Akzo Nobel (AKZA) Q3 2025 earnings summary

Executive summary

• Q3 adjusted EBITDA was €385 million, with margin up 30bps to 15.1% year-on-year, and organic sales grew 1% despite a 5% revenue decline from currency effects.

• Free cash flow improved to €265 million, leverage at 2.8x, and year-end leverage projected slightly above 2x after India divestment closes in December.

• SG&A cost reduction program delivered annualized savings over €175 million, with 2,500 positions reduced since mid-2024.

• India business disposal is on track, with a 5% block sale generating €70 million and main transaction closing expected in December.

• A €300 million provision was recognized for the Australian (Ichthys) legal case, impacting operating income.

Financial highlights

• Q3 2025 revenue was €2,547 million, down 5% year-on-year; organic sales up 1%, with price/mix up 1% and volumes down less than 1%.

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

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

• Free cash flow for Q3 was €265 million, up from €217 million in Q3'24.

• Adjusted EBITDA for Q3 was €385 million (2024: €394 million); YTD adjusted EBITDA was €1,135 million (2024: €1,157 million).

Outlook and guidance

• Full-year adjusted EBITDA expected around €1.48 billion, on track despite forex headwinds and market uncertainties.

• Q4 volumes expected slightly down, with similar currency impact as Q3; efficiency measures to protect margins.

• Leverage expected slightly above 2x by year-end post-India transaction; stable dividend policy maintained.