(AGENPARL) – Wed 23 April 2025 AkzoNobel | Report for the first quarter 2025
Our results at a glance
Highlights Q1 2025 (compared with Q1 2024)
Organic sales flat; revenue down 1%
Operating income €192 million (2024: €261 million), mainly impacted by restructuring costs
Efficiency actions ahead of schedule
Adjusted EBITDA €357 million (adjusted EBITDA margin: 13.7%), flat at constant currencies
Higher prices and strong cost reduction compensating for lower volumes and inflation
Net cash from operating activities negative €112 million (2024: negative €170 million)
Outlook*
Subject to ongoing market uncertainties and assuming constant currencies, AkzoNobel expects to deliver
2025 adjusted EBITDA above €1.55 billion.
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.
Summary of financial results
Revenue
2,640
2,613
Operating income
(26%)
Identified items*
Adjusted operating income*
Adjusted EBITDA*
Adjusted EBITDA margin (%)*
Average invested capital*
8,182
8,393
ROI (%)*
Capital expenditures*
Net debt*
* Outlook represents current company expectations based on organic volumes, subject to ongoing market uncertainties and assuming constant
currencies.
4,031
4,115
Leverage ratio
Net cash from operating activities
(170)
(112)
Free cash flow*
Number of employees (FTEs)
The company targets leverage below 2.5 times net debt/adjusted EBITDA by the end of 2025 and around
2 times in the mid-term, while remaining committed to retaining a strong investment grade credit rating.
January-March
First quarter
in € millions/%
Net income attributable to shareholders
(211)
(183)
35,500
34,100
Weighted average number of shares (in millions)
170.6
170.8
Earnings per share from total operations (in €)
Adjusted earnings per share from continuing operations (in €)*
* 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 (APM)
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.”
AkzoNobel | Report for the first quarter 2025
Financial highlights
Q1 2025
Revenue
First quarter
Revenue
Organic sales flat, with an increase in price/mix offset by lower
volumes. Price/mix was up 2%, mainly due to positive pricing. Lower
volumes include the in-year commercial rebalancing in Türkiye, as
well as the impact of macro-economic uncertainties, particularly in
North America.
Adverse currencies impacted revenue by 1%, resulting in 1% lower
revenue.
Organic*
1,030
1,583
2,613
in € millions
Decorative Paints
1,056
Performance Coatings
1,584
Total
2,640
in % versus
Q1 2024
Volume
Decorative
Paints
Price/ Organic
sales
Acq./
Other Revenue
Performance
Coatings
Total
* 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 %
sales
Q1 24
Q2 24
Q3 24
Q4 24
Q1 25
Decorative Paints
Performance Coatings
Total
Revenue development Q1 2025
Price/mix development per
quarter (year-on-year) in %
Q1 24
Q2 24
Q3 24
Q4 24
Q1 25
Decorative Paints
Performance Coatings
Total
Volume
Collaborative robot learns how to paint
Colleagues at our Sikkens Wood Coatings business have been working with
Nordbo Robotics to develop a fast robot programming solution. Trained by
humans, it copies the movements of expert craftsmen to carry out intricate wood
coating applications. It will help address skilled labor shortages and its compact
size means operators can safely work alongside, using it as they would any tool.
Price/mix
Organic
sales
Acq./div.
Other
Revenue
Organic sales development per
quarter (year-on-year) in %
Q1 24
Q2 24
Q3 24
Q4 24
Q1 25
Decorative Paints
Performance Coatings
Total
Q1 25
Revenue development per
quarter (year-on-year) in %
Q1 24
Q2 24
Q3 24
Q4 24
Decorative Paints
Performance Coatings
Total
AkzoNobel | Report for the first quarter 2025
Financial highlights
Q1 2025
Income tax
Operating income
The effective tax rate was 28.4% (2024: 22.6%). The lower tax
rate in the prior year was primarily due to the release of a
provision for an uncertain tax position.
Operating income at €192 million (2024: €261 million) was
impacted by identified items of negative €72 million (2024:
negative €13 million), mainly related to restructuring costs from
our industrial excellence and SG&A programs.
Adjusted EBITDA
Adjusted EBITDA at €357 million (2024: €363 million). An
increase in gross margins and cost mitigating measures enabled
us to absorb the majority of the impact of lower revenues.
