Business
Akzo Nobel N : Quarterly report - Q4 (report q4 2025 akzonobel)
Akzo Nobel N : Quarterly report - Q4 (report q4 2025
About this update from Akzo Nobel N.v.
AI‹zoNobeI PAINT THE FUTURE Our results at a glance Highlights Q4 2025 (compared with Q4 2024) Organic sales down 1% on lower volumes; revenue down 9% on FX translation Closing of divestment of Akzo Nobel India Ltd (valuation 25x EBITDA, proceeds of €922 million, operating income impact €655 million) Operating income increased to €787 million (2024: €127 million) Adjusted EBITDA at €309 million, up €16 million in constant currencies (2024: €321 million) Adjusted EBITDA margin expansion to 13.0% (2024: 12.3%) driven by efficiency actions Net cash from operating activities positive €462 million (2024: positive €398 million) Proposed merger with Axalta to create a premier global coatings company Highlights full-year 2025 (compared with full-year 2024) Organic sales flat, with increase in price/mix offset by lower volumes; revenue down 5% Operating income increased to €1,164 million, of which identified items of €83 million positive, including the India divestment, the Australian litigation and restructuring costs (2024: €917 million) Adjusted EBITDA at €1,444 million, within 1% of initial guidance Adjusted EBITDA margin expansion to 14.2% (2024: 13.8%); driven by OPEX reduction of €98 million at constant currencies on strong execution of efficiency programs Net cash from operating activities €915 million (2024: €673 million) on working capital improvement Final dividend proposed of €1.54 per share (2024: €1.54 per share) 170.8 171.1 Weighted average number of shares (in millions) 170.7 171.0 Based on current market visibility and at prevailing trading conditions, the company expects to deliver 0.12 3.50 Earnings per share from total operations (in €) 3.17 3.71 €100 million of adjusted EBITDA improvement in constant currencies. As a result, adjusted EBITDA for 0.56 0.56 Adjusted earnings per share from continuing operations (in €)* 3.88 3.63 Outlook* Summary of financial results Fourth quarter January-December 2024 2025 ∆% in € millions/% 2024 2025 ∆% 2,619 2,372 (9%) Revenue 10,711 10,158 (5%) 127 787 Operating income 917 1,164 27% (100) 570 Identified items* (196) 83 227 217 (4%) Adjusted operating income* 1,113 1,081 (3%) 321 309 (4%) Adjusted EBITDA* 1,478 1,444 (2%) 12.3 13.0 Adjusted EBITDA margin (%)* 13.8 14.2 Average invested capital* 8,350 8,016 (4%) ROI (%)* 13.3 13.5 114 100 Capital expenditures* 306 309 Net debt* 3,901 2,942 Leverage ratio* 2.6 2.0 398 462 Net cash from operating activities 673 915 284 362 Free cash flow* 367 606 Number of employees (FTEs) 34,600 31,500 21 598 Net income attributable to shareholders 542 635 the full-year 2026 is expected to be at or above €1.47 billion, based on year-end 2025 exchange rates and adjusted for the India divestment. 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 expects leverage to be around 2 times net debt/adjusted EBITDA by the end of 2026. In the mid-term, AkzoNobel aims to maintain leverage around 2 times, while remaining committed to an investment grade credit rating. Closing of the Axalta merger, which is subject to shareholder and regulatory approvals, is expected in late 2026 or early 2027. * Outlook represents current company expectations based on organic volumes adjusted for the India divestment, is 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. * Alternative performance measure: For more details on these measures, including reconciliation to the most directly comparable IFRS measures and explanation of their use, refer to the Notes to the condensed consolidated financial statements, APM paragraph. Alternative Performance Measures (APMs) AkzoNobel uses APM adjustments to 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 Notes to the condensed consolidated financial statements, paragraph "Alternative Performance Measures." Financial highlights Q4 2025 Revenue in % versus Q4 2024 Volume Price/ mix Organic sales* Acq./ div FX Other Revenue Fourth quarter January-December ∆% ∆% Decorative Paints (1) - (1) (1) (6) (1) (9) Revenue Organic sales down 1%, with an increase in price/mix more than offset by lower volumes. Volumes in Decorative Paints EMEA and Deco Asia were flat, while volumes in Deco LATAM were down. In Performance Coatings, volumes continued to be impacted by macro-economic uncertainties in North America. Price/mix was up 1%, driven by positive pricing in all businesses, except for Deco Asia. The translation effect due to the strong euro impacted revenue by minus 6%, the India divestment impacted revenue by minus 1% and Other (which mainly relates to hyperinflation accounting) also impacted revenue by minus 1%. As a result, revenue was 9% lower overall. 2,619 2,372 (9%) (1%) Total 10,711 10,158 (5%) -% * Alternative performance measure: For more details on these measures, including explanation of their use, refer to the Notes to the condensed consolidated financial statements, APM paragraph. 1% -2% -1% -1% -6% -1% -9% 10 2024 2025 ∆% Orga nic* in € millions 2024 2025 ∆% Orga nic* Performance 1,017 925 (9%) (1%) Decorative 4,301 4,090 (5%) -% Coatings (3) 1 (2) (1) (6) (1) (10) Paints Total (2) 1 (1) (1) (6) (1) (9) 1,602 1,447 (10%) (2%) Performance Coatings 6,410 6,068 (5%) -% in % versus full- year 2024 Volume Paints (1) 1 - - (4) (1) (5) Performance Coatings (2) 2 - - (4) (1) (5) Revenue development Q4 2025 Total (2) 2 - - (4) (1) (5) Decorative Volume development per Price/ mix Organic sales Acq./ div FX Other Revenue Full-year 2025 Revenue Organic sales flat, with an increase in price/mix offset by lower volumes. Price/mix was up 2%, mainly due to positive pricing. 5 0 -5 -10 Volume Price/mix Organic sales Acq./div. FX Other Revenue quarter (year-on-year) in % Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 Decorative Paints (2) (3) - 1 (1) Performance Coatings 1 (1) (2) (2) (3) Total - (2) (1) (1) (2) Volumes were 2% lower due to the impact of macro-economic uncertainties, particularly in North America. Price/mix development per quarter (year-on-year) in % Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 Decorative Paints 2 2 1 1 - Performance Coatings 1 2 2 1 1 Total 1 2 1 1 1 Organic sales development per quarter (year-on-year) in % Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 Decorative Paints - (1) 1 2 (1) Performance Coatings 2 1 - - (2) Total 1 - - 1 (1) Revenue development per quarter (year-on-year) in % Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 Decorative Paints 3 (2) (5) (3) (9) Performance Coatings 4 - (6) (6) (10) Total 4 (1) (6) (5) (9) Revenue development full-year 2025 The translation effect due to the strong euro impacted revenue by minus 4%, while Other (which mainly relates to hyperinflation accounting) was down 1%, resulting in 5% lower revenue overall. 10 5 0 -5 -10 2% -% -% -2% -4% -1% -5% Volume Price/mix Organic sales Acq./div. FX Other Revenue Financial highlights Q4 2025 lower volumes, keeping operating expenses lower year-on-year despite wage and general inflation. Adjusted EBITDA margin Adjusted EBITDA* improved to 14.2% (2024: 13.8%). 2024 2025 ∆% in € millions 2024 2025 ∆% Operating income 113 125 11% Decorative Paints 635 648 2% Fourth quarter January-December Operating income increased to €787 million (2024: €127 million). Operating income included the gain on the India divestment, which contributed €655 million to operating income (included in Other activities). For more details on the impact of the India divestment, reference is made to the Notes to the condensed consolidated financial statements. Adjusted EBITDA Adjusted EBITDA at €309 million (2024: €321 million), including a €28 million negative impact from FX translation. Structural cost measures helped offset most of the impact from lower volumes, keeping operating expenses lower year-on-year despite wage and general inflation. The India divestment decreased adjusted EBITDA when compared to prior year by €6 million. Gross margin increased slightly. Adjusted EBITDA margin improved to 13.0% (2024: 12.3%). Full-year 2025 Operating income Operating income increased to €1,164 million (2024: €917 million) and included identified items of positive €83 million (2024: negative €196 million). The profit from the India divestment, reported in Other activities, more than offset the costs of the provision for the Australian litigation, reported in Performance Coatings, and the costs related to our restructuring programs. Adjusted EBITDA Adjusted EBITDA at €1,444 million (2024: €1,478 million), including a €85 million negative impact from FX translation. Structural cost measures helped offset most of the impact from Financing income and expenses Financing income and expenses amounted to negative €199 million (2024: negative €102 million), with net interest on net debt stable at €127 million (2024: €126 million). The €97 million increase includes an (identified) charge of €21 million related to recording the interest portion of the provision for the Australian litigation. The remainder of the increase is mainly due to hyperinflation accounting and the impact of a prior year interest gain related to the release of a provision for an uncertain tax position. Income tax The effective tax rate was 32.7% (2024: 29.4%). The tax rate was impacted by the derecognition of deferred tax assets, due to a combination of changes in forecasted taxable income in certain jurisdictions and increased deferred tax assets related to temporary differences (Australian litigation), and the India divestment. Excluding these two effects, the tax rate would have been 28.7%. Net income Net income attributable to shareholders was €635 million (2024: €542 million). Earnings per share from total operations was €3.71 (2024: €3.17). Adjusted earnings per share from continuing operations was €3.63 (2024: €3.88). 