Our results at a glance
Summary of financial results | |||
First quarter in € millions/% | 2025 | 2026 | ∆% |
Revenue | 2,613 | 2,386 | (9%) |
Operating income | 192 | 177 | (8%) |
Identified items* | (72) | (77) | |
Adjusted operating income* | 264 | 254 | (4%) |
Adjusted EBITDA* | 357 | 345 | (3%) |
Adjusted EBITDA margin (%)* | 13.7 | 14.5 | |
Average invested capital* | 8,393 | 7,864 | (6%) |
ROI (%)* | 13.1 | 13.6 | |
Capital expenditures* | 71 | 58 | |
Net debt* | 4,115 | 3,077 | |
Leverage ratio* | 2.8 | 2.1 | |
Net cash from operating activities | (112) | (86) | |
Free cash flow* | (183) | (144) | |
Number of employees (FTEs) | 34,100 | 31,100 | |
Net income attributable to shareholders | 107 | 93 | |
Weighted average number of shares (in millions) | 170.8 | 171.2 | |
Earnings per share from total operations (in €) | 0.63 | 0.54 | |
Adjusted earnings per share from continuing operations (in €)* | 0.94 | 0.89 | |
Organic sales -1%, revenue -9%, year-on-year on FX translation (-5%) and India divestment (-3%)
Operating income at €177 mln, up €15 mln YoY excluding €19 mln FX and €11 mln India divestment (2025: €192 mln)
Adjusted EBITDA at €345 mln, up €24 mln YoY excluding €23 mln FX and €13 mln India divestment (2025: €357 mln)
Adjusted EBITDA margin expansion to 14.5% (2025: 13.7%) driven by gross margin expansion
Net cash from operating activities -€86 million, up €26 million YoY (2025: -€112 million)
Agreement signed to sell AkzoNobel Pakistan to Packages Group, expected to close in H2
Based on current market visibility, including current geopolitical developments, 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.
* Alternative Performance measures: 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.
1 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 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."
Adjusted EBITDA bridge Q1 2026in € millions
400
357
300
-23
-13
24 345
2025 FX India divestment
Step-up 2026
Financial highlights
Q1 2026 | Revenue | in % versus Q1 2025 | Volume | Price/ mix | Organic sales | Acq./ div | FX | Other | Revenue | |
First quarter in € millions 2025 2026 ∆% ∆% | Performance Coatings | (2) | (1) | (3) | (2) | (5) | - | (10) |
Revenue
Organic sales down 1%, driven by lower volumes. In both Decorative Paints and Performance Coatings, volumes were strong in Asia, while volumes in Europe and North America were lower due to continued market uncertainty.
Price/mix was flat. Pricing was positive, driven by Deco EMEA and Automotive and Specialty Coatings; mix was negative.
The translation effect due to the strong euro impacted revenue by minus 5% and the India divestment impacted revenue by minus 3%. As a result, revenue was 9% lower overall.
O | rganic* | ||||||||||||
Performance Coatings | 1,583 | 1,427 | (10%) | (3%) | Decorative Paints | - | 2 | 2 | (5) | (4) | - | (7) | |
Decorative Paints | 1,030 | 959 | (7%) | 2% | Total | (1) | - | (1) | (3) | (5) | - | (9) | |
Total | 2,613 | 2,386 | (9%) | (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.
Volume development per quarter (year-on-year) in % | Q1 25 | Q2 25 | Q3 25 | Q4 25 | Q1 26 |
Performance Coatings | (1) | (2) | (2) | (3) | (2) |
Decorative Paints | (3) | - | 1 | (1) | - |
Total | (2) | (1) | (1) | (2) | (1) |
Price/mix development per quarter (year-on-year) in % | Q1 25 | Q2 25 | Q3 25 | Q4 25 | Q1 26 |
Performance Coatings | 2 | 2 | 1 | 1 | (1) |
Decorative Paints | 2 | 1 | 1 | - | 2 |
Total | 2 | 1 | 1 | 1 | - |
-%
-1%
-1%
-3%
-%
10
5
0
-5
-10
-5% -9%
Volume Price/mix Organic
sales
Acq./div. FX Other Revenue
Organic sales development per
Q4 25 | Q1 26 |
(2) | (3) |
(1) | 2 |
(1) | (1) |
quarter (year-on-year) in % Q1 25 Q2 25 Q3 25
Performance Coatings 1 - -
Total
-
-
1
Decorative Paints (1) 1 2
Revenue development per
quarter (year-on-year) in % Q1 25 Q2 25 Q3 25 Q4 25 Q1 26
Performance Coatings - (6) (6) (10) (10)
Decorative Paints (2) (5) (3) (9) (7)
Total (1) (6) (5) (9) (9)
Major upgrade completed at Pilawa site
We recently completed construction of a new 4,000m2 warehouse at our Pilawa site in Poland. The new facility houses raw materials and packaging used in water-based paint production. It was built in response to growing production needs and increasing volumes resulting from transfers implemented under the company's industrial excellence program. The investment has also contributed to increased employment at the site, further strengthening its role as a regional employer.
Financial highlights
Q1 2026 Adjusted EBITDA*Operating income
Operating income at €177 million (2025: €192 million). Excluding the impact from the India divestment of €11 million and €19 million negative impact from currency translation, operating income was up €15 million.
