AkzoNobel: Flat Q2 Sales; Guidance Unchanged

Akzo Nobel N.V. (AKZA; AKZOY) publishes results for Q2 2025, noting that profitability is up 60 bps to 15% on strong efficiency actions.

Highlights Q2 2025 (compared with Q2 2024)

• Organic sales flat, pricing up 2%; revenue down 6% on adverse currencies
  
  
• Adjusted EBITDA €393 million, including €24 million adverse currency impact (2024: €400 million)
  
  
• Adjusted EBITDA margin expansion to 15.0% (2024: 14.4%) driven by efficiency actions
  
  
• Net cash from operating activities positive €234 million (2024: positive €151 million)
  
  
• Binding agreement signed to sell Akzo Nobel India to the JSW Group, expected to close in Q4

Highlights half-year 2025 (compared with half-year 2024)

• Organic sales flat; revenue down 3% on adverse currencies
  
  
• Efficiency actions ahead of schedule
  
  
• Adjusted EBITDA €750 million, including €31 million adverse currency impact (2024: €763 million)
  
  
• Adjusted EBITDA margin: 14.3% (2024: 14.1%)
  
  
• Higher pricing and cost reduction compensated for lower volumes and inflation
  
  
• Net cash from operating activities positive €122 million (2024: negative €19 million)

AkzoNobel CEO Greg Poux-Guillaume commented:

“Our profitability increased in Q2, driven by pricing discipline and the structural benefits from our SG&A and industrial efficiency programs. This was achieved against a backdrop of significant currency headwinds, due to the strength of the euro and generally tepid markets, highlighting the strength of our businesses.

“We’re delivering on our value creation milestones, with the sale of Akzo Nobel India Limited to the JSW Group representing an important first step in the strategic review of our portfolio. We’ll continue to unlock value and position the company for stronger and more focused growth.”

Outlook

AkzoNobel’s guidance, provided at constant currencies, remains unchanged. Subject to ongoing market uncertainties and adjusted for exchange rates as of the end of H1, the company expects to deliver adjusted EBITDA above €1.48 billion for full-year 2025. 

For the mid-term, AkzoNobel aims to expand profitability to deliver an adjusted EBITDA margin of above 16% and a return on investment between 16% and 19%, underpinned by organic growth and industrial excellence. 

The company targets leverage below 2.5 times net debt/adjusted EBITDA by the end of 2025 and around 2 times in the mid-term, while remaining committed to retaining a strong investment grade credit rating.

Source : AkzoNobel

Image : AkzoNobel

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