230 190 (17%) Performance Coatings 913 843 (8%) (22) (6) Other activities (70) (47) 321 309 (4%) Total 1,478 1,444 (2%) * Alternative performance measure: For more details on these measures, including reconciliation to the most directly comparable IFRS measures and explanation of their use, refer to the Notes to the condensed consolidated financial statements, APM paragraph. Operating income Fourth quarter January-December 2024 2025 in € millions 2024 2025 ∆% 41 74 Decorative Paints 405 401 (1%) 150 117 Performance Coatings 679 300 (56%) (64) 596 Other activities (167) 463 127 787 Total 917 1,164 27% Operating income to net income Fourth quarter January-December 2024 2025 in € millions 2024 2025 127 787 Operating income 917 1,164 (36) (43) Financing income and expenses (102) (199) 4 2 Results from associates 23 33 95 746 Profit before tax 838 998 (59) (140) Income tax (246) (326) 36 606 Profit from continuing operations 592 672 - - Profit from discontinued operations - (1) 36 606 Profit for the period 592 671 (15) (8) Non-controlling interests (50) (36) 21 598 Net income 542 635 Revenue Fourth quarter January-December ∆% Orga ∆% Orga Decorative Paints Highlights Q4 2025 Organic sales down 1%, revenue down 9% on FX translation and due to the India divestment Operating income at €401 million (2024: €405 million). The €22 million increase in identified items, which was driven by restructuring programs, was partly offset by lower operating expenses. Adjusted EBITDA increased to €648 million (2024: €635 million), 2024 2025 ∆% nic* in € millions 2024 2025 ∆% nic* despite €40 million negative FX translation impact. Adjusted EBITDA margin expanded to 15.8% (2024: 14.8%). 527 503 (5%) (1%) Decorative Paints EMEA 2,462 2,412 (2%) -% Adjusted EBITDA margin increased to 13.5% (2024: 11.1%) Q4 2025 Organic sales down 1% on lower volumes. Higher volumes in Deco China were more than offset by lower volumes in Deco LATAM and Deco SESA. Volumes in Deco EMEA were flat. Positive pricing was Revenue development Q4 2025 251 225 (10%) 1% Decorative Paints Latin America 239 197 (18%) (3%) Decorative 1,017 925 (9%) (1%) Total 4,301 4,090 (5%) -% Paints Asia 825 758 (8%) 6% 1,014 920 (9%) (3%) driven by Deco EMEA and Deco LATAM; mix was negative. The translation effect due to the strong euro impacted revenue by 10 5 -% 0 *Alternative performance measure: For more details on these measures, including explanation of their use, refer to the Notes to the condensed consolidated financial statements, APM paragraph. minus 6%, the India divestment impacted revenue by minus 1% and Other (which mainly relates to hyperinflation accounting) impacted -5 -10 -1% -1% -1% -6% -1% -9% Key financial figures Fourth quarter January-December revenue by minus 1%. As a result, revenue was 9% lower. Volume Price/mix Organic Acq./div. FX Other Revenue 2024 2025 ∆% in € millions/% 2024 2025 ∆% sales 41 74 80% Operating income 405 401 (1%) Operating income increased to €74 million (2024: €41 million), driven (33) (14) Identified items 1 (80) (102) by lower identified items (down €19 million compared with 2024). Revenue development full-year 2025 (39) (37) Depreciation and amortization ,2 (150) (145) 113 125 11% Adjusted EBITDA 1 635 648 2% Adjusted EBITDA increased to €125 million (2024: €113 million), including a €13 million negative FX translation impact. Lower operating expenses and an increase in gross margin more than offset slightly lower volumes. Adjusted EBITDA margin expansion to 13.5% (2024: 11.1%). Full-year 2025 Organic sales flat, with an increase in price/mix partly offset by lower volumes. Volumes were lower in Deco EMEA and Deco LATAM, while volumes in Deco Asia were up, driven by China outperforming a weak market. Price/mix up 1%, driven by positive pricing in Deco EMEA and Deco LATAM. Currency translation impacted revenue by 4%, while Other (which mainly relates to hyperinflation accounting) was down 1%, resulting in 5% lower revenue. 10 5 0 -5 -10 1% -% -% -1% -1% -4% -5% Volume Price/mix Organic sales Acq./div. FX Other Revenue 11.1 13.5 Adjusted EBITDA margin (%) 1 14.8 15.8 Average invested capital 1 3,921 3,525 (10%) ROI (%) 1 12.4 14.3 1 Alternative performance measure: For more details on these measures, including reconciliation to the most directly comparable IFRS measures and explanation of their use, refer to the Notes to the condensed consolidated financial statements, APM paragraph. 2 Excluding identified items. Europe, Middle East and Africa Q4 organic sales down 1%, revenue down 5%. Volume growth in DIY, mainly driven by growth in UK, South and South Eastern Europe and Africa, offset by lower volumes in Professional. Pricing was positive, mix was negative. Full-year organic sales flat with positive pricing, revenue down 2%. Slightly lower volumes in a soft market, with volume growth in South Europe and Africa and lower volumes in Western Europe. Latin America Q4 organic sales were up 1%, revenue down 10% on currency translation. Pricing was positive, also when excluding inflationary pricing in Argentina. Lower volumes were driven by Brazil, partly offset by volume increases in Argentina. Full-year organic sales were up 6%, revenue down 8% on currency translation. Slightly lower volumes were driven by Brazil. Asia Q4 organic sales down 3%, revenue down 18% on currency translation, which impacted revenue by minus 9%, and due to the India divestment, which impacted revenue by minus 6%. Full-year organic sales were down 3%, revenue down 9% mainly on currency translation. Both in Q4 2025 and for the full-year, volumes in China were higher, outperforming a weak market, but were offset by negative mix. In SESA, strong growth in Vietnam was offset by a weaker market in Indonesia. Rosario adds color to anniversary celebrations The city of Rosario in Argentina recently celebrated its 300th anniversary with a giant 3,200 square meter mural, which was created with help from our International and Alba brands. We teamed up with artist David Petroni to bring to life the largest flag mural in the country, which is located in Parque España, helping to paint a more colorful future for Rosario and its people. Performance Coatings Highlights Q4 2025 Organic sales down 2%; revenue down 10% on FX translation Adjusted EBITDA margin at 13.1% (2024: 14.4%) Q4 2025 Organic sales down 2%, driven by lower volumes, partially offset by higher pricing. Volumes continued to be impacted by macroeconomic uncertainties in North America and, to a lesser extent, mainly due to recording a provision for the Australian litigation (€272 million) and restructuring programs (€88 million). Revenue Fourth quarter ∆% Orga January-December ∆% Orga 2024 2025 ∆% nic 1 in € millions 2024 2025 ∆% nic 1 338 312 (8%) -% Powder Coatings 1,365 1,280 (6%) (1%) 414 373 (10%) (1%) Marine and 1,575 Protective Coatings 1,570 -% 5% 352 324 (8%) 1% Automotive and 1,434 Specialty Coatings 1,347 (6%) (1%) 498 438 (12%) (4%) Industrial Coatings 2,036 1,871 (8%) (3%) 1,602 1,447 (10%) (2%) Total 6,410 6,068 (5%) -% Excluding identified items, lower operating expenses and higher pricing partly offset the impact from lower volumes and lower gross margin. Adjusted EBITDA at €843 million (2024: €913 million), including a €56 million negative FX translation impact. Adjusted EBITDA margin at 13.9% (2024: 14.2%). Europe. Pricing was positive across all businesses. The translation effect due to the strong euro impacted revenue by minus 6%, the India divestment impacted revenue by minus 1% and Other (which mainly relates to hyperinflation accounting) also impacted revenue by minus 1%. As a result, revenue was 10% lower overall. Operating income at €117 million (2024: €150 million). Lower operating expenses and an increase in pricing were more than offset by the impact from lower volumes and lower gross margin. Revenue development Q4 2025 1% -3% -2% -1% 10 5 0 -5 -10 sales* 2024 2025 ∆% in € millions / % 2024 2025 ∆% 150 117 Operating income 679 300 (34) (28) Identified items 1 (56) (365) (46) (45) Depreciation and amortization 2 (178) (178) 230 190 (17%) Adjusted EBITDA 1 913 843 (8%) Volume Price/mix Organic Acq./div. 1 Alternative performance measure: For more details on these measures, including explanation of their use, refer to