Operating expenses back at 2024 level, despite wage and
general inflation. Adjusted EBITDA margin at 13.7% (2024:
13.8%).
Net income
Net income attributable to shareholders was €107 million (2024:
€181 million). Earnings per share from total operations was
€0.63 (2024: €1.06).
Adjusted EBITDA*
First quarter
January-March
in € millions
Decorative Paints
Performance Coatings
Other activities
Total
* 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
First quarter
January-March
in € millions
Decorative Paints
(34%)
Performance Coatings
Other activities
Total
(26%)
Financing income and expenses
Financing income and expenses amounted to negative €30
million (2024: negative €16 million). The €14 million increase in
expenses is mainly due to hyperinflation accounting, partly offset
by less negative exchange rate results. Prior year comparatives
also contained the positive interest impact related to the release
of a provision for an uncertain tax position.
Operating income to net income
First quarter
in € millions
JanuaryMarch
Operating income
Financing income and expenses
Results from associates
Profit before tax
Income tax
Profit from continuing operations
Profit from discontinued operations
Profit for the period
Non-controlling interests
Net income
AkzoNobel | Report for the first quarter 2025
Decorative Paints
Highlights Q1 2025
Organic sales down 1%, revenue down 2%
Adjusted EBITDA margin at 14.3% (2024: 14.8%)
Q1 2025
Latin America
Revenue
Q1 organic sales up 5% due to positive pricing more than offsetting
lower volumes; revenue down 7%. Pricing was positive, also when
excluding inflationary pricing in Argentina. Volumes were lower,
driven by Brazil and Colombia. In Brazil, volumes were impacted by
the timing of our price increases, while the market in Colombia
showed signs of recovery during the quarter.
in € millions
Organic*
Decorative Paints EMEA
Decorative Paints Latin America
Decorative Paints Asia
1,056
1,030
Total
Organic sales down 1%, with an increase in price/mix more than
offset by lower volumes. Deco EMEA volumes were impacted by inyear commercial rebalancing in Türkiye. Volumes in China were
down, although sequentially better.
Price/mix up 2%, driven by positive pricing in Deco EMEA and Deco
LATAM.
Currencies negatively impacted revenue by 1%, resulting in 2% lower
revenue.
Operating income at €77 million (2024: €116 million) was impacted
by identified items of negative €32 million (2024: negative €4 million),
mainly due to restructuring programs.
Q1 organic sales were down 5% and revenue down 3%. Price/mix
continued to be down, while pricing stabilized in China. Volumes
were down in China but improved sequentially. In SESA, volumes
were lower in Indonesia and India, with India outperforming a soft
market.
Europe, Middle East and Africa
Q1 organic sales and revenue down 1%. An increase in price/mix
was offset by lower volumes. The majority of the volume decline was
caused by in-year commercial rebalancing in Türkiye. Volumes were
higher in Central and Eastern Europe. Trends in the Professional
segment improved.
Other
Revenue
Volume
Adjusted EBITDA at €147 million (2024: €156 million). Adjusted
EBITDA margin at 14.3% (2024: 14.8%).
Key financial figures
Excluding identified items, operating income was impacted by lower
revenue, with flat gross margins and operating expenses.
* 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.
Revenue development Q1 2025
Price/mix
Organic
sales
Acq./div.
January-March
First quarter
First quarter
January-March
in € millions/%
Operating income
(34%)
Identified items1
Depreciation and amortization,2
Adjusted EBITDA1
Adjusted EBITDA margin (%)1
Average invested capital1
3,735
3,901
ROI (%)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.
Excluding identified items.
AkzoNobel | Report for the first quarter 2025
Performance Coatings
Highlights Q1 2025
Organic sales up 1%; revenue flat
Adjusted EBITDA margin increased to 14.6% (2024: 14.0%)
Q1 2025
Organic sales up 1%, driven by positive pricing in all businesses,
partly offset by lower volumes. Double digit volume growth in Marine
and Protective Coatings was more than offset by macro-economic
uncertainties impacting volumes, particularly in North America.
Currencies negatively impacted revenue by 1%, resulting in revenue
being flat.
Operating income at €171 million (2024: €176 million), impacted by
identified items of negative €14 million (2024: negative €1 million),
mainly due to restructuring programs.
