Q1 2026 Highlights
Consensus beat, margin expansion on pricing and cost actions
Q1 2026 YoY
Org. Sales -1%; Revenue -9% including India disposal (-3%) and FX (-5%)
Price +1%, mix -1%, volumes -1%
Adj. Gross Margin 42.5%, +110bps
Adj. EBITDA margin 14.5%, +80bps
Adj. EBITDA €345m, +7% at comparable
scope (-€13m) and FX (-€23m) YoY
Highlights
Industrial program on track to be completed by year end: 3 sites closed in Q1
Deco Asia portfolio review: Pakistan sold for
14x EV/EBITDA, EV €50m. Closing in H2
€1.1bn dual tranche bond issued in March
Proposed merger with Axalta on schedule
Volume development
Growth in Asia and South America, NAM and Europe still slow
Q1'26 | ||
Powder Coatings | Continued growth in Asia; higher Architectural and Auto | +LSD% |
Marine & Protective | Protective strong in Asia; Marine lower on high comps | -LSD% |
Automotive & Specialty | Aero continues outperformance; NAM Refinish stable, growing in Asia | Flat |
Industrial Coatings | Growth in Coil; Packaging down | -LSD% |
Deco EMEA | Slow start to quarter, accelerated in March | -LSD% |
Deco LATAM | Brazil returned to growth, Colombia up | +LSD% |
Deco China | Solid performance throughout quarter | +MSD% |
Deco SE Asia | Outperformance in Vietnam continues; Indonesia improving | +HSD% |
AkzoNobel | -1% | |
Organic volumes YoY
Q1 business performance
Deco performing well, Coatings impacted by geopolitical instability
AkzoNobel
Coatings
Deco
(10)
Q1 revenue development % YoY
Q1 revenue development % YoY
Q1 revenue development % YoY
Organic sales:
-1%
(1) -
(5) -
Organic sales:
-3%
(2) (1)
(3)
(2)
(5) -
Organic sales:
+2%
-
2
Volumes Price/
mix
(7)
(5)
(4)
-
Volumes Price/
mix
M&A
FX Other Revenue
Volumes Price/
(9)
mix
M&A
FX Other Revenue
M&A
FX Other Revenue
Q1'25 Q1'26
Revenue (€m) 2,613 2,386
comparable scope, FX(1) 321 345
Adj. EBITDA (€m) 357 345
Q1'25 Q1'26
Revenue (€m) 1,583 1,427
comparable scope, FX(1) 210 196
Adj. EBITDA (€m) 231 196
Q1'25 Q1'26
Revenue (€m) 1,030 959
comparable scope, FX(1) 127 166
Adj. EBITDA (€m) 147 166
Adj. EBITDA margin (%) 13.7 14.5
Adj. EBITDA margin (%) 14.6 13.7
Adj. EBITDA margin (%) 14.3 17.3
Q1 business performance
Significant FCF improvement; adjusted leverage at 2.1x
Q1'26
Q1'25
16.8%
18.0%
Trade WC (% rev)
Q1'26
Q1'25
13.6%
13.1%
Return on investment (%)
Q1'26
Q1'25
FCF (€m)
(144)
(183)
Middle East impact - raw material inflation vs. pricing
Price increases announced to fully offset ME impact; strong recent track record
Raw Material (RM) basket:50% oil-linked
Oil-linked
Other
Additives
Pigments, colorants, minerals
Resins (incl. monomers)
Packaging Solvents
Other
Proven track record:
inflation fully offset in '21/'22
(€m)
Current cycle:pricing offset underway
400
200
0
-200
-400
Q1 Q2 Q3 Q4 2021
Total pricing
€2.3bn
Price vs RM
Total RM
inflation
€2bn
Q1 Q2 Q3 Q4 Q1 Q2 2022 2023
Current YTG assumptions:oil $110(1), chemical value chain significantly disrupted = YTG RM inflation high-teens %
Difference vs. last cycle: more abrupt, faster pricing response Actions: announced mid single-digit to low-teens price increases to fully offset inflation Pricing implementation: ramping up in Q2, full impact in Q32026 outlook
Q2 adj. EBITDA expected around €400m
Adj. EBITDA: ≥€1.47bn
€1.44bn
≥€1.47bn
scope(1)
(€40m) (€35m)
FX(2)
step-up
€100m
2025
2026
Volumes: Flat
Pricing to fully offset raw material and logistics inflation
Net industrial program benefit: €90m
(SG&A reduction to offset inflation)
Identified items cash out: €170m
CAPEX: €350m
Leverage: ~2x
Stable dividend
Subject to ongoing market uncertainties and at exchange rates as of the end of 2025.
Outlook is on a standalone basis and excludes any effects from the proposed merger with Axalta.
