Akzo Nobel (AKZA) Q3 2026 earnings summary

Executive summary

• Q3 organic sales grew 2%; adjusted EBITDA was €388m and margin rose 20 bps to 15.3%, marking six consecutive quarters of margin expansion.

• YTD organic sales rose 1%, while organic volumes declined 1%; market recovery remained delayed.

• Southeast Asia Decorative Paints sale agreements advanced, and the proposed Axalta merger remained on track for early 2027, subject to approvals.

Financial highlights

• Q3 revenue was €2,538m versus €2,547m; organic sales rose 2% on pricing +5%, offset by volumes -2% and mix -1%. Scope reduced revenue 5%; FX/Other added 3%.

• Q3 adjusted EBITDA was €388m versus €385m, up €15m at comparable scope and constant currencies; adjusted margin increased to 15.3% from 15.1%.

• Q3 operating income was impacted by Russian deconsolidation (€230m) and the Pakistan divestment (€46m), as well as merger-related costs.

• 9M revenue fell 4% to €7,513m; adjusted EBITDA was €1,131m, with €54m organic growth.

• Q3 free cash flow was €119m and 9M free cash flow €83m; €69m of YTD transaction costs weighed on cash flow.

Outlook and guidance

• FY 2026 adjusted EBITDA guidance remains around €1.47bn; organic volumes are expected to decline 1%.

• Pricing is expected to fully offset raw-material and logistics inflation; raw-material inflation was high single digits in Q3 and is expected at a similar level in Q4.

• FY 2026 identified-item cash outflow is ~€300m, including merger costs; capex is guided at €275m, with leverage around 2x and dividend stable.

• Mid-term targets include adjusted EBITDA CAGR >6%, margin >16%, volume growth CAGR +LSD%, and adjusted return on average invested capital of 16%–19%.