Automotive and Specialty Coatings
Revenue
Q1 organic sales and revenue down 5%. Lower volumes reflected
continued weak demand within automotive and vehicle refinishes in
North America and Europe, while price/mix was positive. Aerospace
volumes were impacted by OEM challenges in North America, while
volumes were higher in Europe.
Industrial Coatings
Adjusted EBITDA increased to €231 million (2024: €221 million).
Adjusted EBITDA margin increased to 14.6% (2024: 14.0%).
Powder Coatings
Q1 organic sales down 3% and revenue down 4%. Higher volumes
in the industrial & consumer segments were more than offset by
lower volumes in automotive and architectural segments.
Marine and Protective Coatings
Q1 organic sales up 13% and revenue up 12%, with continued
strong growth in marine new-build and notable improvement in
protective, both delivering double digit growth.
Powder Coatings
Marine and Protective Coatings
Automotive and Specialty Coatings
Industrial Coatings
1,584
1,583
* 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
Revenue development Q1 2025
Excluding identified items, operating income increased due to a
combination of higher revenue, a slight increase in gross margins
and lower operating expenses.
Organic*
in € millions
Total
Q1 organic sales down 1%, revenue down 3%. Volumes in coil and
packaging were down, while wood adhesives and wood finishes
were slightly up. Packaging volumes were lower due to strong prior
year comparatives.
January-March
First quarter
Volume
Price/mix
Organic
sales
Acq./div.
Other
First quarter
January-March
in € millions / %
Operating income
Identified items1
Depreciation and amortization2
Adjusted EBITDA1
Adjusted EBITDA margin (%)1
Average invested capital1
3,805
3,733
ROI (%)1
Revenue
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.
Excluding identified items.
AkzoNobel | Report for the first quarter 2025
Condensed consolidated financial statements
Condensed consolidated statement of income
Condensed consolidated statement of comprehensive income
First quarter
March
in € millions
Condensed consolidated balance sheet
First quarter
March
in € millions
Profit for the period
in € millions
December 31,
March 31, 2025
Assets
Continuing operations
Non-current assets
Revenue
2,640
2,613
Other comprehensive income
Cost of sales
(1,553)
(1,565)
Exchange differences arising on translation of foreign operations
Intangible assets
4,049
3,991
Gross profit
1,087
1,048
Post-retirement benefits
Property, plant and equipment
2,122
2,109
SG&A costs
(825)
(855)
Right-of-use assets
Other results
Tax relating to components of
other comprehensive income
Operating income
Other comprehensive income for the period (net of tax)
Financing income and expenses
Comprehensive income for the period
Results from associates
Profit before tax
Income tax
Profit for the period from continuing operations
Comprehensive income for the period attributable to
Shareholders of the company
Non-controlling interests
Comprehensive income for the period
Other non-current assets
1,924
1,907
Total non-current assets
8,413
8,324
Inventories
1,721
1,777
Trade and other receivables
2,498
2,809
Current tax assets
Short-term investments
1,302
1,599
Current assets
Cash and cash equivalents
Discontinued operations
Total current assets
5,836
6,526
Total assets
14,249
14,850
Shareholders of the company
4,816
4,862
Non-controlling interests
Profit for the period
Provisions and deferred tax liabilities
1,032
1,025
Long-term borrowings
3,671
4,170
Total non-current liabilities
4,703
5,195
Short-term borrowings
1,697
1,717
Trade and other payables
2,740
2,787
Current tax liabilities
Current portion of provisions
Total current liabilities
4,730
4,793
Total equity and liabilities
14,249
14,850
Profit/(loss) for the period from discontinued operations
Profit for the period
Equity and liabilities
Attributable to
Group equity
Non-current liabilities
Current liabilities
AkzoNobel | Report for the first quarter 2025
Cash flows
Free cash flow
Consolidated statements of cash flows
Net cash from operating activities in Q1 was an outflow of €112
million (2024: outflow of €170 million). The improvement compared
to Q1 2024 is mainly due to a lower outflow from changes in working
capital.
First quarter
JanuaryMarch
in € millions
Net cash and cash equivalents at beginning of period
1,453
1,273
Net cash from investing activities in Q1 was an outflow of €63 million
(2024: inflow of €219 million). Q1 2024 contained a high net inflow
from short-term investments.
