(AGENPARL) – Tue 22 July 2025 AkzoNobel | Report for the second quarter and half-year 2025
Our results at a glance
Highlights Q2 2025 (compared with Q2 2024)
Organic sales flat, pricing up 2%; revenue down 6% on adverse currencies
Operating income €214 million (2024: €270 million), mainly impacted by restructuring costs
Adjusted EBITDA €393 million, including €24 million adverse currency impact (2024: €400 million)
Adjusted EBITDA margin expansion to 15.0% (2024: 14.4%) driven by efficiency actions
Net cash from operating activities positive €234 million (2024: positive €151 million)
Binding agreement signed to sell Akzo Nobel India to the JSW Group, expected to close in Q4
Highlights half-year 2025 (compared with half-year 2024)
Organic sales flat; revenue down 3% on adverse currencies
Operating income €406 million (2024: €531 million), mainly impacted by restructuring costs
Efficiency actions ahead of schedule
Adjusted EBITDA €750 million, including €31 million adverse currency impact (2024: €763 million)
Adjusted EBITDA margin: 14.3% (2024: 14.1%)
Higher pricing and cost reduction compensated for lower volumes and inflation
Net cash from operating activities positive €122 million (2024: negative €19 million)
Summary of financial results
Second quarter
January-June
∆% in € millions/%
2,784
2,626
(6%) Revenue
5,424
5,239
(24%)
(161)
(2%) Adjusted operating income*
(2%) Adjusted EBITDA*
Adjusted EBITDA margin (%)*
Average invested capital*
8,239
8,302
ROI (%)*
(21%) Operating income
Identified items*
Capital expenditures*
Net debt*
AkzoNobel’s guidance, provided at constant currencies, remains unchanged. Subject to ongoing market
uncertainties and adjusted for exchange rates as of the end of H1, the company expects to deliver
adjusted EBITDA above €1.48 billion for full-year 2025.
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.
4,280
Leverage ratio*
Net cash from operating activities
Free cash flow*
Number of employees (FTEs)
Outlook*
4,253
Net income attributable to shareholders
(134)
35,700
33,700
170.7
171.0
Weighted average number of shares (in millions)
170.7
170.9
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 and
explanation of their use, refer to the Notes to the condensed consolidated financial statements, APM paragraph.
Alternative performance measures (APM)
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, is subject to ongoing market uncertainties and assumes
constant currencies.
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 second quarter and half-year 2025
Financial highlights
Q2 2025
Revenue
Second quarter
Revenue
Organic sales flat, with an increase in price/mix offset by lower
volumes. Price/mix was up 1%, driven by positive pricing in all
businesses, except for Deco Asia. Volumes were lower, reflecting
macro-economic uncertainties, particularly in North America,
offsetting volume growth in Deco China.
Currency headwinds impacted revenue by 5%, while Other (which
mainly relates to hyperinflation accounting) was down 1%, resulting
in 6% lower revenue.
January-June
nic* in € millions
1% Decorative
Paints
2,195
2,110
—% Performance
Coatings
3,229
3,129
—% Total
5,424
5,239
1,139
1,080
1,645
1,546
2,784
2,626
* 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 Q2 2025
Half-year 2025
Price/mix
Organic
sales
Volume
Decorative
Paints
Price/ Organic
sales
Acq./
Other Revenue
Performance
Coatings
Total
Price/ Organic
sales
Acq./
in % versus
half-year 2024
Volume
Decorative
Paints
Other Revenue
Performance
Coatings
Total
Volume development per
quarter (year-on-year) in %
in % versus
Q2 2024
Q2 24
Q3 24
Q4 24
Q1 25
Q2 25
Decorative Paints
Performance Coatings
Total
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 due to the impact of macro-economic uncertainties,
particularly in North America.
Currency headwinds impacted revenue by 3%, resulting in 3% lower
revenue.
Volume
Other
Revenue
Revenue development half-year 2025
Q2 24
Q3 24
Q4 24
Q1 25
Q2 25
Decorative Paints
Performance Coatings
Total
Q2 25
Organic sales development per
quarter (year-on-year) in %
Price/mix development per
quarter (year-on-year) in %
Q2 24
Q3 24
Q4 24
Q1 25
Decorative Paints
Performance Coatings
Total
Volume
Price/mix
Organic
sales
Other
Revenue
Revenue development per
quarter (year-on-year) in %
Q2 24
Q3 24
Q4 24
Q1 25
Q2 25
Decorative Paints
Performance Coatings
Total
AkzoNobel | Report for the second quarter and half-year 2025
Financial highlights
Q2 2025
Operating income
Operating income at €214 million (2024: €270 million) was
impacted by identified items of negative €89 million (2024:
negative €39 million), mainly related to our restructuring
programs.
Financing income and expenses
Adjusted EBITDA*
Financing income and expenses amounted to negative €80
million (2024: negative €47 million), with net interest on net debt
stable at €66 million (2024: €68 million). The €33 million increase
in expenses is mainly due to hyperinflation accounting and the
interest impact related to the release of a provision for an
uncertain tax position in 2024.