Adjusted EBITDA
Adjusted EBITDA at €345 million (2025: €357 million); the Adjusted EBITDA margin increased by 80 basis points to 14.5%
Net income
Net income attributable to shareholders was €93 million (2025:
€107 million). Earnings per share from total operations was
€0.54 (2025: €0.63). Adjusted earnings per share from
First quarter | ||||
Income tax | in € millions | 2025 | 2026 | ∆% |
The effective tax rate was 31.8% (2025: 28.4%). Compared with | Performance Coatings | 231 | 196 | (15%) |
prior year, the effective tax rate increased as a result of a change | Decorative Paints | 147 | 166 | 13% |
in country mix and higher non-deductible interest in the | Other activities | (21) | (17) | |
Netherlands. | Total | 357 | 345 | (3%) |
* 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 incomeFirst quarter
(2025: 13.7%), driven by gross margin expansion. continuing operations was €0.89 (2025: €0.94). | in € millions | 2025 | 2026 | ∆% |
Performance Coatings | 171 | 140 | (18%) | |
Excluding the €36 million negative impact from the India | Decorative Paints | 77 | 91 | 18% |
divestment and currency translation, adjusted EBITDA was up | Other activities | (56) | (54) | |
€24 million. | Total | 192 | 177 | (8%) |
Adjusted EBITDA and Operating income bridge | ||||
Operating income to net income in € millions Adjusted EBITDA Operating income | ||||
2025 as reported | 357 | 192 |
Impact India divestment | (13) | (11) |
Impact currency translation | (23) | (19) |
Step-up | 24 | 15 |
2026 as reported | 345 | 177 |
First quarter in € millions | 2025 | 2026 |
Operating income | 192 | 177 |
Financing income and expenses | (30) | (37) |
Results from associates | 7 | 8 |
Profit before tax | 169 | 148 |
Income tax | (48) | (47) |
Profit from continuing operations | 121 | 101 |
Profit from discontinued operations | - | - |
Profit for the period | 121 | 101 |
Non-controlling interests | (14) | (8) |
Net income | 107 | 93 |
Financing income and expenses
Financing income and expenses amounted to negative €37 million (2025: negative €30 million); the increase is mainly due to hyperinflation accounting. Net interest on net debt at €25 million (2025: €28 million).
Financial highlights
Cash flows
Net cash from operating activities in Q1 was an outflow of €86 million (2025: outflow of €112 million). The lower outflow compared with Q1 2025 is mainly due to improvements in changes in working capital.
Net cash from investing activities in Q1 was an outflow of €8 million (2025: outflow of €63 million). The lower outflow compared with Q1 2025 was mainly due to a net inflow in short-term investments of
€34 million (2025: €7 million outflow).
Net cash from financing activities was an inflow of €1.2 billion in Q1 and included €1.1 billion in bond proceeds.
Free cash flow
The free cash flow in Q1 2026 improved compared with Q1 2025, mainly due to improvements in changes in working capital.
Net debt
At March 31, 2026, net debt was €3,077 million (December 31, 2025: €2,942 million). The increase compared with December 31, 2025, was mainly due to net cash used for operating activities (€86 million negative; including seasonal build-up of working capital of
€264 million) and capital expenditures (€58 million). Leverage ratio (net debt/adjusted EBITDA) at March 31, 2026, was 2.1 (December 31, 2025: 2.0).
Net debt* | March 31, | December 31, | March 31, |
in € millions | 2025 | 2025 | 2026 |
Short-term investments | (173) | (302) | (270) |
Trade working capital
Trade working capital at March 31, 2026, was €1.6 billion (March 31, 2025: €1.9 billion).
Trade working capital as a percentage of revenue was 16.8% in Q1 2026. Compared with Q1 2025, the decrease is mainly the result of lower inventories and trade receivables.
Trade working capital*As % of revenue
Free cash flow*First quarter
in € millions 2025 2026
EBITDA | 286 | 270 |
Impairment losses Pre-tax results on acquisitions and divestments | 3 1 | 3 (2) |
Changes in working capital | (336) | (264) |
Invested capital
Invested capital at March 31, 2026, totaled €7.9 billion, compared with €7.6 billion at year-end 2025. This increase was mainly caused by (seasonal) higher trade working capital.
Cash and cash equivalents | (1,599) | (1,618) | (2,763) | 18.0 | 17.0 | 16.7 | 16.8 | ||||||
Long-term borrowings | 4,170 | 3,670 | 4,757 | 14.4 | |||||||||
Short-term borrowings | 1,717 | 1,192 | 1,353 | ||||||||||
Total | 4,115 | 2,942 | 3,077 | ||||||||||
* Alternative Performance Measure: For more details on these measures, refer to the Notes to the condensed consolidated financial statements, APM paragraph. | |||||||||||||
* Alternative Performance Measure: For more details on these measures, refer to the Notes to the condensed consolidated financial statements, APM paragraph.
Workforce
At March 31, 2026, the number of employees was 31,100 (March 31, 2025: 34,100). The decrease includes a reduction of 1,300 employees due to the India divestment.
Changes in provisions | 9 | 1 | Invested capital* | |||
Interest paid | (41) | (55) | March 31, December 31, | March 31, | ||
Income tax paid | (44) | (41) | in € millions | 2025 2025 | 2026 | |
Other changes | 10 | 2 | Trade receivables | 2,414 1,990 | 2,234 | |
Net cash generated from/(used for) operating activities | (112) | (86) | Inventories | 1,777 1,529 | 1,609 | |
Capital expenditures | (71) | (58) | Trade payables | (2,310) (2,157) | (2,244) | |
Free cash flow* | (183) | (144) | Trade working capital | 1,881 1,362 | 1,599 | |
*Alternative Performance Measure: For more details on these measures, refer to the Notes to | ||||||
the condensed consolidated financial statements, APM paragraph. | Non-current assets | 8,324 7,891 | 7,959 | |||
Less investments in associates | (234) (232) | (241) | ||||
Less pension assets | (931) (891) | (916) | ||||
Deferred tax liabilities | (501) (487) | (498) | ||||
Invested capital* | 8,511 7,593 | 7,907 | ||||
Other working capital items (28) (50) 4
*Alternative Performance Measure: For more details on these measures, refer to the Notes to the condensed consolidated financial statements, APM paragraph.