Profit for the period from continuing operations
Amortization and depreciation
Impairment losses
First quarter
Financing income and expenses
in € millions
Results from associates
EBITDA
Pre-tax result on acquisitions and divestments
Impairment losses
Pre-tax results on acquisitions and divestments
(418)
(336)
Net cash from financing activities in Q1 was an inflow of €471 million
(2024: outflow of €581 million), mainly due to proceeds from a €500
million bond issuance in the quarter.
Income tax
At March 31, 2025, net debt was €4,115 million (December 31,
2024: €3,901 million). The increase was mainly due to seasonal build
up of working capital and cash outflow related to our restructuring
programs. Net debt/adjusted EBITDA at March 31, 2025, was 2.8
(December 31: 2024: 2.6).
Net debt
March 31,
December 31,
March 31,
(165)
(173)
Cash and cash equivalents
(1,069)
(1,302)
(1,599)
Long-term borrowings
3,183
3,671
4,170
Short-term borrowings
1,946
1,697
1,717
Total
4,031
3,901
4,115
in € millions
Short-term investments
Consolidated statement of free cash flows
JanuaryMarch
(336)
Changes in working capital
Changes in post-retirement benefit provisions
Other changes in provisions
Changes in other provisions
Interest paid
Interest paid
Income tax paid
Other changes
Net cash generated from/(used for) operating activities
(170)
(112)
Changes in working capital
Net debt
The free cash flow in Q1 2025 improved compared with Q1 2024,
mainly due to a lower outflow from changes in working capital, partly
offset by higher cash out for our industrial excellence and SG&A
restructuring programs, and higher capital expenditures.
Income tax paid
Other changes
(418)
Net cash generated from/(used for) operating activities
(170)
(112)
Capital expenditures
Capital expenditures
Free cash flow
(211)
(183)
Investments in short-term investments
Repayments of short-term investments
Other changes
Acquisitions and divestments net of cash acquired/divested
Net cash generated from/(used for) investing activities
Changes from borrowings
(573)
Dividends paid
Net cash generated from/(used for) financing activities
(581)
Net cash generated from/(used for) continuing operations
(532)
Cash flows from discontinued operations
Net change in cash and cash equivalents total operations
Effect of exchange rate changes on cash and cash equivalents
Net cash and cash equivalents at March 31
(535)
1,561
AkzoNobel | Report for the first quarter 2025
Shareholders’ equity
Shareholders’ equity amounted to €4.6 billion at March 31, 2025,
compared with €4.6 billion at year-end 2024. The main movements
in 2025 related to profit for the period of €107 million and negative
currency effects of €73 million (net of taxes).
Dividend
The dividend policy remains unchanged and is to pay a stable to
rising dividend.
In 2024, an interim dividend of €0.44 per share was paid (2023:
€0.44). A final 2024 dividend of €1.54 (2023: €1.54) per common
share is proposed for approval at the AGM on April 25, 2025.
Outstanding share capital
The outstanding share capital was 170.9 million common shares at
the end of March 2025. The weighted average number of shares in
Q1 2025 was 170.8 million shares.
Consolidated statement of changes in equity
in € millions
Subscribed
share capital
Other (legal)
reserves and
undistributed
profit
Cumulative
Cash flow
translation
hedge reserve reserves
Shareholders’
equity
Noncontrolling
interests
Group equity
Balance at December 31, 2023
(711)
4,948
4,322
4,546
Profit for the period
Other comprehensive income/(expense)
Tax on other comprehensive income
Comprehensive income for the period
Dividend
Equity-settled transactions
Balance at March 31, 2024
(619)
5,110
4,576
4,809
Balance at December 31, 2024
(579)
5,068
4,574
4,816
Profit for the period
Other comprehensive income/(expense)
Tax on other comprehensive income
Comprehensive income for the period
Dividend
Equity-settled transactions
Balance at March 31, 2025
(652)
5,191
4,624
4,862
AkzoNobel | Report for the first quarter 2025
Invested capital
Trade working capital
Invested capital* at March 31, 2025, totaled €8.5 billion, up €0.2
billion from year-end 2024. This increase was mainly caused by
normal seasonality resulting in higher trade receivables and
inventories.