the Notes to the condensed consolidated financial statements, APM paragraph. -6% -1% -10% FX Other Revenue Key financial figures Fourth quarter January-December Adjusted EBITDA at €190 million (2024: €230 million), including a €19 million negative FX translation impact. Adjusted EBITDA margin at 13.1% (2024: 14.4%). Full-year 2025 Organic sales flat, with positive pricing in all businesses offset by lower volumes. Volume growth in Marine and Protective Coatings was more than offset by the impact from macro-economic uncertainties, particularly in North America. Currency translation impacted revenue by 4%, while Other (which mainly relates to hyperinflation accounting) was down 1%, resulting in revenue being down 5%. Operating income at €300 million (2024: €679 million), impacted by identified items of negative €365 million (2024: negative €56 million), Revenue development full-year 2025 2% -% -% -2% 10 5 0 -5 -10 Volume Price/mix Organic Acq./div. sales 14.4 13.1 Adjusted EBITDA margin (%) 1 14.2 13.9 Average invested capital 1 3,773 3,595 (5%) ROI (%) 1 19.5 18.5 -4% -1% -5% FX Other Revenue 1 Alternative performance measure: For more details on these measures, including reconciliation to the most directly comparable IFRS measures and explanation of their use, refer to the Notes to the condensed consolidated financial statements, APM paragraph. 2 Excluding identified items. Powder Coatings Q4 organic sales flat, revenue down 8% on currency translation. Full-year organic sales down 1%, revenue down 6% on currency translation. Both in Q4 2025 and for the full-year, higher volumes in automotive and functional, driven by growth in Asia, were more than offset by lower volumes in industrial & consumer, specifically in the Americas. Marine and Protective Coatings Q4 organic sales down 1%, revenue down 10% on currency translation. Volumes in marine were lower on strong prior year comparatives, while higher volumes in protective were driven by growth in Asia. Full-year organic sales up 5%, revenue flat. Double-digit growth in protective was driven by North America and Asia, with marine stabilizing despite strong prior year comparatives. Automotive and Specialty Coatings Q4 organic sales up 1%, revenue down 8% on currency translation. Organic sales growth driven by an increase in price/mix. Volumes overall were down, mainly due to lower volumes in automotive, with higher volumes in aerospace and vehicle refinishes, which was driven by growth in Asia. Full-year organic sales down 1%, revenue down 6% on currency translation. Lower volumes reflected weak demand within automotive and vehicle refinishes, particularly in North America. Volumes were higher in aerospace. Positive price/mix. Industrial Coatings Q4 organic sales down 4%, revenue down 12% on currency translation. Full-year organic sales down 3% driven by lower volumes, revenue down 8% on currency translation. Both in Q4 2025 and for the full-year, volumes were down in all segments, with packaging impacted by strong prior year comparatives. AkzoNobel spreading its wings with US aerospace coatings investment We're making a major investment to upgrade our Waukegan, Illinois, facility in the US - the company's biggest aerospace coatings production site. As well as increasing capacity, installing new machinery and introducing more automated processes, the two-phase project will also include creating a new warehouse space just across the state border in Wisconsin. Condensed consolidated financial statements Condensed consolidated statement of income Condensed consolidated statement of comprehensive income Condensed consolidated balance sheet Fourth quarter January-December Fourth quarter January-December December 31, December 31, 2024 2025 in € millions 2024 2025 2024 2025 in € millions 2024 2025 in € millions 2024 2025 Continuing operations 36 606 Profit for the period 592 671 1,026 936 Gross profit 4,337 4,049 (898) (811) SG&A costs (3,414) (3,275) (1) 662 Other results (6) 390 127 787 Operating income 917 1,164 (36) (43) Financing income and expenses (102) (199) 4 2 Results from associates 23 33 translation of foreign operations Assets 2,619 2,372 Revenue 10,711 10,158 Other comprehensive income (1,593) (1,436) Cost of sales (6,374) (6,109) 124 171 Exchange differences arising on 148 (247) Non-current assets Intangible assets 4,049 3,798 - (12) Cash flow hedges - - Property, plant and equipment 2,122 2,039 (89) 62 Post-retirement benefits (135) 13 Right-of-use assets 318 294 22 (22) Tax relating to components of 31 (7) Other non-current assets 1,924 1,760 other comprehensive income 95 746 Profit before tax 838 998 93 805 Comprehensive income for the period 636 430 (59) (140) Income tax (246) (326) 36 606 Profit for the period from continuing 592 672 Comprehensive income for the period attributable to operations 67 794 Shareholders of the company 570 418 57 199 Other comprehensive income for the period (net of tax) Total non-current assets 8,413 7,891 Current assets Inventories 1,721 1,529 Trade and other receivables 2,498 2,403 Current tax assets 150 209 Short-term investments 165 302 44 (241) Discontinued operations 26 11 Non-controlling interests 66 12 - - Profit/(loss) for the period from discontinued - (1) 93 805 Comprehensive income for the period 636 430 Cash and cash equivalents 1,302 1,618 operations Total current assets 5,836 6,061 36 606 Profit for the period 592 671 Total assets 14,249 13,952 Attributable to 21 598 Shareholders of the company 542 635 15 8 Non-controlling interests 50 36 36 606 Profit for the period 592 671 Equity and liabilities Group equity 4,816 4,822 Non-current liabilities Provisions and deferred tax liabilities 1,032 1,253 Long-term borrowings 3,671 3,670 Total non-current liabilities 4,703 4,923 Current liabilities Short-term borrowings 1,697 1,192 Trade and other payables 2,740 2,690 Current tax liabilities 120 139 Current portion of provisions 173 186 Total current liabilities 4,730 4,207 Total equity and liabilities 14,249 13,952 Cash flows Net cash from operating activities in Q4 was an inflow of €462 million (2024: inflow of €398 million). The increase compared with Q4 2024 is mainly due to improvements in changes in working capital. Net cash from investing activities in Q4 was an inflow of €414 million (2024: outflow of €34 million). The inflow was driven by €776 million of cash inflow from the India divestment (net of €98 million of income taxes paid and €28 million of cash derecognized at disposal). The remainder of the inflow was mainly the result of real estate divestments. This inflow was partly offset by a net outflow in short-term investments of €305 million. 398 462 Net cash generated from/(used for) 673 915 (114) (100) Capital expenditures (306) (309) operating activities 284 362 Free cash flow 1 367 606 (114) (100) Capital expenditures (306) (309) Net cash from financing activities in Q4 was an outflow of €603 Consolidated statements of cash flows Fourth quarter January-December 2024 2025 in € millions 2024 2025 1,903 1,324 Net cash and cash equivalents at beginning of period 1,453 1,273 36 606 Profit for the period from continuing operations 592 672 94 98 Amortization and depreciation 371 378 - 1 Impairment losses - 9 36 43 Financing income and expenses 102 199 (4) (2) Results from associates (23) (33) 1 (662) Pre-tax results on acquisitions and divestments 3 (678) 59 140 Income tax 246 326 218 338 Changes in working capital (206) 166 Free cash flow The free cash flow in Q4 2025 improved compared with Q4 2024, mainly due to improvements in changes in working capital. Consolidated statement of free cash flows 2024 2025 in € millions 2024 2025 221 885 EBITDA 1,288 1,542 - 1 Impairment losses - 9 1 (662) Pre-tax results on acquisitions and divestments 3 (678) 218 338 Changes in working capital (206) 166 (1) (1) Pension top-up payments (1) (5) 32 (10) Changes in provisions 8 292 (29) (15) Interest paid (174) (162) (56) (75) Income tax paid (291) (268) 12 1 Other changes 46 19 398 462 Net cash generated from/(used for) operating activities 673 915 Fourth quarter January-December million (2024 outflow €1.0 billion) and was impacted by €523 million (10) (4) Changes in post-retirement benefit provisi ons (17) (12) outflow from borrowings, due to the repayment of a short-term bank 41 (7) Changes in other provisions 24 299 loan. In Q4 2024, the outflow of €1.0 billion mainly related to (29) (15) Interest paid (174) (162) changes from borrowings, including the redemption of a €500 million (56) (75) Income tax paid (291) (268) bond and a net decrease of the short-term loans. 