Performance Coatings
Highlights Q1 2026Revenue down 15% due to currency translation and the India
divestment.
RevenueFirst quarter
| in € millions | 2025 | 2026 | ∆% | ∆% Organic* | |
Automotive and Specialty Coatings | Powder Coatings | 328 | 315 | (4%) | 1% | |
Q1 organic sales up 1%, driven by an increase in price/mix, with flat | Marine and Protective Coatings | 403 | 342 | (15%) | (5%) | |
Q1 2026 | volumes. Strong growth in aerospace, while vehicle refinish grew in | Automotive and Specialty Coatings | 354 | 328 | (7%) | 1% |
Asia and is sequentially stabilizing in North America; automotive | Industrial Coatings | 498 | 442 | (11%) | (6%) | |
Organic sales down 3%, mainly driven by lower volumes. Strong | volumes declined due to weakness in China. | Total | 1,583 | 1,427 | (10%) | (3%) |
volume growth in Asia, more than offset by lower volumes in North
America and Europe amid macro-economic uncertainties.
Price/mix was impacted by unfavorable mix. Pricing was mostly flat, with Automotive and Specialty Coatings delivering positive pricing.
The translation effect due to the strong euro impacted revenue by minus 5% and the divestment of our liquid coatings business in India impacted revenue by minus 2%. As a result, revenue was 10% lower overall.
Revenue down 7%, due to currency translation and the India divestment.
* 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.
Operating income at €140 million (2025: €171 million), driven by lower volumes.
Adjusted EBITDA at €196 million (2025: €231 million), including €17 million negative currency translation impact and €4 million impact from the India divestment. Adjusted EBITDA margin at 13.7% (2025: 14.6%).
10
Industrial Coatings Q1 organic sales down 6%, revenue down 11% on currency | Key financial figures First quarter | ||||
translation. Volumes in coil and wood adhesives were up, while | in € millions/% | 2025 | 2026 | ∆% | |
volumes in packaging were down. | Operating income | 171 | 140 | (18%) | |
Identified items* | (14) | (10) | |||
Revenue development Q1 2026 | Depreciation and amortization1 | (46) | (46) | ||
Adjusted EBITDA* | 231 | 196 | (15%) | ||
Adjusted EBITDA margin (%)* | 14.6 | 13.7 | |||
5 | |||||
0
-5
-10
-2%
-1% -3%
-2%
-%
-5%
-10%
Average invested capital* | 3,733 | 3,596 | (4%) |
ROI (%)* | 19.9 | 17.5 |
*Alternative Performance Measure: For more details on these measures, including reconciliation to the most directly comparable IFRS measures and explanation of their use,
Powder Coatings
Q1 organic sales up 1% due to higher volumes, revenue down 4% due to currency translation. Higher volumes in architectural and automotive, partly offset by lower volumes in industrial & consumer.
Marine and Protective Coatings
Q1 organic sales down 5% on lower volumes, with volumes in protective slightly up, while volumes in marine were down from project phasing and strong prior-year comparatives. Protective's volume growth was driven by Asia, partly offset by lower volumes in Europe and North America.
Volume Price/mix Organic
sales*
Acq./div. FX Other Revenue
refer to the Notes to the condensed consolidated financial statements, APM paragraph.
1 Excluding identified items.
Decorative Paints
Asia | Revenue | ||||
Q1 organic sales up 4%, revenue down 24% reflecting a 20% impact from the India divestment as well as currency translation. | First quarter | ∆% | |||
Organic sales growth driven by strong volume growth in China and | in € millions | 2025 | 2026 | ∆% | Organic* |
Vietnam. | Decorative Paints EMEA | 607 | 598 | (1%) | -% |
Decorative Paints Latin America | 171 | 170 | (1%) | 4% | |
Revenue development Q1 2026 | Decorative Paints Asia | 252 | 191 | (24%) | 4% |
Total | 1,030 | 959 | (7%) | 2% | |
Organic sales up 2% on positive pricing; revenue down 7%
Adjusted EBITDA margin increased to 17.3% (2025: 14.3%)
Organic sales up 2% on positive pricing in Deco EMEA and Deco LATAM. Strong volume growth in Deco Asia, as well as growth in Deco LATAM, while volumes in Deco EMEA were lower. Mix was slightly down.
The translation effect due to the strong euro impacted revenue by minus 4% and the India divestment impacted revenue by minus 5%. As a result, revenue was 7% lower.
Operating income increased to €91 million (2025: €77 million), driven by gross margin expansion on the back of higher pricing.
Adjusted EBITDA margin increased to 17.3% (2025: 14.3%). Adjusted EBITDA increased to €166 million (2025: €147 million), despite €10 million negative impact from currency translation and
€10 million impact from the India divestment.
Europe, Middle East and Africa
Q1 organic sales flat, as pricing gains offset lower volumes, primarily in Western Europe, where volumes did improve progressively over the course of the quarter. DIY volumes were lower, while the Professional channel held up well. Revenue was down 1%.
