AkzoNobel’s adjusted margin rises while operating loss widens
AkzoNobel raised its third-quarter adjusted earnings margin to 15.3 per cent, its sixth consecutive quarterly improvement. Pricing supported organic sales growth, while reported revenue was broadly unchanged. The Dutch paints group’s operating loss nevertheless widened to 73 million euros, affected by transactions involving its businesses in Russia and Pakistan.
Economics & Markets··Evening
Adjusted earnings improve as revenue stays flat
AkzoNobel, the Dutch paint and coatings manufacturer, raised its adjusted third-quarter earnings margin from 15.1 per cent to 15.3 per cent. This was its sixth consecutive quarter of margin expansion. The company reported organic sales growth of 2 per cent alongside higher pricing. The organic comparison excludes changes in consolidation, exchange rates and hyperinflation accounting.[1], [2]
Revenue reached 2 billion 538 million euros, compared with 2 billion 547 million euros a year earlier. Adjusted earnings before interest, tax, depreciation and amortisation increased from 385 million euros to 388 million euros. Organic growth in this adjusted earnings measure amounted to 15 million euros. Chief executive Greg Poux-Guillaume attributed the improvement to pricing and cost savings.[1]
Operating loss widens and cash generation falls
The operating loss widened from 29 million euros to 73 million euros. The removal of Russian entities from the consolidated accounts and the Pakistan divestment affected operating income. Net cash from operating activities fell from 331 million euros to 187 million euros. The release’s quarterly figures were unaudited.[1]
The company signed binding agreements to sell its Southeast Asian decorative paints businesses for an enterprise value of 1.35 billion dollars. Management put the valuation at 21 times those operations’ 2025 earnings before interest, tax, depreciation and amortisation. The agreements cover businesses being sold rather than an increase in quarterly sales revenue.[1]
Annual outlook holds at about 1.47 billion euros
AkzoNobel maintained its full-year adjusted earnings outlook at approximately 1.47 billion euros. The calculation uses year-end 2025 exchange rates and adjusts for Asian liquid coatings divestments. Management expects an improvement of 100 million euros at constant currencies. It also retained a year-end net debt ratio expectation of approximately 2 times adjusted earnings.[1]
The merger with Axalta, another coatings manufacturer, remains expected to close in early 2027, subject to regulatory approvals. Management reiterated medium-term ambitions for an adjusted margin above 16 per cent and an adjusted return on average invested capital of 16–19 per cent. Those targets describe intended future performance rather than the results achieved in the September quarter.[1]