12 1 Other changes 46 19 Net debt (11) 799 Acquisitions and divestments net of cash acquired/divested 2 816 1 Alternative Performance Measures: For more details on these measures, refer to the Notes to the condensed consolidated financial statements, APM paragraph. At December 31, 2025, net debt was €2,942 million (December 31, (101) (305) Investments in short-term investments (320) (314) 2024: €3,901 million). The decrease was mainly due to net cash 160 2 Repayments of short-term investments 423 174 generated from operating activities for the period (€915 million) and 32 18 Other changes 69 75 net proceeds from acquisitions and divestments (€816 million), partly (34) 414 Net cash generated from/(used for) (132) 442 offset by capital expenditures (€309 million) and dividends paid (€382 investing activities million). Leverage ratio (net debt/adjusted EBITDA) at December 31, (901) (523) Changes from borrowings (295) (582) 2025, was 2.0 (December 31, 2024: 2.6). (99) (80) Dividends paid (385) (382) - - Non-controlling interests transactions (4) (17) Net debt 1 (1,000) (603) Net cash generated from/(used for) financing activities (684) (981) December 31, December 31, (636) 273 Net cash generated from/(used for) (143) 376 in € millions 2024 2025 continuing operations Short-term investments (165) (302) (1) - Cash flows from discontinued operations (5) (1) Cash and cash equivalents (1,302) (1,618) (637) 273 Net change in cash and cash equivalents (148) 375 Long-term borrowings 3,671 3,670 total operations Short-term borrowings 1,697 1,192 7 8 Effect of exchange rate changes on cash and (32) (43) cash equivalents Total 3,901 2,942 1,273 1,605 Net cash and cash equivalents at 1,273 1,605 1 Alternative Performance Measures: For more details on these measures, refer to the December 31 Notes to the condensed consolidated financial statements, APM paragraph. Shareholders' equity and non-controlling interests Development of shareholders' equity Shareholders' equity amounted to €4.7 billion at December 31, 2025, compared with €4.6 billion at year-end 2024. The main movements in 2025 related to: Outstanding share capital The outstanding share capital was 171.1 million common shares at the end of December 2025. The weighted average number of shares in Q4 2025 was 171.1 million shares. Consolidated statement of changes in equity Cumulative Other (legal) reserves and Share- Non- Profit for the period of €635 million Offset by: Negative currency effects of €222 million (net of taxes) driven by strengthening of the euro versus other currencies, in particular the US dollar, Chinese yuan, and pound sterling, partly offset by the recycling of the cumulative translation reserve of Akzo Nobel India Ltd in the statement of income Dividend of €339 million Dividend The dividend policy remains unchanged and is to pay a stable to rising dividend. A final 2024 dividend of €1.54 per common share (2023: €1.54) was approved at the AGM on April 25, 2025, which resulted in a total 2024 dividend of €1.98 per share (2023: €1.98). In 2025, an interim dividend of €0.44 per share was paid (2024: €0.44). A final 2025 dividend of €1.54 (2024: €1.54) per common share is proposed. Balance at December 31, 2023 85 - (711) 4,948 4,322 224 4,546 Profit for the period - - - 542 542 50 592 Other comprehensive income/(expense) - - 132 (135) (3) 16 13 Tax on other comprehensive income - - - 31 31 - 31 Comprehensive income for the period - - 132 438 570 66 636 Dividend - - - (338) (338) (47) (385) Equity-settled transactions - - - 23 23 - 23 Acquisitions and divestments - - - (3) (3) (1) (4) Balance at Balance at December 31, 2024 85 - (579) 5,068 4,574 242 4,816 Balance at December 31, 2024 85 - (579) 5,068 4,574 242 4,816 Profit for the period - - - 635 635 36 671 Other comprehensive income/(expense) - 15 (336) 13 (308) (24) (332) Tax on other comprehensive income - - 1 (8) (7) - (7) Reclassification into the statement of income - (15) 113 - 98 - 98 Comprehensive income for the period - - (222) 640 418 12 430 Dividend - - - (339) (339) (43) (382) Equity-settled transactions - - - 24 24 - 24 Issue of common shares 1 - - (1) - - - Acquisitions and divestments - - - (18) (18) (48) (66) Balance at Balance at December 31, 2025 86 - (801) 5,374 4,659 163 4,822 in € millions Subscribed share capital Cash flow hedge reserve translation reserves undistributed profit holders' equity controlling interests Group equity Acquisitions and divestments The acquisition and divestments in other (legal) reserves and undistributed profit mainly contain the impact of internal transfers in advance of the sale of Akzo Nobel India Ltd (ANIL). The India Powder Coatings business and the International Research Center were transferred from ANIL to a wholly owned subsidiary, while certain intellectual property rights were sold to ANIL. These internal transfers decreased the shareholders' equity by €19 million, due to the excess paid over the carrying value of the assets and liabilities acquired. The €48 million decrease in non-controlling interests is mainly related to the divestment of ANIL. For more details, reference is made to the Notes to the condensed consolidated financial statements. Invested capital Invested capital at December 31, 2025, totaled €7.6 billion, down €0.7 billion from year-end 2024. This decrease was mainly caused by negative currency translation, lower trade working capital and the India divestment. Invested capital 1 in € millions December 31, 2024 December 31, 2025 Trade receivables 2,144 1,990 Inventories 1,721 1,529 Trade payables (2,220) (2,157) Trade working capital 1,645 1,362 Other working capital items (137) (50) Non-current assets 8,413 7,891 Less investments in associates (227) (232) Less pension assets (929) (891) Deferred tax liabilities (491) (487) Invested capital 8,274 7,593 1 Alternative Performance Measures: For more details on these measures, refer to the Notes to the condensed consolidated financial statements, APM paragraph. Trade working capital Trade working capital was €1.4 billion at December 31, 2025 (December 31, 2024: €1.6 billion). Trade working capital as a percentage of revenue was 14.4% in Q4 2025. On a comparable basis (excluding the impact of the India divestment) it was 14.7%, down 1.0% compared with Q4 2024, mainly due to lower inventories and trade receivables. Trade working capital 1 As % of revenue 14.4 15.7 16.7 17.0 18.0 Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 1 Alternative Performance Measures: For more details on these measures, refer to the Notes to the condensed consolidated financial statements, APM paragraph. Workforce At December 31, 2025, the number of employees was 31,500 (December 31, 2024: 34,600). On a comparable basis (excluding the impact of the India divestment), headcount was down 1,800 employees driven by efficiency programs. Notes to the condensed consolidated financial statements General information Akzo Nobel N.V. is a public limited liability company headquartered in Amsterdam, the Netherlands. The interim condensed consolidated financial statements include the condensed financial statements of Akzo Nobel N.V. and its consolidated subsidiaries (in this document referred to as "AkzoNobel", "the Group" or "the company"). The company was incorporated under the laws of the Netherlands and is listed on Euronext Amsterdam. Basis of preparation All figures in this report are unaudited. The interim condensed consolidated financial statements were discussed and approved by the Board of Management and the Supervisory Board. These interim condensed financial statements have been authorized for issue. The interim condensed consolidated financial statements should be read in conjunction with AkzoNobel's consolidated financial statements in the 2024 annual report as published on February 26, 2025. The 2024 financial statements were adopted by the Annual General Meeting of shareholders on April 25, 2025. In accordance with Article 393 of Book 2 of the Dutch Civil Code, PricewaterhouseCoopers Accountants N.V. has issued an unqualified auditor's opinion on the 2024 financial statements. The full-year 2025 numbers included in the interim condensed consolidated financial statements are derived from the consolidated financial statements 2025. The consolidated financial statements 2025 have not yet been audited nor published by law, and still have to be adopted by the Annual General Meeting of shareholders. The consolidated financial statements will be published on February 24, 2026. Accounting policies The material accounting policies applied in the interim condensed consolidated financial statements are consistent with those applied in AkzoNobel's consolidated financial statements for the year ended December 31, 2024, except for IFRS Accounting Standards as adopted by the European Union becoming effective on January 1, 2025, which for this year relates to amendments to IAS 21 "Lack of exchangeability". These changes have been assessed for their potential impact. It was concluded that these changes do not have a material effect on AkzoNobel's consolidated financial statements. The interim condensed consolidated financial statements have been prepared in accordance with, and contain the information required by IFRS Accounting Standards as issued by the International Accounting Standards Board as adopted by the European Union (EU-IFRS), IAS 34 "Interim Financial Reporting". Significant estimates The applied estimates in the interim condensed consolidated financial statements are consistent with those applied in AkzoNobel's