Second quarter
Income tax
Adjusted EBITDA
Adjusted EBITDA at €393 million (2024: €400 million), including
€24 million adverse currency impact. Adjusted EBITDA margin
improved to 15.0% (2024: 14.4%). Structural cost measures and
disciplined execution helped offset most of the impact from
adverse currencies and lower volumes. Operating expenses
were lower year-on-year, despite wage and general inflation.
The effective tax rate was 26.4% (2024: 22.2%). The lower tax
rate in the prior year was primarily due to the release of a
provision for an uncertain tax position.
Net income
Net income attributable to shareholders was €231 million (2024:
€358 million). Earnings per share from total operations was
€1.35 (2024: €2.10).
January-June
∆% in € millions
8% Decorative Paints
(10%) Performance Coatings
Other activities
(2%) 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
Second quarter
January-June
∆% in € millions
(17%) Decorative Paints
(25%)
(18%) Performance Coatings
(10%)
Other activities
(21)% Total
(24%)
Half-year 2025
Operating income to net income
Operating income
Operating income at €406 million (2024: €531 million) was
impacted by identified items of negative €161 million (2024:
negative €52 million), mainly related to our restructuring
programs.
Adjusted EBITDA
Adjusted EBITDA at €750 million (2024: €763 million), including
€31 million adverse currency impact. Cost mitigating measures
enabled us to absorb the majority of the impact of lower volumes
and negative currency impact; operating expenses were down
compared with 2024, despite wage and general inflation.
Adjusted EBITDA margin improved to 14.3% (2024: 14.1%).
Second quarter
January-June
2025 in € millions
214 Operating income
(50) Financing income and expenses
15 Results from associates
179 Profit before tax
(44) Income tax
(110)
135 Profit from continuing operations
— Profit from discontinued operations
135 Profit for the period
(11) Non-controlling interests
124 Net income
AkzoNobel | Report for the second quarter and half-year 2025
Held for sale
On June 27, 2025, AkzoNobel announced that a binding
agreement had been signed to sell its controlling shareholding in
Akzo Nobel India Limited (ANIL) to the JSW Group. The India
Powder Coatings business and International Research Center,
both currently part of ANIL, will be retained by AkzoNobel under
full ownership. The net cash proceeds are expected to be
approximately €900 million.
The transaction involves the sale of up to 75% of shares in ANIL,
and is subject to customary closing conditions, including
regulatory approvals. The transaction is expected to be
completed in the fourth quarter of 2025.
The assets and liabilities of ANIL, excluding its Powder Coatings
business and the International Research Center, qualified as held
for sale as per June 30, 2025. The business reported as held for
sale represents approximately 3% of our revenue, of which more
than 60% sits within Decorative Paints and the remainder in
Performance Coatings.
Assets and liabilities held for sale
June 30, 2025
in € millions
Intangible assets
Property, plant and equipment
Other non-current assets
Inventories
Receivables
Other current assets
Assets held for sale
Non-current liabilities
Current liabilities
Liabilities held for sale
No impairment losses have been recorded as a result of this
reclassification. Discontinued operations accounting is not
applicable.
AkzoNobel | Report for the second quarter and half-year 2025
Decorative Paints
Highlights Q2 2025
Organic sales up 1%, revenue down 5% on adverse currencies
Adjusted EBITDA margin improved to 17.8% (2024: 15.6%)
Q2 2025
Organic sales up 1%, driven by positive pricing in Deco EMEA and
Deco LATAM. Volumes were flat, with strong growth in Deco Asia,
offset by lower volumes in Deco EMEA and Deco LATAM. Mix was
negative.
Currency headwinds impacted revenue by 5%, while Other (which
mainly relates to hyperinflation accounting) was down 1%, resulting
in 5% lower revenue.
Currency headwinds impacted revenue by 3%, while Other (which
mainly relates to hyperinflation accounting) was down 1%, resulting
in 4% lower revenue.
Revenue
Operating income at €178 million (2024: €237 million) was impacted
by identified items of negative €87 million (2024: negative €24
million), mainly related to restructuring programs.
—% Decorative
Paints EMEA
1,300
1,279
164 (11%)
10% Decorative
Paints Latin
America
(4%) Decorative
Paints Asia
1,139 1,080
1% Total
2,195
2,110
Second quarter
Excluding identified items, lower operating expenses and an
expanding gross margin more than offset the impact from lower
revenue and currency headwinds.
Adjusted EBITDA improved to €339 million (2024: €334 million),
despite €16 million adverse currency impact. Adjusted EBITDA
margin expanded to 16.1% (2024: 15.2%).
*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 Q2 2025
Operating income at €101 million (2024: €121 million) was impacted
by identified items of negative €55 million (2024: negative €20
million), mainly related to restructuring programs.
Excluding identified items, lower operating expenses and an
expanding gross margin more than offset the impact from lower
volumes and currency headwinds.
Second quarter
∆% in € millions/%
(17%) Operating income
(25%)
Identified items1
Depreciation and amortization,2
Adjusted EBITDA margin (%)1
Average invested capital1
3,813
3,790
ROI (%)1
Price/mix
Organic
sales
Other
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.