10
5
0
-5
-10
-%
2%
2%
-5%
-4% -%
-7%
Volume Price/mix Organic
sales
Acq./div. FX Other Revenue
*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.
Key financial figures
First quarter
in € millions/% 2025 2026 ∆%
Operating income 77 91 18%
Identified items* (32) (40)
Depreciation and amortization1 (38) (35)
Adjusted EBITDA* 147 166 13%
Adjusted EBITDA margin (%)* 14.3 17.3
Average invested capital* 3,901 3,391 (13%)
ROI (%)* 12.2 15.5
* 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.
1 Excluding identified items.
Latin America
Q1 organic sales were up 4%, revenue down 1% on currency translation. Pricing was positive, also when excluding inflationary pricing in Argentina.
Higher volumes across the region, driven by Brazil.
Coral brand partners with iconic attraction in Brazil
Our Coral brand has been named official paint partner of the iconic Sugarloaf Mountain Cable Car in Brazil. As well as restoring the artworks on the cable car stations, Coral has also launched an exclusive palette of five colors, based on the beautiful landscapes at Bondinho Park, which surrounds the famous attraction.
Condensed consolidated financial statements
Condensed consolidated statement of incomeFirst quarter
Condensed consolidated statement of comprehensive incomeFirst quarter
Condensed consolidated balance sheetin € millions | 2025 | 2026 | in € millions | 2025 | 2026 | |
Continuing operations | Profit for the period | 121 | 101 | |||
Revenue | 2,613 | 2,386 | Other comprehensive income | |||
Cost of sales | (1,565) | (1,408) | Exchange differences arising on translation of foreign operations | (84) | 120 | |
Gross profit | 1,048 | 978 | Post-retirement benefits | 12 | 8 | |
SG&A costs | (855) | (804) | Tax relating to components of | (3) | - |
Other results | (1) | 3 |
Operating income | 192 | 177 |
Financing income and expenses | (30) | (37) |
Results from associates | 7 | 8 |
Profit before tax | 169 | 148 |
Income tax | (48) | (47) |
Profit for the period from continuing operations | 121 | 101 |
Discontinued operations |
Profit/(loss) for the period from discontinued operations - -
other comprehensive income
Comprehensive income for the period 46 229
in € millions | December 31, 2025 | March 31, 2026 |
Assets Non-current assets | ||
Intangible assets | 3,798 | 3,835 |
Property, plant and equipment | 2,039 | 2,048 |
Right-of-use assets | 294 | 288 |
Other non-current assets | 1,760 | 1,788 |
Total non-current assets | 7,891 | 7,959 |
Current assets | ||
Inventories | 1,529 | 1,609 |
Other comprehensive income for the period (net of tax) (75) 128
Trade and other receivables | 2,403 | 2,655 |
Current tax assets | 209 | 179 |
Short-term investments | 302 | 270 |
Cash and cash equivalents | 1,618 | 2,763 |
Assets held for sale | - | 51 |
Total current assets | 6,061 | 7,527 |
Comprehensive income for the period attributable to
Shareholders of the company | 43 | 216 |
Non-controlling interests | 3 | 13 |
Comprehensive income for the period | 46 | 229 |
Profit for the period Attributable to | 121 | 101 | Total assets | 13,952 | 15,486 | |
Shareholders of the company | 107 | 93 | Equity and liabilities | |||
Non-controlling interests | 14 | 8 | Group equity | 4,822 | 5,054 | |
Profit for the period | 121 | 101 | Non-current liabilities | |||
Provisions and deferred tax liabilities | 1,253 | 1,288 | ||||
Earnings per share from total operations (in €) | Long-term borrowings | 3,670 | 4,757 | |||
Basic | 0.63 | 0.54 | Total non-current liabilities | 4,923 | 6,045 | |
Diluted | 0.62 | 0.54 | Current liabilities | |||
Short-term borrowings | 1,192 | 1,353 | ||||
Trade and other payables | 2,690 | 2,730 | ||||
Current tax liabilities | 139 | 110 | ||||
Current portion of provisions | 186 | 178 | ||||
Liabilities held for sale | - | 16 | ||||
Total current liabilities | 4,207 | 4,387 | ||||
Total equity and liabilities | 13,952 | 15,486 | ||||
Condensed consolidated statement of cash flows | ||
First quarter in € millions | 2025 | 2026 |
Profit for the period from continuing operations | 121 | 101 |
Amortization and depreciation | 94 | 93 |
Impairment losses | 3 | 3 |
Financing income and expenses | 30 | 37 |
Results from associates | (7) | (8) |
Pre-tax results on acquisitions and divestments | 1 | (2) |
Income tax | 48 | 47 |
Changes in working capital | (336) | (264) |
Changes in provisions | 9 | 1 |
Interest paid | (41) | (55) |
Income tax paid | (44) | (41) |
Other changes | 10 | 2 |
Net cash generated from/(used for) operating activities | (112) | (86) |
Capital expenditures | (71) | (58) |
Interest received | 15 | 15 |
Acquisitions and divestments net of cash acquired/divested | - | 1 |
Investments in short-term investments | (8) | (21) |
Repayments of short-term investments | 1 | 55 |
Net cash generated from/(used for) investing activities | (63) | (8) |
Changes from borrowings | 477 | 1,220 |
Dividends paid | (6) | (3) |
Net cash generated from/(used for) financing activities | 471 | 1,217 |
Net cash generated from/(used for) continuing operations | 296 | 1,123 |
Cash flows from discontinued operations | (1) | - |
Net change in cash and cash equivalents total operations | 295 | 1,123 |
Net cash and cash equivalents at beginning of period | 1,273 | 1,605 |
Effect of exchange rate changes on cash and cash equivalents | (7) | 18 |
Net cash and cash equivalents at March 31 | 1,561 | 2,746 |
in € millions | Subscribed share capital | Cumulative translation reserves | Other (legal) reserves and undistributed profit | Share-holders' equity | Non-controlling interests | Group equity |
Balance at December 31, 2024 | 85 | (579) | 5,068 | 4,574 | 242 | 4,816 |
Profit for the period | - | - | 107 | 107 | 14 | 121 |
Other comprehensive income/(expense) | - | (73) | 12 | (61) | (11) | (72) |
Tax on other comprehensive income | - | - | (3) | (3) | - | (3) |
Comprehensive income for the period | - | (73) | 116 | 43 | 3 | 46 |