consolidated financial statements for the year ended December 31, 2024, except for a change in the treatment of Dulux, a brand with an indefinite useful life which is used globally, for impairment testing purposes. As from 2025, following organizational changes, the brand is managed under global leadership and through a global commercial organization. This has led to a revision of how Dulux is tested for impairments annually. Previously, as the brand was managed in a more decentralized manner, the brand value was allocated to the individual business units in accordance with the values measured per the purchase price allocation date. Following the organizational change, the brand is now treated as a corporate asset for impairment testing purposes. Each year, the brand's value is allocated to the carrying values of relevant individual business units (the applicable cash-generating-unit for goodwill impairment testing), based on the business unit's relative share of the global Dulux revenues. We consider this to be a reasonable and consistent basis, as the business units generate the cash flows to recover the central brand value. This change resulted in a modification to the carrying values of the business units Decorative Paints Europe, Middle East and Africa (€125 million increase), Decorative Paints China and North Asia (€239 million decrease), and Decorative Paints South East and South Asia (€113 million increase). Prior to the change, under the existing method, an impairment assessment was performed for these business units. No impairment loss was recognized as a result of this assessment. It is not possible to reliably assess the impact of this change on future periods Revenue disaggregation The table below reflects the disaggregation of revenue. Additional disaggregation of revenue is included on the respective pages on Decorative Paints and Performance Coatings. Revenue disaggregation Pensions The net balance sheet position (according to IAS 19) of the pension plans at the end of Q4 was a surplus of €0.6 billion (year-end 2024: surplus of €0.6 billion). The development during 2025 was mainly the offsetting effect of lower inflation rates and lower plan asset returns in key countries. The carrying amount of the financial assets and current liabilities is a reasonable approximation of their fair value. The fair value of total borrowings as at December 31, 2025, was €4,768 million (December 31, 2024: €5,256 million); the carrying amount measured at amortized cost was €4,863 million (December 31, 2024: €5,368 million). During the year there have been no material changes in the fair value Decorative Performance Hyperinflation accounting (Türkiye and in € millions Paints Coatings Total Argentina) The Netherlands 220 110 330 Other EMEA countries 2,192 2,364 4,556 For Türkiye and Argentina, hyperinflation accounting is applied. The North Asia 426 1,166 1,592 impact of the application of hyperinflation accounting, which includes South East and South Asia 494 712 1,206 the use of end of period rates to translate the statement of the North America - 1,264 1,264 income statement, is shown in the table below. Latin America 758 452 1,210 Total 4,090 6,068 10,158 Hyperinflation accounting January-December 2025 hierarchy. Cash flow reconciliation December 31, in € millions 2024 December 31, 2025 Cash and cash equivalents in the balance sheet 1,302 1,618 Debt to credit institutions (29) (13) Total per statement of cash flows 1,273 1,605 Timing of revenue recognition Goods transferred at a point in time 4,027 5,850 9,877 Services transferred over time 63 218 281 Total 4,090 6,068 10,158 Fourth quarter January-December 2024 2025 in € millions 2024 2025 54 7 Revenue 67 (17) (8) (5) Operating income (47) (22) Hyperinflation: gain/loss on net monetary Related parties AkzoNobel traded goods and services with various related parties in which we hold a 50% or less equity interest (associates), which are not material to the condensed consolidated financial statements. We consider the members of the Executive Committee and the Supervisory Board to be the key management personnel as defined in IAS 24 "Related parties". (3) (6) position 15 (26) Seasonality (4) (1) Other financing income/expenses (3) 1 (15) (12) Profit before tax (35) (47) Revenue and results in Decorative Paints are impacted by seasonal (6) - Income tax (18) (4) influences. Revenue and profitability tend to be higher in the second (21) (12) Profit for the period (53) (51) and third quarter of the year as weather conditions determine if 3 2 Non-controlling interests 10 9 paints and coatings can be applied. (18) (10) Net income (43) (42) In Performance Coatings, revenue and profitability vary, among others, with building patterns from original equipment manufacturers. Other activities In Other activities, we report activities which are not allocated to a particular segment. Hyperinflation impact on adjusted EBITDA for the full-year was €18 million negative (2024: €28 million negative); the impact for Q4 was €4 million negative (2024: €3 million negative). Financial risk management The consolidated financial statements for the year ended December 31, 2024, provide a description of the financial risks faced by the company in its regular operations, as well as the policies and procedures established to mitigate these risks. The risks, policies and procedures outlined in the consolidated financial statements are still applicable and relevant. Contingent liabilities/Project Ichthys update A contingent liability is a liability of uncertain timing or amount. Contingent liabilities are not recognized in the balance sheet because they are dependent on the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity, or because (i) it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or (ii) the amount of the obligation cannot be measured with sufficient reliability. Legal proceedings The company and certain of its (former) group companies are involved in legal proceedings as well as proceedings by / discussions with governments, tax authorities, environmental agencies and other authorities. While it is not feasible to predict or determine the outcome of all pending and threatening legal proceedings and proceedings by/ discussions with governments, tax, environmental agencies and other authorities, the company is of the opinion that the case described below may have a significant impact on the company's consolidated financial position, results of operations and cash flows. In accordance with IAS 37.92, certain information is not disclosed for legal proceedings for which the company concludes that disclosure can be expected to seriously prejudice the outcome of the matter. Project Ichthys AkzoNobel is defending claims brought by INPEX Operations Australia in 2021 and JKC Australia LNG in 2017 relating to the specification and use of an AkzoNobel product which was applied to part of the pipework for the Ichthys Onshore Project in Darwin, Australia, a large LNG project, between 2013 and 2015. The claims allege that AkzoNobel is liable for significant damages (relating to degradation of the coating on extensive parts of the pipework) and associated remediation costs are sought under the Australian Consumer Law. The vast majority of the damages claimed for remediation costs have not yet been incurred, rather they relate to (modelled) future inspection and remediation costs. AkzoNobel denies liability and contests the quantum of alleged damages. In 2024, the case proceeded to trial in the Federal Court of Australia. As part of the proceedings, the Federal Court of Australia appointed a Referee for the consideration of the potential quantum should any liability be established. Following issuance of the Referee's quantum report, INPEX has sought damages in the amount of AUD 4.8 billion (€2.7 billion). There are several other scenarios in the Referee's quantum report for calculating potential damages with significantly lower amounts. Following the completion of the main hearing phase in May 2025, the Federal Court continues to address various procedural and substantive matters as part of the ongoing proceedings. AkzoNobel maintains that it is not liable for any alleged damages and thus argues its liability towards both INPEX and JKC should be zero (0). The Federal Court of Australia has yet to decide on liability, and if AkzoNobel is found liable, on the appropriate amount of damages that AkzoNobel is liable for (including whether any liability should be shared with other parties involved). In Q3 2025, AkzoNobel recognized a provision of €300 million in respect of Project Ichthys, relating to the elements in the claims for which the IAS37 recognition criteria are met. Other elements not meeting the requirements are presented as contingent liabilities and remain unprovided for. AkzoNobel is insured with a maximum coverage of €500 million for cash outflows, whether presented as a provision or as a contingent liability. In accordance with IAS 37.92, no further information is disclosed, as such disclosure might seriously