Trade working capital* was €1.9 billion at March 31, 2025 (March 31,
2024: €1.9 billion). Trade working capital as a percentage of revenue
was 18.0% in Q1 2025, which is the same as in Q1 2024.
Trade working capital
Invested capital
As % of revenue
March 31,
December 31,
March 31,
Trade receivables
2,457
2,144
2,414
Inventories
1,779
1,721
1,777
Trade payables
(2,331)
(2,220)
(2,310)
Trade working capital
1,905
1,645
1,881
in € millions
Other working capital items
(273)
(137)
Non-current assets
8,479
8,413
8,324
Less investments in associates
(223)
(227)
(234)
(1,026)
(929)
(931)
Q1 24
Less pension assets
Deferred tax liabilities
(519)
(491)
(501)
Invested capital
8,343
8,274
8,511
Q2 24
Q3 24
Q4 24
Embracing circularity by reusing industrial residue to make paint
Industrial residue is being used by AkzoNobel in Brazil as a more sustainable raw
material for making paint. Nearly a third of the total residue generated during
industrial effluent treatment at the Mauá plant in São Paulo goes into the
manufacture of Coral Pinta Piso floor paint. As well as helping to eliminate landfill
disposal, it’s also contributing to the preservation of natural resources.
Q1 25
* Alternative performance measures: For more details on these measures, refer to the Notes to
the condensed consolidated financial statements, APM paragraph.
AkzoNobel | Report for the first quarter 2025
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.
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 containing 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”.
Basis of preparation
Seasonality
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.
Revenue 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
whether paints and coatings can be applied.
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 are to be 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.
In Performance Coatings, revenue and profitability vary, among
others, with building patterns from original equipment manufacturers.
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”.
Other activities
In Other activities, we report activities which are not allocated to a
particular segment.
Revenue disaggregation
The table below reflects the disaggregation of revenue. Additional
disaggregation of revenue is included on the respective pages of
Decorative Paints and Performance Coatings.
Revenue disaggregation
January-March 2025
in € millions
Decorative Paints
Performance Coatings
Other
The Netherlands
Other EMEA countries
1,180
North Asia
South East and South Asia
North America
Latin America
1,030
1,583
2,613
1,014
1,529
2,543
1,030
1,583
2,613
Total
Total
Timing of revenue recognition
Goods transferred at a point in time
Services transferred over time
Total
AkzoNobel | Report for the first quarter 2025
Hyperinflation accounting (Türkiye and
Argentina)
Financial risk management
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 statement of the
income statement, is shown in the table below.
Hyperinflation accounting
First quarter
March
in € millions
Revenue
Operating income
Hyperinflation: gain/loss on net monetary position
Other financing income/expenses
Profit before tax
Income tax
Profit for the period
Non-controlling interests
Net income
Hyperinflation impact on adjusted EBITDA for Q1 was negative €5
million (2024: negative €8 million).
Workforce
At March 31, 2025, the number of employees was 34,100 (March
31, 2024: 35,500).
Pensions
The net balance sheet position (according to IAS 19) of the pension
plans at the end of Q1 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 higher discount rates and lower plan asset returns
in key countries.
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.
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 March 31, 2025, was €5,758 million (December 31,
2024: €5,256 million); the carrying amount measured at amortized
cost was €5,887 million (December 31, 2024: €5,368 million).
During the year there have been no material changes in the fair value
hierarchy.
Related parties
AkzoNobel traded goods and services with various related parties in
which we hold a 50% or less equity interest (associates). 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”.
In the ordinary course of business, we have transactions with various
organizations with which certain members of the Supervisory Board
and Executive Committee are associated.
Alternative performance measures
In presenting and discussing AkzoNobel’s operating results,
management uses certain alternative performance measures (APM)
not defined by IFRS Accounting Standards. Management considers
these alternative performance measures 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.
Alternative performance measures 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. Alternative performance
measures 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 alternative performance
measures 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, 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.
AkzoNobel | Report for the first quarter 2025
Adjusted EBITDA margin
Free cash flow
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.
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.
Adjusted EBITDA margin
First quarter
March
Decorative Paints
Performance Coatings
Other activities*
Total
Capital expenditures
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 investments in fixed assets.