Dividend | - | - | - | - | (7) | (7) |
Equity-settled transactions | - | - | 7 | 7 | - | 7 |
Balance at March 31, 2025 | 85 | (652) | 5,191 | 4,624 | 238 | 4,862 |
Balance at December 31, 2025 | 86 | (801) | 5,374 | 4,659 | 163 | 4,822 |
Profit for the period | - | - | 93 | 93 | 8 | 101 |
Other comprehensive income/(expense) | - | 115 | 8 | 123 | 5 | 128 |
Tax on other comprehensive income | - | (1) | 1 | - | - | - |
Comprehensive income for the period | - | 114 | 102 | 216 | 13 | 229 |
Dividend | - | - | - | - | (3) | (3) |
Equity-settled transactions | - | - | 6 | 6 | - | 6 |
Balance at March 31, 2026 | 86 | (687) | 5,482 | 4,881 | 173 | 5,054 |
Notes to the condensed consolidated financial statements
General informationAkzo 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 preparationThese condensed consolidated financial statements for the three-month period ended March 31, 2026, have been prepared in accordance with IAS 34"Interim Financial Reporting" as issued by the International Accounting Standards Board (IASB) as adopted by the European Union.
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 2025 annual report as published on February 24, 2026. The 2025 financial statements are to be adopted by the Annual General Meeting of shareholders on April 23, 2026. 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 2025 financial statements.
Accounting policiesThe 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, 2025, except for amendments to IFRS 9 and IFRS 7 related to "Contracts Referencing Nature-dependent Electricity" and
to "Classification and Measurement of Financial Instruments". These amendments were assessed and are not expected to materially affect AkzoNobel's consolidated financial statements.
Geopolitical developments (Middle East)The economic environment remains challenging, characterized by ongoing geopolitical tensions, increasing trade frictions and adverse currency impacts. The conflict in the Middle East, which escalated in Q1 2026, brings further volatility.
At present, AkzoNobel generates only a low single-digit percentage of its total revenues from this region. However, the implications of this conflict on global raw material prices, logistics costs and raw material availability can have a material adverse effect on AkzoNobel's business, financial condition, results of operations and/ or cash flows.
In Q1 2026 the impact of the conflict was limited. Our already announced price increases are expected to offset the anticipated impact of raw material cost inflation, based on current assumptions. We will monitor developments and take further measures as needed.
SeasonalityRevenue and results in Decorative Paints are impacted by seasonal influences. Revenue and profitability tend to be higher in the second and third quarter of the year as weather conditions determine if paints and coatings can be applied.
In Performance Coatings, revenue and profitability vary, among others, with building patterns from original equipment manufacturers.
Scope of consolidationPakistan held for sale
On April 16, 2026, Akzo Nobel N.V. signed an agreement to sell Akzo Nobel Pakistan Limited to IGI investments, part of the
Packages Group. The transaction is based on a total enterprise value of approximately €50 million. Completion of the transaction is subject to customary closing conditions, including regulatory approvals.
Completion is expected in H2 2026.
The assets and liabilities of Akzo Nobel Pakistan Limited were classified as held for sale as of March 31, 2026. No impairment was recognized upon classification as held for sale. On March 31, 2026, the cumulative translation adjustment related to this entity recognized in equity amounted to €51 million negative; this amount will be recycled to the P&L at completion.
The business reported as held for sale represents less than 0.5% of our revenue; discontinued operations is not applicable.
Assets and liabilities held for saleMarch 31, 2026
in € millions 2026
Intangible assets 11
Property, plant and equipment 16
Inventories 7
Receivables 11
Assets held for sale 51
Other current assets 6
Non-current liabilities 9
Current liabilities 7
Liabilities held for sale 16
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, creating a premier global coatings company.
shareholders, employees and other stakeholders. | in € millions | Performance Coatings | Decorative Paints | Total |
The terms of the agreement stipulate that Axalta shareholders will | The Netherlands | 29 | 52 | 81 |
receive 0.6539 shares of AkzoNobel stock for each share of Axalta | Other EMEA countries | 625 | 555 | 1,180 |
common stock owned, with AkzoNobel being the surviving entity. | North Asia | 273 | 108 | 381 |
South East and South Asia | 186 | 144 | 330 | |
In connection with the transaction, AkzoNobel intends to pay a | North America | 350 | - | 350 |
special cash dividend to AkzoNobel shareholders equal to €2.5 | Latin America | 120 | 171 | 291 |
billion, minus the aggregate amount of any regular annual and interim | Total | 1,583 | 1,030 | 2,613 |
dividends paid by AkzoNobel to AkzoNobel shareholders in 2026 | Timing of revenue recognition | |||
prior to completion. The special dividend is conditional on | Goods transferred at a point in time | 1,529 | 1,014 | 2,543 |
completion of the transaction and on the level of regular dividends | Services transferred over time | 54 | 16 | 70 |
paid in 2026. The merger agreement prohibits AkzoNobel to | Total | 1,583 | 1,030 | 2,613 |
repurchase shares up to the merger date. | ||||
January-March 2026 AkzoNobel shareholders will own approximately 55% and Axalta | ||||
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
Revenue disaggregationThe table below reflects the disaggregation of revenue. Additional disaggregation of revenue is included on the respective pages on Decorative Paints and Performance Coatings.