prejudice the outcome of the matter. The timing of the Federal Court of Australia's judgment remains uncertain, although it is not anticipated before 2027. Either party can appeal the first instance decision to the Full Court of the Federal Court of Australia. A further appeal can be made to the High Court of Australia if special leave is granted. Under Australian law, a verdict would be payable soon after being issued, unless a stay would be obtained. The amounts in such verdict could be significantly higher than the amount currently provided for. Alternative Performance Measures In presenting and discussing AkzoNobel's operating results, management uses certain Alternative Performance Measures (APMs) not defined by IFRS Accounting Standards. Management considers these APMs to be relevant supplementary indicators of the company's performance. These or similar measures are widely used in the industry to assess operational performance, developments and positions. Management believes that reporting these measures supports readers' understanding of, among others, the company's sales performance, profitability, financial strength and funding requirements. APMs should not be viewed in isolation as alternatives to the equivalent IFRS measures. Rather, they should be used as supplementary information in conjunction with the most directly comparable IFRS measures. APMs do not have a standardized meaning under IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other companies. Explanations and reconciliations of the APMs to the most directly comparable IFRS measures can be found in this paragraph. Identified items Identified items are special charges and benefits, (post) acquisition and divestment related items, major restructuring and impairment charges, charges and benefits related to major legal, environmental and tax cases, pension curtailments and buy-outs, and hyperinflation accounting adjustments for inventory positions that exceed normal operational levels. Identified items are excluded when calculating adjusted operating income, adjusted EBITDA, adjusted EBITDA margin, return on investments (ROI) and adjusted earnings per share (EPS). Operating income to adjusted EBITDA Full-year 2024 Full-year 2025 Adjusted EBITDA and Adjusted operating income Adjusted EBITDA is operating income excluding depreciation, Decorative Paints Performance Coatings Other activities Total in € millions Decorative Paints Performance Coatings Other activities Total amortization and identified items. Adjusted operating income is operating income excluding identified items. These measures are 405 679 (167) 917 Operating income 401 300 463 1,164 used to evaluate the performance of the company and its segments. (51) (48) (45) (144) Restructuring-related costs including impairments (93) (88) (19) (200) By excluding identified items, the comparability of the operational results increases and financial performance can be evaluated more (12) (2) (9) (23) Acquisitions and divestments (2) - 618 616 effectively. (15) (4) - (19) Hyperinflation (3) (1) - (4) - - - - Legal and environmental - (272) (29) (301) Management views adjusted EBITDA and adjusted operating income - - - - Pension curtailments and buy-outs (1) (3) (6) (10) as appropriate measures for (segment) performance. (2) (2) (6) (10) Other (3) (1) (14) (18) (80) (56) (60) (196) Total identified items (102) (365) 550 83 485 735 (107) 1,113 Adjusted operating income 503 665 (87) 1,081 (150) (178) (37) (365) Depreciation and amortization* (145) (178) (40) (363) 635 913 (70) 1,478 Adjusted EBITDA 648 843 (47) 1,444 * Excluding identified items Adjusted EBITDA margin Adjusted EBITDA margin is an operational profit margin. Adjusted EBITDA margin is adjusted EBITDA as a percentage of revenue. The measure provides a clear picture of (the development of) profitability. Operating income to adjusted EBITDA Fourth quarter 2024 Fourth quarter 2025 Decorative Paints Performance Coatings Other activities Total in € millions Decorative Paints Performance Coatings Other activities Total 41 150 (64) 127 Operating income 74 117 596 787 (25) (31) (25) (81) Restructuring-related costs including impairments (10) (30) (9) (49) Adjusted EBITDA margin Fourth quarter January-December 2024 2025 in % 2024 2025 11.1 13.5 Decorative Paints 14.8 15.8 14.4 13.1 Performance Coatings 14.2 13.9 Other activities* 12.3 13.0 Total 13.8 14.2 (4) (1) (2) (7) Acquisitions and divestments - 1 639 640 (5) - - (5) Hyperinflation (1) - - (1) - - - - Legal and environmental - 3 (7) (4) - - - - Pension curtailments and buy-outs (1) (3) (6) (10) 1 (2) (6) (7) Other (2) 1 (5) (6) (33) (34) (33) (100) Total identified items (14) (28) 612 570 74 184 (31) 227 Adjusted operating income 88 145 (16) 217 (39) (46) (9) (94) Depreciation and amortization* (37) (45) (10) (92) 113 230 (22) 321 Adjusted EBITDA 125 190 (6) 309 * Excluding identified items Free cash flow AkzoNobel reports on free cash flow as management believes it to be a useful measure to provide additional insight into the cash generating capability of its operations. A reconciliation of free cash flow to the most directly comparable IFRS measure is available in the condensed consolidated financial statements. Capital expenditures Capital expenditures is the total of investments in property, plant and equipment and investments in intangible assets. Reporting on capital expenditures gives insight into the total allocation of investments. comparing performance over time, as well as to industry benchmarks and peers. Adjusted earnings per share from continuing operations Fourth quarter Return on investment (ROI) ROI is adjusted operating income of the last 12 months as a percentage of average invested capital. Management uses ROI to assess the efficiency of investments and make informed decisions on capital allocation, in order to maximize returns and drive long-term growth. Capital expenditures 2024 2025 in € millions January-Dec 2024 ember 2025 Fourth quarter January-December 36 100 606 (570) Profit from continuing operations Identified items reported in operating income 592 196 672 (83) Return on investment (ROI) 2024 2025 in € millions 2024 2025 110 98 Investments in property, plant and equipment 282 296 4 2 Investments in intangible assets 24 13 114 100 Capital expenditures 306 309 (3) (2) Identified items reported in interest (21) 20 (23) 70 Identified items reported in income tax (54) 48 (15) (8) Non-controlling interests (50) (36) January 2024 - December 2024/January 2025 - December 2025 in % 2024 2025 Decorative Paints 12.4 14.3 Organic sales exclude the impact of changes in consolidation, the impact of changes in foreign exchange rates and the impact of hyperinflation accounting. The impact of changes in foreign exchange rates is calculated by re-translating the prior year local currency amounts into euros at the current year's foreign exchange rates. Organic sales comparison provides a better understanding of underlying revenue growth factors. Reconciliation to the development of revenue is available in the financial highlights (for consolidated revenues), as well as in the Decorative Paints and Performance Coatings sections. millions) 0.56 0.56 Adjusted earnings per share from continuing operations 3.88 3.63 95 96 Adjusted net income from continuing 663 621 Performance Coatings 19.5 18.5 operations Other activities 1 Organic sales 170.8 171.1 Weighted average number of shares (in 170.7 171.0 Total 13.3 13.5 (Average) invested capital Average invested capital is the average of the quarter-end invested capital balances for the last four quarters. 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 January 2024 - December 2024/January 2025 - December 2025 1 ROI for Other activities is not shown, as this is not meaningful. Adjusted gross margin Adjusted gross profit is revenue less cost of sales, excluding identified items. Adjusted gross margin is adjusted gross profit as a percentage of revenue. This measure provides insight into profit development excluding SG&A costs. By excluding identified items, the comparability of the gross margin development increases and financial performance can be evaluated more effectively. Adjusted gross margin Fourth quarter January-December in € millions 2024 2025 ∆% Trade working capital Decorative Paints 3,921 3,525 (10%) Trade working capital is defined as the sum of inventories, trade Performance Coatings 3,773 3,595 (5%) receivables and trade payables. When expressed as a ratio, trade Other activities 656 896 working capital is measured against four times last quarter revenue. Total 8,350 8,016 (4%) A reconciliation of trade working capital to the most directly 2024 2025 2024 2025 1,026 936 Gross profit 4,337 4,049 (29) (29) Identified items (73) (155) 1,055 965 Adjusted gross profit 4,410 4,204 40.3 40.7 Adjusted gross margin 41.2 41.4 comparable IFRS measure is available in the condensed consolidated financial statements. Management uses trade working capital for cash flow management, to identify opportunities to improve cash generation and to optimize our use