First quarter
March
in € millions
Purchase of property, plant and equipment
Purchase of intangible assets
Capital expenditures
Organic sales
Organic sales exclude the impact of changes in consolidation, the
impact of changes in foreign exchange rates and the impact of
hyperinflation accounting.
* Adjusted EBITDA margin for Other activities is not shown, as this is not meaningful
The impact of changes in foreign exchange rates is calculated by retranslating the prior year local currency amounts into euros at the
current year’s foreign exchange rates.
Operating income to adjusted EBITDA
Operating income to adjusted EBITDA
First quarter 2024
First quarter 2025
Decorative
Paints
Performance
Coatings
Other
activities
Decorative
Paints
Performance
Coatings
Other
activities
Total
261 Operating income
(12) Restructuring-related costs
(1) Acquisition/divestment-related
costs
— Hyperinflation
— Legal and environmental
— Other
(13) Total identified items
274 Adjusted operating income
(89) Depreciation and amortization*
363 Adjusted EBITDA
* Excluding identified items
Total in € millions
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.
Trade working capital
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.
A reconciliation of trade working capital to the most directly
comparable IFRS measure is available in the condensed
consolidated financial statements.
Management uses trade working capital to evaluate our 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 of the company. It helps with comparing
performance over time, as well as to industry benchmarks and
peers.
AkzoNobel | Report for the first quarter 2025
Adjusted earnings per share from continuing
operations
April 2023 – March 2024/April 2024 – March 2025
First quarter
March
in € millions
Profit from continuing operations
Identified items reported in operating income
Identified items reported in interest
Identified items reported in income tax
Non-controlling interests
Weighted average number of shares (in millions)
170.6
170.8
Adjusted earnings per share from
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.
Decorative Paints
Performance Coatings
Other activities*
Total
* ROI for Other activities is not shown, as this is not meaningful.
Leverage ratio
Consistent with other companies in the industry, management
monitors capital headroom based on the leverage ratio net debt/
adjusted EBITDA. The leverage ratios are calculated based on the
net debt per balance sheet position divided by adjusted EBITDA of
the last 12 months.
April 2023 – March 2024/April 2024 – March 2025
April 2023 – March 2024/April 2024 – March 2025
in € millions
Operating income
1,108
in € millions
Decorative Paints
3,735
3,901
Performance Coatings
3,805
3,733
Total
8,182
8,393
Management uses average invested capital to monitor, assess and
optimize the total amount of capital invested.
Identified items
Adjusted EBITDA
Subject to ongoing market uncertainties and assuming constant
currencies, AkzoNobel expects to deliver 2025 adjusted EBITDA
above €1.55 billion.
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 targets leverage below 2.5 times net debt/adjusted
EBITDA by the end of 2025 and around 2 times in the mid-term,
while remaining committed to retaining a strong investment grade
credit rating.
Outlook represents current company expectations based on organic volumes, subject to
ongoing market uncertainties and assuming constant currencies
Amsterdam, April 22, 2025
The Board of Management
Adjusted EBITDA
Depreciation and amortization*
Average invested capital
Other activities
Outlook*
Return on investment (ROI)
Adjusted net income from continuing operations
1,487
1,472
* Excluding identified items.
Leverage ratio
April 2023 – March 2024/April 2024 – March 2025
in € millions
Net debt*
4,031
4,115
Adjusted EBITDA
1,487
1,472
Return on investment (ROI)
Leverage ratio
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.
* Breakdown of net debt is available in the net debt paragraph in the condensed consolidated
financial statements section.
Greg Poux-Guillaume
Maarten de Vries
AkzoNobel | Report for the first quarter 2025
Quarterly statistics
Full-year in € millions
1,056
1,139
1,089
1,017
4,301 Decorative Paints
1,030
1,584
1,645
1,579
1,602
6,410 Performance Coatings
1,583
2,640
2,784
2,668
2,619
10,711 Total
2,613
556 Decorative Paints
862 Performance Coatings
(130) Other activities
1,288 Total
Revenue
EBITDA*
Adjusted EBITDA (excluding Identified items)*
635 Decorative Paints
913 Performance Coatings
(70) Other activities
1,478 Total
13.8 Adjusted EBITDA margin (in %)
Depreciation and amortization
(151) Decorative Paints
(183) Performance Coatings
(37) Other activities
(371) Total
Depreciation and amortization (excluding Identified items)
(150) Decorative Paints
(178) Performance Coatings
(37) Other activities
(365) Total
* 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.