Revenue disaggregationHyperinflation accounting | ||
First quarter | ||
in € millions | 2025 | 2026 |
Revenue | (7) | 3 |
Operating income | (6) | (3) |
Hyperinflation: gain/loss on net monetary position | (6) | (13) |
Other financing income/expenses | - | - |
Profit before tax | (12) | (16) |
Income tax | (2) | - |
Profit for the period | (14) | (16) |
Non-controlling interests | 2 | 2 |
Net income | (12) | (14) |
January-March 2025
Hyperinflation accounting (Türkiye and Argentina)For Türkiye and Argentina, hyperinflation accounting is applied. The impact of the application of hyperinflation accounting, which includes the use of end of period rates to translate the income statement, is shown in the table below.
in € millions | Performance Coatings | Decorative Paints | Total |
The Netherlands | 25 | 50 | 75 |
Other EMEA countries | 593 | 548 | 1,141 |
North Asia | 254 | 107 | 361 |
South East and South Asia | 144 | 84 | 228 |
North America | 298 | - | 298 |
Latin America | 113 | 170 | 283 |
Total | 1,427 | 959 | 2,386 |
Timing of revenue recognition | |||
Goods transferred at a point in time | 1,372 | 944 | 2,316 |
Services transferred over time | 55 | 15 | 70 |
Total | 1,427 | 959 | 2,386 |
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.
If either of the companies terminate the merger agreement, the terminating party may be required to pay the other party a €150 million termination fee.
Regulatory filings progress in accordance with the expected timeline. At the end of March 2026, the company filed a first confidential submission of a Form F-4 with the US Securities and Exchange Commission (SEC) in connection with the proposed merger of AkzoNobel and Axalta and the anticipated listing on NYSE. The confidential submission remains subject to SEC review, and a public filing will follow in due course.
Hyperinflation impact on adjusted EBITDA for Q1 was €3 million negative (2025: €5 million negative).
Shareholders' equity and non-controlling interestsDevelopment of shareholders' equity
Shareholders' equity amounted to €4.9 billion at March 31, 2026, compared with €4.7 billion at year-end 2025. The main movements related to:
Profit for the period of €93 million
Positive currency effects of €114 million (net of taxes) driven by changes in the exchange rate of the euro versus other currencies, in particular the Colombian peso, Chinese yuan and US dollar
Dividend
The dividend policy remains unchanged and is to pay a stable to rising dividend.
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 for approval at the AGM on April 23, 2026.
Outstanding share capital
The outstanding share capital was 171.3 million common shares at the end of March 2026. The weighted average number of shares in Q1 2026 was 171.2 million shares.
Pensionsin € millions | 2025 | 2026 |
Cash and cash equivalents in the balance sheet | 1,599 | 2,763 |
The net balance sheet position (according to IAS19) of the pension
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 (no material developments)
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
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.
Cash flow reconciliationplans at the end of Q1 was a surplus of €0.6 billion (year-end 2025: surplus of €0.6 billion). In Q1 2026, gains from higher discount rates
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
March 31,
March 31,
were largely offset by losses from higher inflation rates and lower
plan asset returns in key countries.
Contingent liabilities/Project Ichthys updateA 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
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 (€2.9 billion as of March 31, 2026). 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 IAS 37 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
Debt to credit institutions (38) (18)
Held for sale
-
1
Total per statement of cash flows 1,561 2,746
Related partiesAkzoNobel purchased and sold goods and services to various related parties in which we hold a 50% or less equity interest (associates). These transactions were 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". Transactions with board members are limited to those conducted in their capacity as members of the Executive Committee or Supervisory Board.
Related party transactions with pension funds are limited to those inherent to the purpose of the pension funds.
Financial risk managementThe consolidated financial statements for the year ended
December 31, 2025, 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.
The carrying amount of the financial assets and current liabilities is a reasonable approximation of their fair value. The fair value of total borrowings (Level 1) as at March 31, 2026, was €5,946* million (December 31, 2025: €4,767 million); the carrying amount measured at amortized cost was €6,116 million (December 31, 2025: €4,862 million).
During the quarter there have been no material changes in the fair value hierarchy.
* Including borrowings held for sale (fair value €6 million; book value €6 million).
Operating income to adjusted EBITDA Alternative Performance MeasuresIn 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).
Adjusted EBITDA and Adjusted operating income
Adjusted EBITDA is operating income excluding depreciation, amortization and identified items. Adjusted operating income is operating income excluding identified items. These measures are used to evaluate the performance of the company and its segments. By excluding identified items, the comparability of the operational results increases and financial performance can be evaluated more effectively.
Management views adjusted EBITDA and adjusted operating income as appropriate measures for (segment) performance.