of cash. Adjusted earnings per share Adjusted earnings per share is used to provide additional insight into the underlying profitability per share of the company. It helps with Management uses average invested capital to monitor, assess and optimize the total amount of capital invested. Leverage ratio Management monitors capital headroom based on the leverage ratio net debt/adjusted EBITDA. The leverage ratio is calculated based on the net debt per balance sheet position divided by adjusted EBITDA of the last 12 months. Adjusted EBITDA January 2024 - December 2024/January 2025 - December 2025 in € millions 2024 2025 Operating income 917 1,164 Depreciation and amortization* 365 363 Identified items 196 (83) Adjusted EBITDA 1,478 1,444 * Excluding identified items. Leverage ratio January 2024 - December 2024/January 2025 - December 2025 in € millions 2024 2025 Net debt* 3,901 2,942 Adjusted EBITDA 1,478 1,444 Leverage ratio 2.6 2.0 * Breakdown of net debt is available in the net debt paragraph in the condensed consolidated financial statements section. Divestment Akzo Nobel India Ltd. On December 10, 2025, AkzoNobel sold 61% of the shares of Akzo Prior to the sale to JSW, the rights to the Dulux brand in India were sold to ANIL for €115 million. ANIL at the same time sold the Powder Coatings business and International Research Center to AkzoNobel Powder Coatings India Ltd, a fully owned subsidiary of Akzo Nobel N.V., for €207 million. The divested businesses represented our operations in India, excluding our Powder Coatings business and International Research Center. The divested businesses contributed €316 million in revenue in 2025, of which €192 million related to Decorative Paints and €124 million related to Performance Coatings. In terms of operating income, the divested business contributed €44 million, of which €29 million related to Decorative Paints, €21 million related to Performance Coatings and negative €6 million to other activities. In terms of adjusted EBITDA the divested business contributed €54 million, of which €34 million related to Decorative Paints, €24 million related to Performance Coatings and negative €4 million to other activities. Since the divested company does not represent a separate major line of business or geographical area, no discontinued operations accounting was applied. Deal result in € millions 2025 Consideration for shares sold 887 Contingent consideration 20 Recycling of cash flow hedge reserve to P&L 15 Gross Proceeds 922 Nobel India Limited (ANIL) to the JSW Group (JSW); as a result AkzoNobel no longer controlled the company. Prior to that Cost allocated to the deal, including recycling of cumulati differences to P&L ve translation (130) transaction, on September 24, 2025, AkzoNobel sold 5% of the Pre-tax deal result 655 share capital of ANIL through market block trades. After the Income tax related to the sale (100) transaction with JSW, AkzoNobel retained a 9% share in ANIL, Total deal result 555 which was subsequently sold in a block trade on December 17, Derecognition of assets and liabilities (including non-controlling interest) (137) Cash inflow from divestment in € millions 2025 Consideration for shares sold (including shares sold before and after the 887 transaction with JSW) Proceeds from cash flow hedge 15 Cash and cash equivalents derecognized on disposal (28) Income taxes paid on divestment proceeds (98) Total (net) cash inflow from divestment 776 The total (net) cash inflow from divestment is presented within "Acquisitions and divestments net of cash acquired/divested" in the Condensed consolidated statement of cash flows. Balance sheet at divestment date December 10, 2025 in € millions 2025 Intangible assets 55 Property, plant and equipment 49 Other non-current assets 35 Inventories 54 Trade receivables 56 Other current assets 67 Non-current liabilities (20) Trade payables (90) Other current liabilities (21) Non-controlling interest (48) Net assets and liabilities divested 137 2025. As these block trades were linked to the agreement and transaction with JSW, they have been accounted for as part of the deal result. As part of the disposal, AkzoNobel is entitled to additional contingent consideration up to €26 million, dependent on the occurrence of specified future events. The contingent consideration receivable is recognized at its fair value of €20 million, determined using a probability - weighted assessment of the expected future receipts and discounted to present value. The pre-tax deal result is included in "Other results" in the Condensed consolidated statement of income; income tax is accounted for on the tax line. Intended merger with Axalta On November 18, 2025, Akzo Nobel N.V. ("AkzoNobel") and Axalta Coating Systems Ltd. ("Axalta") announced that they had entered into a definitive agreement to combine in an all-stock merger of equals, creating a premier global coatings company. The combination will bring together two coatings industry leaders with complementary portfolios of highly regarded brands to better serve customers across key end markets and enhance value for shareholders, employees and other stakeholders. The terms of the agreement stipulate that Axalta shareholders will receive 0.6539 shares of AkzoNobel stock for each share of Axalta common stock owned. In connection with the transaction, AkzoNobel intends to pay a special cash dividend to AkzoNobel shareholders equal to €2.5 billion, minus the aggregate amount of any regular annual and interim dividends paid by AkzoNobel to AkzoNobel shareholders in 2026 prior to completion. The special dividend is conditional on completion of the transaction and on the level of regular dividends paid in 2026. AkzoNobel shareholders will own approximately 55% and Axalta shareholders will own approximately 45% of the combined company on a pro forma basis immediately after closing. The companies expect the transaction to close in late 2026 to early 2027, subject to approval by shareholders of both AkzoNobel and Axalta, the receipt of requisite regulatory approvals, authorization for the combined company's shares to be listed on NYSE, payment of the special dividend by AkzoNobel, completion of AkzoNobel's works council consultation requirements and the satisfaction of other customary closing conditions. Outlook* Based on current market visibility and at prevailing trading conditions, the company expects to deliver €100 million of adjusted EBITDA improvement in constant currencies. As a result, adjusted EBITDA for the full-year 2026 is expected to be at or above €1.47 billion, based on year-end 2025 exchange rates and adjusted for the India divestment. 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 expects leverage to be around 2 times net debt/ adjusted EBITDA by the end of 2026. In the mid-term, AkzoNobel aims to maintain leverage around 2 times, while remaining committed to an investment grade credit rating. Closing of the Axalta merger, which is subject to shareholder and regulatory approvals, is expected in late 2026 or early 2027. *Outlook represents current company expectations based on organic volumes adjusted for the India divestment, is 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. Amsterdam, February 2, 2026 The Board of Management Greg Poux-Guillaume Maarten de Vries Quarterly statistics 2024 2025 Q1 Q2 Q3 Q4 Full-year in € millions Q1 Q2 Q3 Q4 Full-year Revenue 1,056 1,139 1,089 1,017 4,301 Decorative Paints 1,030 1,080 1,055 925 4,090 1,584 1,645 1,579 1,602 6,410 Performance Coatings 1,583 1,546 1,492 1,447 6,068 2,640 2,784 2,668 2,619 10,711 Total 2,613 2,626 2,547 2,372 10,158 EBITDA* 152 158 166 80 556 Decorative Paints 116 139 186 113 554 220 227 219 196 862 Performance Coatings 217 193 (91) 166 485 (22) (23) (30) (55) (130) Other activities (47) (26) (30) 606 503 350 362 355 221 1,288 Total 286 306 65 885 1,542 Adjusted EBITDA (excluding Identified items)* 156 178 188 113 635 Decorative Paints 147 192 184 125 648 221 237 225 230 913 Performance Coatings 231 213 209 190 843 (14) (15) (19) (22) (70) Other activities (21) (12) (8) (6) (47) 363 400 394 321 1,478 Total 357 393 385 309 1,444 13.8 14.4 14.8 12.3 13.8 Adjusted EBITDA margin (in %) 13.7 15.0 15.1 13.0 14.2 Depreciation and amortization (36) (37) (39) (39) (151) Decorative Paints (39) (38) (37) (39) (153) (44) (45) (48) (46) (183) Performance Coatings (46) (43) (47) (49) (185) (9) (10) (9) (9) (37) Other activities (9) (11) (10) (10) (40) (89) (92) (96) (94) (371) Total (94) (92) (94) (98) (378) Depreciation and amortization (excluding Identified items) (36) (37) (38) (39) (150) Decorative Paints (38) (36) (34) (37) (145) (44) (44) (44) (46) (178) Performance Coatings (46) (43) (44) (45) (178) (9) (10) (9) (9) (37) Other activities (9) (11) (10) (10) (40) (89) (91) (91) (94) (365) Total (93) (90) (88) (92) (363) * Alternative Performance Measures: For more details on these measures, including reconciliations to the most directly comparable IFRS measures and explanation of their use, refer to the Notes to the condensed consolidated financial