AkzoNobel | Report for the first quarter 2025
Quarterly statistics
Full-year in € millions
405 Decorative Paints
679 Performance Coatings
Operating income
(167) Other activities
917 Total
Identified items included in operating income
(80) Decorative Paints
(56) Performance Coatings
(60) Other activities
(100)
(196) Total
Adjusted operating income (excluding Identified items)*
485 Decorative Paints
735 Performance Coatings
(107) Other activities
1,113 Total
Reconciliation financing income and expenses
61 Financing income
(187) Financing expenses
(126) Net interest on net debt
Other interest
27 Financing income related to post-retirement benefits
(3) Interest on provisions
— Other items
24 Net other financing charges
(102) Financing income and expenses
* 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.
AkzoNobel | Report for the first quarter 2025
Quarterly statistics
Full-year
Quarterly net income analysis (in € millions)
23 Results from associates
838 Profit before tax
(246) Income tax
592 Profit for the period from continuing operations
29 Effective tax rate (in %)
Earnings per share from continuing operations (in €)
3.17 Basic
3.16 Diluted
Earnings per share from discontinued operations (in €)
(0.01)
— Basic
(0.01)
— Diluted
Earnings per share from total operations (in €)
3.17 Basic
3.16 Diluted
Number of shares (in millions)
170.6
170.7
170.8
170.8
170.7 Weighted average number of shares1
170.8
170.6
170.8
170.8
170.8
170.8 Number of shares at end of quarter1
170.9
Adjusted earnings from continuing operations (in € millions)*
592 Profit from continuing operations
196 Identified items reported in operating income
(21) Identified items reported in interest
(54) Identified items reported in income tax
(50) Non-controlling interests
663 Adjusted net income from continuing operations
3.88 Adjusted earnings per share from continuing
operations (in €)
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.
AkzoNobel | Report for the first quarter 2025
Glossary
Adjusted earnings per share are the basic earnings per share
from continuing operations, excluding Identified items and taxes
thereon.
Adjusted EBITDA is operating income excluding depreciation,
amortization and Identified items.
Adjusted EBITDA margin is adjusted EBITDA as percentage of
revenue.
Adjusted operating income is operating income excluding
Identified items.
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.
SESA is South East and South Asia and includes the Pacific.
Average invested capital is the average of the quarter-end
invested capital balances for the last four quarters.
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.
Latin America excludes Mexico.
Leverage ratio is calculated as net debt divided by adjusted
EBITDA, which is calculated as the total of 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.
Capital expenditures is the total of investments in property, plant
and equipment and investments in intangible assets.
North Asia includes, among others, China, Japan and South Korea.
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.
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.
Constant currencies calculations exclude the impact of changes in
foreign exchange rates by retranslating the prior year local currency
amounts into euros at the current year’s foreign exchange rates.
EBITDA is operating income excluding depreciation and
amortization.
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.
EMEA is Europe, Middle East and Africa.
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.
Free cash flow is net cash generated from/(used for) operating
activities minus capital expenditures.
Other working capital is defined as other receivables, plus current
tax assets, less other payables and current tax liabilities.
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.
ROI is adjusted operating income of the last 12 months as
percentage of average invested capital.
EBITDA margin is EBITDA as a percentage of revenue.
SG&A costs include selling and distribution expenses, general and
administrative expenses and research, development and innovation
expenses.
Safe harbor statement
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.
AkzoNobel | Report for the first quarter 2025
Akzo Nobel N.V.
Christian Neefestraat 2
P.O. Box 75730
1070 AS Amsterdam, the Netherlands
http://www.akzonobel.com
For more information:
The explanatory sheets used during the press conference can be
viewed on AkzoNobel’s corporate website: http://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 http://www.akzonobel.com.
© 2025 Akzo Nobel N.V. All rights reserved.
AkzoNobel Global Communications
AkzoNobel Investor Relations
Financial calendar
Annual General Meeting of shareholders
Ex-dividend date of 2024 final dividend
Record date of 2024 final dividend
Payment of 2024 final dividend
Report for the second quarter 2025
April 25, 2025
April 29, 2025
April 30, 2025
May 7, 2025
July 22, 2025