Adjusted EBITDA margin
First quarter 2025 First quarter 2026
Adjusted EBITDA margin is an operational profit margin. Adjusted
Performance Coatings | Decorative Paints | Other activities | Total in € millions | Performance Coatings | Decorative Paints | Other activities | Total | EBITDA margin is adjusted EBITDA as a percentage of revenue. The measure provides a clear picture of (the development of) profitability. | |
171 | 77 | (56) | 192 Operating income | 140 | 91 | (54) | 177 | ||
(14) | (29) | (7) | (50) Restructuring-related costs including impairments | (10) | (40) | (2) | (52) | Adjusted EBITDA margin |
185 | 109 | (30) | 264 Adjusted operating income | 150 | 131 | (27) | 254 | 1Adjusted EBITDA margin for Other activities is not shown, as this is not |
(46) | (38) | (9) | (93) Depreciation and amortization2 | (46) | (35) | (10) | (91) | meaningful |
231 | 147 | (21) | 357 Adjusted EBITDA | 196 | 166 | (17) | 345 |
- | (2) | (5) | (7) Merger and acquisitions1 | - | - | (22) | (22) |
- | (1) | - | (1) Hyperinflation | - | - | - | - |
- | - | (13) | (13) Legal and environmental | - | - | (2) | (2) |
- | - | (1) | (1) Other | - | - | (1) | (1) |
(14) | (32) | (26) | (72) Total identified items | (10) | (40) | (27) | (77) |
First quarter in % | 2025 | 2026 |
Performance Coatings | 14.6 | 13.7 |
Decorative Paints | 14.3 | 17.3 |
Other activities1 | ||
Total | 13.7 | 14.5 |
1 Includes preparation costs related to the Axalta merger
2 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 Financial highlights.
Capital expenditures
in € millions | 2025 | 2026 | |
Profit from continuing operations | 121 | 101 | |
Capital expenditures | Identified items reported in operating income | 72 | 77 |
First quarter | Identified items reported in interest | (2) | 2 |
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.
Adjusted earnings per share from continuing operationsFirst quarter January-March
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.
in € millions | 2025 | 2026 | Identified items reported in income tax | (17) | (19) | Return on investment (ROI) | |||
Investments in property, plant and equipment | 68 | 56 | Non-controlling interests | (14) | (8) | April 2024 - March 2025/April 2025 - March 2026 | |||
Investments in intangible assets | 3 | 2 | Adjusted net income from continuing operations | 160 | 153 | in % | 2025 | 2026 | |
Capital expenditures | 71 | 58 | Weighted average number of shares (in millions) | 170.8 | 171.2 | Performance Coatings | 19.9 | 17.5 | |
Adjusted earnings per share from | 0.94 | 0.89 | Decorative Paints | 12.2 | 15.5 | ||||
Organic sales growth
Organic sales growth excludes 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 growth 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 Performance Coatings and Decorative Paints sections.
continuing operations
(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 capitalin € millions | 2025 | 2026 | ∆% | more effectively. | |
Performance Coatings | 3,733 | 3,596 | (4%) | ||
Decorative Paints | 3,901 | 3,391 | (13%) | Adjusted gross margin | |
Other activities | 759 | 877 | First quarter |
Identified items | (34) | (37) |
Adjusted gross profit | 1,082 | 1,015 |
Adjusted gross margin | 41.4 | 42.5 |
April 2024 - March 2025/April 2025 - March 2026
Other activities1
Total 13.1 13.6
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
Trade working capital | Total | 8,393 | 7,864 | (6%) | 2025 | 2026 | |
Trade working capital is defined as the sum of inventories, trade | Gross profit | 1,048 | 978 |
receivables and trade payables. When expressed as a ratio, trade
working capital is measured against four times last quarter revenue. A reconciliation of trade working capital to the most directly comparable IFRS measure is available in the Financial highlights.
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 comparing performance over time, as well as to industry benchmarks and peers.
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 April 2024 - March 2025/April 2025 - March 2026 | ||
in € millions | 2025 | 2026 |
Operating income | 848 | 1,149 |
Depreciation and amortization1 | 369 | 361 |
Identified items | 255 | (78) |
Adjusted EBITDA | 1,472 | 1,432 |
1 Excluding identified items. | ||
Leverage ratio | ||
April 2024 - March 2025/April 2025 - March 2026 in € millions | 2025 | 2026 |
Net debt1 | 4,115 | 3,077 |
Adjusted EBITDA | 1,472 | 1,432 |
Leverage ratio | 2.8 | 2.1 |
1 Breakdown of net debt is available in the Financial highlights. | ||
Quarterly statistics
Q1 | Q2 | Q3 | Q4 | 2025 Full-year | in € millions | 2026 Q1 | |
Revenue | |||||||
1,583 | 1,546 | 1,492 | 1,447 | 6,068 | Performance Coatings | 1,427 | |
1,030 | 1,080 | 1,055 | 925 | 4,090 | Decorative Paints | 959 | |
2,613 | 2,626 | 2,547 | 2,372 | 10,158 | Total | 2,386 | |
EBITDA* | |||||||
217 | 193 | (91) | 166 | 485 | Performance Coatings | 187 | |
116 | 139 | 186 | 113 | 554 | Decorative Paints | 127 | |
(47) | (26) | (30) | 606 | 503 | Other activities | (44) | |
286 | 306 | 65 | 885 | 1,542 | Total | 270 | |
Adjusted EBITDA (excluding Identified items)* | |||||||
231 213 | 209 | 190 | 843 | Performance Coatings | 196 | ||