statements, APM paragraph. Quarterly statistics 2024 2025 Q1 Q2 Q3 Q4 Full-year in € millions Q1 Q2 Q3 Q4 Full-year Operating income 116 121 127 41 405 Decorative Paints 77 101 149 74 401 176 182 171 150 679 Performance Coatings 171 150 (138) 117 300 (31) (33) (39) (64) (167) Other activities (56) (37) (40) 596 463 261 270 259 127 917 Total 192 214 (29) 787 1,164 Identified items included in operating income (4) (20) (23) (33) (80) Decorative Paints (32) (55) (1) (14) (102) (1) (11) (10) (34) (56) Performance Coatings (14) (20) (303) (28) (365) (8) (8) (11) (33) (60) Other activities (26) (14) (22) 612 550 (13) (39) (44) (100) (196) Total (72) (89) (326) 570 83 Adjusted operating income (excluding Identified items)* 120 141 150 74 485 Decorative Paints 109 156 150 88 503 177 193 181 184 735 Performance Coatings 185 170 165 145 665 (23) (25) (28) (31) (107) Other activities (30) (23) (18) (16) (87) 274 309 303 227 1,113 Total 264 303 297 217 1,081 Reconciliation financing income and expenses 15 9 12 25 61 Financing income 14 10 12 13 49 (45) (47) (44) (51) (187) Financing expenses (42) (48) (45) (41) (176) (30) (38) (32) (26) (126) Net interest on net debt (28) (38) (33) (28) (127) Other interest 7 7 7 6 27 Financing income related to post-retirement benefits 8 8 8 8 32 (4) - (1) 2 (3) Interest on provisions - (2) (25) (8) (35) 11 - 7 (18) - Other items (10) (18) (26) (15) (69) 14 7 13 (10) 24 Net other financing charges (2) (12) (43) (15) (72) (16) (31) (19) (36) (102) Financing income and expenses (30) (50) (76) (43) (199) * Alternative Performance Measures: For more details on these measures, including reconciliations to the most directly comparable IFRS measures and explanation of their use, refer to the Notes to the condensed consolidated financial statements, APM paragraph. Quarterly statistics 2024 2025 Q1 Q2 Q3 Q4 Full-year Q1 Q2 Q3 Q4 Full-year Quarterly net income analysis (in € millions) 7 5 7 4 23 Results from associates 7 15 9 2 33 252 244 247 95 838 Profit before tax 169 179 (96) 746 998 (57) (53) (77) (59) (246) Income tax (48) (44) (94) (140) (326) 195 191 170 36 592 Profit for the period from continuing operations 121 135 (190) 606 672 23 22 31 62 29 Effective tax rate (in %) 28 25 (98) 19 33 Earnings per share from continuing operations (in €) 1.07 1.03 0.95 0.12 3.17 Basic 0.63 0.73 (1.13) 3.50 3.72 1.06 1.03 0.95 0.12 3.16 Diluted 0.62 0.72 (1.12) 3.48 3.70 Earnings per share from discontinued operations (in €) (0.01) 0.01 - - - Basic - - (0.01) - (0.01) (0.01) 0.01 - - - Diluted - - (0.01) - (0.01) Earnings per share from total operations (in €) 1.06 1.04 0.95 0.12 3.17 Basic 0.63 0.73 (1.13) 3.50 3.71 1.06 1.03 0.95 0.12 3.16 Diluted 0.62 0.72 (1.13) 3.48 3.69 Number of shares (in millions) 170.6 170.7 170.8 170.8 170.7 Weighted average number of shares 1 170.8 171.0 171.0 171.1 171.0 170.6 170.8 170.8 170.8 170.8 Number of shares at end of quarter 1 170.9 171.0 171.1 171.1 171.1 Adjusted earnings from continuing operations (in € millions)* 195 191 170 36 592 Profit from continuing operations 121 135 (190) 606 672 13 39 44 100 196 Identified items reported in operating income 72 89 326 (570) (83) (1) (14) (3) (3) (21) Identified items reported in interest (2) - 24 (2) 20 (3) (18) (10) (23) (54) Identified items reported in income tax (17) (20) 15 70 48 (13) (15) (7) (15) (50) Non-controlling interests (14) (11) (3) (8) (36) 191 183 194 95 663 Adjusted net income from continuing operations 160 193 172 96 621 1.12 1.07 1.14 0.56 3.88 Adjusted earnings per share from continuing operations (in €) 0.94 1.13 1.01 0.56 3.63 * Alternative performance measure: For more details on this measure, including reconciliations and explanation of its use, refer to the Notes to the consolidated financial statements, APM paragraph. Glossary Adjusted earnings per share from continuing operations 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. Adjusted operating income is operating income excluding Identified items. Capital expenditures is the total of investments in property, plant and equipment and investments in intangible assets. Comprehensive income is the change in equity during a period resulting from transactions and other events other than those changes resulting from transactions with shareholders in their capacity as shareholders. Constant currencies 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. EBITDA is operating income excluding depreciation and amortization. EBITDA margin is EBITDA as a percentage of revenue. EMEA is Europe, Middle East and Africa. Free cash flow is net cash generated from/(used for) operating activities minus capital expenditures. Identified items are special charges and benefits, (post) acquisition and divestment related items, major restructuring and impairment charges, charges and benefits related to major legal, environmental and tax cases, and hyperinflation accounting adjustments for inventory positions that exceed normal operational levels. 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. Invested capital balances on business area level contain intercompany positions, which eliminate on consolidated level. Average invested capital is the average of the quarter-end invested capital balances for the last four quarters. Latin America excludes Mexico. Leverage ratio is calculated as net debt divided by adjusted EBITDA for the last 12 months. Net debt is defined as long-term borrowings plus short-term borrowings, less cash and cash equivalents and short-term investments. North America includes Mexico. North Asia includes, among others, China, Japan and South Korea. Operating income is defined as income excluding net financing expenses, results from associates, income tax and profit/loss from discontinued operations. Operating income includes the share of non-controlling interests. Operating income includes Identified items to the extent these relate to lines included in operating income. Trade working capital is defined as the sum of inventories, trade receivables and trade payables. When expressed as a ratio, trade 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 compares sales between periods, excluding 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. Other working capital is defined as other receivables, plus current tax assets, less other payables and current tax liabilities. ROI is adjusted operating income of the last 12 months as a percentage of average invested capital. SG&A costs include selling and distribution expenses, general and administrative expenses, and research, development and innovation expenses. SESA is South East and South Asia and includes the Pacific. Safe harbor statement This report contains statements which address such key issues as AkzoNobel's growth strategy, future financial results, market positions, product development, products in the pipeline and product approvals. Such statements should be carefully considered, and it should be understood that many factors could cause forecast and actual results to differ from these statements. These factors include, but are not limited to, price fluctuations, currency fluctuations, developments in raw material and personnel costs, pensions, physical and environmental risks, legal issues, and legislative, fiscal, and other regulatory measures, as well as significant market disruptions. Stated competitive positions are based on management estimates supported by information provided by specialized external agencies. For a more comprehensive discussion of the risk factors affecting our business, please see our latest annual report. I mportant 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. Brand and trademarks In this report, reference is made to brands and trademarks owned by, or licensed to, AkzoNobel. Unauthorized use of these is strictly prohibited. Akzo Nobel N.V. Christian Neefestraat 2 P.O. Box 75730 1070 AS Amsterdam, the Netherlands T +31 88 969 7555 https://www.akzonobel.com AkzoNobel Global Communications T +31 88 969 7833 E [email protected] AkzoNobel Investor Relations T +31 88 969 0139 E [email protected] Financial calendar Publication annual report February 24, 2026 For more information: The explanatory sheets used during the press conference can be viewed on AkzoNobel's corporate website: https://www.akzonobel.com Since 1792, we've been supplying the innovative paints and coatings that help to color people's lives and protect what matters most. Our world class portfolio of brands - including Dulux, International, Sikkens and Interpon - is trusted by customers around the globe. We're active in more than 150 countries and use our expertise to sustain and enhance everyday life. Because we believe every surface is an opportunity. It's what you'd expect from a pioneering and long-established paints company that's dedicated to providing more sustainable solutions and preserving the best of what we have today - while creating an even better tomorrow. Let's paint the future together. For more information, please visit https://www.akzonobel.com . © 2026 Akzo Nobel N.V. All rights reserved.