2026 outlook:
RM Add'l
inflation pricing
Middle East impact
AkzoNobel + Axalta
Merger preparations progressing as planned
Closing expected:
End of 2026 - Early 2027
Regulatory
clearances
(ongoing)
EGM
early July
Key workstreams launched (ongoing)
Merger
announced
(November 18)
Three critical workstreams
Integration management office formed
Focus on Day 1 readiness and
accelerating synergies
INTEGRATION PLAN
PCAOB audit completed, confidential F-4 filing submitted end of March
Vote expected early July
EGM
Regulatory filings progressing in-line with expected timelines
REGULATORY CLEARANCE
Upcoming events 2026
Annual General Meeting of shareholders Ex-dividend date of 2025 final dividend Record date of 2025 final dividend
Payment date of 2025 final dividend
April 23
April 27
April 28
May 6
AkzoNobel Media Relations
T +31 (0)88 - 969 7833
Contact: Joost Ruempol [email protected]
AkzoNobel Investor Relations
T +31 (0)88 - 969 1411
Contact: Jan Willem Enhus [email protected]
Alternative performance measures (APM)
AkzoNobel uses APM adjustments to the IFRS measures to provide supplementary information on the reporting of the underlying developments of the business. A reconciliation of the alternative performance measures to the most directly comparable IFRS measures can be found in the appendix to this presentation. This Investor Update covers the highlights for the quarter. We recommend to read the Investor Update in combination with the AkzoNobel Q1 2026 Report. The Q1 2026 Report provides additional information, including the IAS34 condensed consolidated financial statements.
All figures in this presentation and in the AkzoNobel Q1 2026 Report are unaudited. The interim condensed consolidated financial statements were discussed and approved by the Board of Management and the Supervisory Board.
Important information regarding the proposed Axalta transaction
General restrictions
This communication is not for release, publication, or distribution, in whole or in part, in or into, directly or indirectly, any jurisdiction in which such release, publication, or distribution would be unlawful.
This communication is not a prospectus and the information in this communication is not intended to be complete. This communication is for informational purposes only and is not intended to be and shall not constitute a solicitation of any vote or approval, or an offer to buy or sell, or the solicitation of an offer to buy or sell, any securities, or an invitation or recommendation to subscribe for, acquire or buy securities of AkzoNobel or Axalta or any other financial products or securities, in any place or jurisdiction, nor shall there be any offer, solicitation or sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933, as amended (the "Securities Act").
Any decision to purchase, subscribe for, otherwise acquire, sell or otherwise dispose of any securities must be made only on the basis of the information contained in and incorporated by reference into the prospectus with respect to the shares to be allotted by AkzoNobel in the proposed transaction once published. A prospectus in relation to the proposed transaction described in this communication is expected to be published in due course.
The distribution of this communication may, in some countries, be restricted by law or regulation. Accordingly, persons who come into possession of this document should inform themselves of and observe these restrictions. To the fullest extent permitted by applicable law, AkzoNobel and Axalta disclaim any responsibility or liability for the violation of any such restrictions by any person. Neither AkzoNobel, nor Axalta, nor any of their advisors assume any responsibility for any violation by any person of any of these restrictions. Shareholders of AkzoNobel and Axalta, respectively, with any doubt as to their position should consult an appropriate professional advisor without delay.
Additional information and where to find it
In connection with the proposed transaction between AkzoNobel and Axalta, AkzoNobel will file with the U.S. Securities and Exchange Commission (the "SEC") a registration statement on Form F-4, which will include a proxy statement of Axalta that also constitutes a prospectus with respect to the shares to be offered by AkzoNobel in the proposed transaction. The definitive proxy statement/prospectus will be sent to the shareholders of Axalta. Each of AkzoNobel and Axalta will also file other relevant documents in connection with the proposed transaction. This communication is not a substitute for any registration statement, proxy statement/prospectus or other documents AkzoNobel and/or Axalta may file with the SEC or any other competent regulator in connection with the proposed transaction. This communication does not contain all the information that should be considered concerning the proposed transaction and is not intended to form the basis of any investment decision or any other decision in respect of the proposed transaction. BEFORE MAKING ANY VOTING OR INVESTMENT DECISIONS, INVESTORS, STOCKHOLDERS AND SHAREHOLDERS OF AKZONOBEL AND AXALTA ARE URGED TO READ CAREFULLY AND IN THEIR ENTIRETY THE PROXY STATEMENT/PROSPECTUS, AS APPLICABLE, AND ANY OTHER RELEVANT DOCUMENTS THAT ARE FILED OR WILL BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, IN CONNECTION WITH THE PROPOSED TRANSACTION WHEN THEY BECOME AVAILABLE, AS THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT AKZONOBEL, AXALTA, THE PROPOSED TRANSACTION AND RELATED MATTERS. The registration statement and proxy
statement/prospectus and other relevant documents filed by AkzoNobel and Axalta with the SEC, when filed, will be available free of charge at the SEC's website at www.sec.gov. In addition, investors and shareholders will be able to obtain free copies of the proxy statement/prospectus and other documents filed with the SEC from Axalta's investor relations webpage at https://ir.axalta.com/sec-filings/all-sec-filings or from AkzoNobel's investor relations webpage at https://www.akzonobel.com/en/investors.
