outlook and guidance

• Full-year adjusted EBITDA expected around €1.48 billion, with Q4 trends similar to Q3: volumes slightly down, price/mix slightly up, and continued efficiency gains.

• Currency headwinds expected to persist in Q4, with a €30 million impact per quarter at current rates.

• Leverage expected to remain slightly above 2x by year-end; stable dividend policy and €400 million share buyback planned post-India transaction.