AkzoNobel has reported a stronger third quarter for 2025, with profitability rising to 15.1 per cent as the paints and coatings manufacturer delivered on cost savings and operational efficiency targets despite weaker currencies.
The company recorded adjusted EBITDA of €385 million (AUD$625 million), slightly down from €394 million (AUD$640 million) in the same quarter last year, but achieved a higher margin due to ongoing efficiency and pricing initiatives. Organic sales rose one per cent, although total revenue slipped five per cent to €2.55 billion (AUD$4.15 billion), reflecting adverse currency effects.
Chief executive officer Greg Poux-Guillaume said AkzoNobel’s focus on disciplined pricing and industrial excellence had enabled it to withstand global economic headwinds.
“We’ve had a resilient third quarter, with profitability up to 15.1 per cent on disciplined pricing and continued benefits from our SG&A and industrial excellence programs,” he said.
The company confirmed its divestment of AkzoNobel India Ltd. is on track to close in December after receiving all regulatory approvals.
For the full year, AkzoNobel expects to deliver adjusted EBITDA of around €1.48 billion (AUD$2.4 billion), with mid-term ambitions to lift margins above 16 per cent and achieve a return on investment between 16 and 19 per cent.
The quarter also included a €300 million (AUD$490 million) provision related to historic claims from the Ichthys project in Australia, linked to work completed between 2013 and 2015. The company remains insured for up to €500 million (AUD$820 million) in potential cash outflows, though the timing of the Federal Court’s judgment is uncertain and not expected before mid-2026.
AkzoNobel said it continues to target leverage of around two times net debt to adjusted EBITDA while maintaining its investment-grade credit rating.