The contents of this communication should not be construed as financial, legal, business, investment, tax or other professional advice. Each recipient should consult with its own professional advisors for any such matter and advice.
11
Planning assumptions
2026 Mid-term
Adj. EBITDA | At or above €1.47bn (end of Dec '25 FX) | CAGR '23-'27: >6%; Margin: >16% |
Organic volumes | Flat | +LSD% |
Savings | Net industrial program benefit: €90m (SG&A carryover and productivity to offset inflation) | Gross savings €500m (vs 2023) Industrial transformation €300m SG&A actions ~€200m |
Identified items | Cash out ~€170m | Efficiency programs cost: Industrial transformation ~€220m SG&A actions ~€150m |
CAPEX | €350m | €350m pa, incl. €50m pa from industrial transformation ('24-'26) |
Working capital | ≤14.5% revenue | 13-14% revenue |
Effective tax rate | ~28% | ~28% |
Leverage | ~2x | ~2x |
Subject to ongoing market uncertainties and assuming constant currencies, on a standalone basis and excludes any effects from the proposed merger with Axalta.
Mid-term ambitions
Expanding profitability underpinned by growth and operational efficiencies
Adj. EBITDA margin
>16%
Adj. EBITDA growth
CAGR: >6%
ROI
16-19%
Industrial transformation benefit
€300m by 2027
Volume growth
CAGR: +LSD%
Leverage
~2x, investment grade
Subject to ongoing market uncertainties and assuming constant currencies, on a standalone basis and excludes any effects from the proposed merger with Axalta. CAGR on 2023 baseline.
Growth in focus
segments and markets
Sustainability-driven innovation
Industrial excellence
and simplified execution model
Active portfolio management
Strategic priorities Targets
Price/mix and volumes
AkzoNobel
Coatings
Deco
price/mix (% YoY)
8
4
3
2
2
0
0 1
2 2
1 1
-1
5 5
3
2
2
0 1 2 2 1 1 - 2
7
5
3
2
0
1
0
1
2
1 1 1
0
2023
Q1 Q2 Q3 Q4
2024
Q1 Q2 Q3 Q4
2025
Q1 Q2 Q3 Q4
2026
Q1
2023
Q1 Q2 Q3 Q4
2024
Q1 Q2 Q3 Q4
2025
Q1 Q2 Q3 Q4
2026
Q1
2023
Q1 Q2 Q3 Q4
2024
Q1 Q2 Q3 Q4
2025
Q1 Q2 Q3 Q4
2026
Q1
organic volumes (% YoY)
3
0
2
1
1 0
-1
-1 -1 -1
-3
-2
-2
3
2 2 2
0
1
-1
-4
-1 -2 -2 -3 -2
3
0
1
0
0
1
0
-1 -1
-1
-2 -3
-1
2023
Q1 Q2 Q3 Q4
2024
Q1 Q2 Q3 Q4
2025
Q1 Q2 Q3 Q4
2026
Q1
2023
Q1 Q2 Q3 Q4
2024
Q1 Q2 Q3 Q4
2025
Q1 Q2 Q3 Q4
2026
Q1
2023
Q1 Q2 Q3 Q4
2024
Q1 Q2 Q3 Q4
2025
Q1 Q2 Q3 Q4
2026
Q1
14
Performance measures
Definitions of alternative performance measures
Adjusted earnings per share are the basic earnings per share from continuing operations, excluding Identified items and taxes thereon
Adjusted EBITDA is operating income excluding depreciation, amortization and identified items
Adjusted EBITDA margin is adjusted EBITDA as percentage of revenue
Capital expenditures is the total of investments in property, plant and equipment and investments in intangible assets
Constant currencies (CC) calculations exclude the impact of changes in foreign exchange rates by re-translating the prior year local currency amounts
into euros at the current year's foreign exchange rates
Free cash flow is net cash generated from/(used for) operating activities minus capital expenditures
Identified items are special charges and benefits, results on acquisitions and divestments, major restructuring and impairment charges, and charges and benefits related to major legal, environmental and tax cases
Invested capital is total assets (excluding cash and cash equivalents, short-term investments, investments in associates, pension assets, assets held for sale) less current tax liabilities, deferred tax liabilities and trade and other payables. Average invested capital is the average of the quarter end invested capital balances for the last four quarters
Leverage ratio is calculated as net debt divided by adjusted EBITDA for the last 12 months
Trade working capital is defined as the sum of inventories, trade receivables and trade payables. When expressed as a ratio, operating working capital is measured against four times last quarter revenue
Operating expenses (OPEX) includes SG&A costs and fixed manufacturing costs within cost of sales