147 192 | 184 | 125 | 648 | Decorative Paints | 166 | ||
(21) (12) | (8) | (6) | (47) | Other activities | (17) | ||
357 393 | 385 | 309 | 1,444 | Total | 345 | ||
13.7 15.0 | 15.1 | 13.0 | 14.2 | Adjusted EBITDA margin (in %) | 14.5 | ||
Depreciation and amortization | |||||||
(46) (43) | (47) | (49) | (185) | Performance Coatings | (47) | ||
(39) (38) | (37) | (39) | (153) | Decorative Paints | (36) | ||
(9) (11) | (10) | (10) | (40) | Other activities | (10) | ||
(94) (92) | (94) | (98) | (378) | Total | (93) | ||
Depreciation and amortization (excluding Identified items)
(46) | (43) | (44) | (45) | (178) Performance Coatings | (46) |
(38) | (36) | (34) | (37) | (145) Decorative Paints | (35) |
(9) | (11) | (10) | (10) | (40) Other activities | (10) |
(93) | (90) | (88) | (92) | (363) Total | (91) |
* 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
Q1 | Q2 | Q3 | Q4 | 2025 Full-year | in € millions | 2026 Q1 |
Operating income | ||||||
171 | 150 | (138) | 117 | 300 | Performance Coatings | 140 |
77 | 101 | 149 | 74 | 401 | Decorative Paints | 91 |
(56) | (37) | (40) | 596 | 463 | Other activities | (54) |
192 | 214 | (29) | 787 | 1,164 | Total | 177 |
Identified items included in operating income | ||||||
(14) | (20) | (303) | (28) | (365) Performance Coatings | (10) | |
(32) | (55) | (1) | (14) | (102) Decorative Paints | (40) | |
(26) | (14) | (22) | 612 | 550 Other activities | (27) | |
(72) | (89) | (326) | 570 | 83 Total | (77) | |
Adjusted operating income (excluding Identified items)* | ||||||
185 | 170 | 165 | 145 | 665 | Performance Coatings | 150 |
109 | 156 | 150 | 88 | 503 | Decorative Paints | 131 |
(30) | (23) | (18) | (16) | (87) | Other activities | (27) |
264 | 303 | 297 | 217 | 1,081 | Total | 254 |
Reconciliation financing income and expenses | ||||||
14 | 10 | 12 | 13 | 49 Financing income | 15 | |
(42) | (48) | (45) | (41) | (176) Financing expenses | (40) | |
(28) | (38) | (33) | (28) | (127) Net interest on net debt | (25) | |
Other interest | ||||||
8 | 8 | 8 | 8 | 32 Financing income related to post-retirement benefits | 8 | |
- | (2) | (25) | (8) | (35) Interest on provisions | (2) | |
(10) | (18) | (26) | (15) | (69) Other items | (18) | |
(2) | (12) | (43) | (15) | (72) Net other financing charges | (12) | |
(30) | (50) | (76) | (43) | (199) Financing income and expenses | (37) | |
* 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
Q1 | Q2 | Q3 | Q4 | 2025 Full-year | 2026 Q1 | |
Quarterly net income analysis (in € millions) | ||||||
7 | 15 | 9 | 2 | 33 | Results from associates | 8 |
169 | 179 | (96) | 746 | 998 | Profit before tax | 148 |
(48) | (44) | (94) | (140) | (326) | Income tax | (47) |
121 | 135 | (190) | 606 | 672 | Profit for the period from continuing operations | 101 |
28 | 25 | (98) | 19 | 33 | Effective tax rate (in %) | 32 |
Earnings per share from continuing operations (in €) | ||||||
0.63 | 0.73 | (1.13) | 3.50 | 3.72 | Basic | 0.54 |
0.62 | 0.72 | (1.12) | 3.48 | 3.70 | Diluted | 0.54 |
Earnings per share from discontinued operations (in €)
- - | (0.01) | - (0.01) Basic | - |
- - | (0.01) | - (0.01) Diluted | - |
Earnings per share from total operations (in €)
0.63 | 0.73 | (1.13) | 3.50 | 3.71 | Basic | 0.54 |
0.62 | 0.72 | (1.13) | 3.48 | 3.69 | Diluted | 0.54 |
Number of shares (in millions) | ||||||
170.8 | 171.0 | 171.0 | 171.1 | 171.0 | Weighted average number of shares | 171.2 |
170.9 | 171.0 | 171.1 | 171.1 | 171.1 | Number of shares at end of quarter | 171.3 |
Adjusted earnings from continuing operations (in € millions)* | ||||||
121 | 135 | (190) | 606 | 672 | Profit from continuing operations | 101 |
72 | 89 | 326 | (570) | (83) | Identified items reported in operating income | 77 |
(2) | - | 24 | (2) | 20 | Identified items reported in interest | 2 |
(17) | (20) | 15 | 70 | 48 | Identified items reported in income tax | (19) |
(14) | (11) | (3) | (8) | (36) | Non-controlling interests | (8) |
160 | 193 | 172 | 96 | 621 | Adjusted net income from continuing operations | 153 |
0.94 | 1.13 | 1.01 | 0.56 | 3.63 | Adjusted earnings per share from continuing operations (in €) | 0.89 |
* 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.
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, pension curtailments and buyouts, 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 as included within cost of sales. Organic sales growth 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 statementThis 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.
Important information regarding the proposed Axalta transactionGeneral 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 RELATEDMATTERS. 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 trademarksIn 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
AkzoNobel Investor Relations T +31 88 969 0139
Financial calendarAnnual General Meeting of shareholders April 23, 2026 Ex-dividend date April 27, 2026
Record date April 29, 2026
Payment date May 6, 2026
For more information:
The explanatory sheets used during the press conference can be viewed on AkzoNobel's corporate website: https://www.akzonobel.com
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