Organic sales excludes the impact of changes in consolidation, the impact of changes in foreign exchange rates and the impact of hyperinflation
accounting. Refer to constant currencies for details on the calculation of the foreign exchange rate impact
Return on investment (ROI) is adjusted operating income of the last 12 months as percentage of average invested capital
Additional financial information
Net income | 107 | 93 |
Earnings per share (in €) |
Consolidated statement of free cash flows Operating income to net income
€ million | Q1'25 | Q1'26 |
EBITDA 286 270 | ||
€ million | Q1'25 | Q1'26 |
Operating income 192 177 | ||
Impairment losses | 3 | 3 | Financing income and expenses | (30) | (37) | |
Pre-tax results on acquisitions and divestments | 1 | (2) | Results from associates | 7 | 8 | |
Changes in working capital | (336) | (264) | Profit before tax | 169 | 148 | |
Pension top-up payments | - | - | Income tax | (48) | (47) | |
Other changes in provisions | 9 | 1 | Profit from continuing operations | 121 | 101 | |
Interest paid | (41) | (55) | Profit from discontinued operations | - | - | |
Income tax paid | (44) | (41) | Profit for the period | 121 | 101 | |
Other | 10 | 2 | Non-controlling interests | (14) | (8) | |
Net cash generated from/(used for) operating activities | (112) | (86) | ||||
Capital expenditures | (71) | (58) | ||||
Free cash flow | (183) | (144) | Total operations | 0.63 | 0.54 | |
Adjusted earnings per share (in €) | ||||||
Continuing operations | 0.94 | 0.89 | ||||
Alternative performance measures
Operating income (€m) | Q1'25 | Q1'26 | Δ% |
Adjusted earnings per share from continuing operations (€m) | Q1'25 | Q1'26 |
Adjusted EBITDA (€m)
April 2024 - March 2025/April 2025 - March 2026
Performance Coatings 171 140 -18%
Decorative Paints 77 91 18%
Profit from continuing operations 121 101
Identified items reported in operating income 72 77
Operating income 848 1,149
Other activities | (56) | (54) | Identified items reported in interest | (2) | 2 | ||||||
Total | 192 | 177 | -8% | Identified items reported in income tax | (17) | (19) | Identified items | 255 | (78) | ||
Non-controlling interests | (14) | (8) | Adjusted EBITDA | 1,472 | 1,432 | ||||||
Adjusted net income from continuing operations | 160 | 153 | *Excluding identified items | ||||||||
Performance Coatings | (14) | (10) | |||||||||
Decorative Paints | (32) | (40) | Weighted average number of shares (in millions) | 170.8 | 171.2 | ||||||
Other activities | (26) | (27) | |||||||||
Depreciation and amortization* 369 361
Identified items (€m) | Q1'25 | Q1'26 |
Total (72) (77)
Adjusted gross margin (€m) | Q1'25 | Q1'26 |
Gross profit 1,048 978
Identified items (34) (37)
Adjusted gross profit | 1,082 | 1,015 |
Adjusted gross margin | 41.4% | 42.5% |
Adjusted EBITDA (€m) | Q1'25 | Q1'26 | Δ% |
Adjusted operating income | 264 | 254 | -4% |
Depreciation and amortization (excl. Identified items) | 93 | 91 |
Adjusted EBITDA 357 345 -3%
Adjusted EBITDA margin (%) | Q1'25 | Q1'26 |
Performance Coatings 14.6 13.7
operations
Average invested capital (€m) April 2024 - March 2025/April 2025 - March 2026 | Δ% |
Short-term investments | (173) | (270) | ||
Adjusted earnings per share from continuing 0.94 | 0.89 | Cash and cash equivalents | (1,599) | (2,763) |
Performance Coatings 3,733 3,596 -4%
Decorative Paints 3,901 3,391 -13%
Total | 8,393 | 7,864 | -6% |
ROI (%) | |||
Performance Coatings | 19.9 | 17.5 |
Other activities 759 877
April 2024 - March 2025/April 2025 - March 2026
Other activities1
Total 13.1 13.6
Decorative Paints 12.2 15.5
1 ROI for Other activities is not shown, as this is not meaningful.
Net Debt (€m) | Q1'25 | Q1'26 |
Long-term borrowings 4,170 4,757
Short-term borrowings 1,717 1,353
Total
4,115
3,077
Leverage ratios
April 2024 - March 2025/April 2025 - March 2026
Net debt/Adjusted EBITDA 2.8 2.1
Decorative Paints
14.3
17.3
Total 13.7 14.5
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