Revenue development half-year 2025
Organic sales flat, with an increase in price/mix offset by lower
volumes. Lower volumes in Deco EMEA and Deco LATAM, while
volumes in Deco Asia were flat, with Deco China returning to growth.
Price/mix up 2%, driven by positive pricing in Deco EMEA and Deco
LATAM.
Volume
Price/mix
Organic
sales
8% Adjusted EBITDA1
Half-year 2025
January-June
Volume
Adjusted EBITDA improved to €192 million (2024: €178 million),
despite €11 million adverse currency impact. Adjusted EBITDA
margin expanded to 17.8% (2024: 15.6%).
January-June
nic* in € millions
Other
Revenue
AkzoNobel | Report for the second quarter and half-year 2025
Europe, Middle East and Africa
Q2 organic sales flat, revenue down 2%. An increase in price/mix
was offset by lower volumes. Higher volumes in Western Europe
were more than offset by lower volumes in South and Eastern
Europe.
Half-year organic sales flat and revenue down 2%. An increase in
price/mix was offset by lower volumes in South and Eastern Europe.
Latin America
Q2 organic sales up 10% due to positive pricing more than offsetting
lower volumes; revenue down 11%. Pricing was positive, also when
excluding inflationary pricing in Argentina. Higher volumes in
Colombia were more than offset by lower volumes in Brazil, where
volumes were impacted by the timing of our price increases.
Half-year organic sales up 7% due to positive pricing more than
offsetting lower volumes, mainly driven by Brazil; revenue down 9%.
Q2 organic sales were down 4%, revenue down 9%. Higher
volumes in China, which returned to growth. In SESA, volumes were
flat with strong growth in Vietnam, offset by softness in South Asia
and Indonesia.
Half-year organic sales down 4%, revenue down 6%. Price/mix
continued to be down, while pricing stabilized in China. Volumes
were flat, with growth in China and Vietnam, while South Asia and
Indonesia were soft.
New “sunscreen” coating system set to redefine urban cooling
A new thermal insulation coating system which can cool down buildings and make
them more energy efficient has been launched by AkzoNobel in China. Featuring a
radiative cooling topcoat and a thermal radiation barrier mid-coat, the innovative
technology from the company’s Decorative Paints business acts like a sunscreen. It
means the surface temperature of buildings can be lowered by up to 10% during
hot summer months, compared with using conventional coatings.
AkzoNobel | Report for the second quarter and half-year 2025
Performance Coatings
Highlights Q2 2025
Organic sales flat; revenue down 6% on adverse currencies
Adjusted EBITDA margin at 13.8% (2024: 14.4%)
Q2 2025
Organic sales flat, driven by positive pricing in all businesses, offset
by lower volumes. Strong volume growth in Marine and Protective
Coatings, along with growth in most businesses in Asia, was more
than offset by the continued impact from macro-economic
uncertainties, particularly in North America.
Currency headwinds impacted revenue by 5%, while Other (which
mainly relates to hyperinflation accounting) was down 1%, resulting
in revenue being down 6%.
Excluding identified items, lower operating expenses and higher
pricing partly offset the impact of lower volumes and currency
headwinds.
Revenue
Adjusted EBITDA at €444 million (2024: €458 million), including €20
million adverse currency impact. Adjusted EBITDA margin at 14.2%
(2024: 14.2%).
Revenue development Q2 2025
Second quarter
Volume
Price/mix
Organic
sales
(1%) Powder Coatings
6% Marine and
Protective
Coatings
(3%) Automotive and
Specialty Coatings
(2%) Industrial Coatings
1,031
1,645
1,546
—% Total
3,229
3,129
* 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.
January-June
nic* in € millions
Other
Revenue
Key financial figures
Second quarter
Operating income at €150 million (2024: €182 million). Lower
operating expenses partly offset lower volumes, currency headwinds
and higher restructuring costs of €20 million (2024: €9 million).
Adjusted EBITDA at €213 million (2024: €237 million), including €16
million adverse currency impact. Adjusted EBITDA margin at 13.8%
(2024: 14.4%).
Revenue development half-year 2025
Half-year 2025
Currency headwinds impacted revenue by 3%, while Other (which
mainly relates to hyperinflation accounting) was flat, resulting in
revenue being down 3%.
Operating income at €321 million (2024: €358 million), impacted by
identified items of negative €34 million (2024: negative €12 million),
mainly due to restructuring programs.
Volume
Organic sales flat, driven by positive pricing in all businesses, offset
by lower volumes. Strong volume growth in Marine and Protective
Coatings was more than offset by the impact from macro-economic
uncertainties, particularly in North America.
Price/mix
Organic
sales
Other
Revenue
January-June
∆% in € millions / %
(18%) Operating income
(10%)
Identified items1
Depreciation and amortization2
Adjusted EBITDA margin (%)1
Average invested capital1
3,742
3,710
ROI (%)1
(10%) Adjusted EBITDA1
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 second quarter and half-year 2025
Powder Coatings
Q2 organic sales down 1%, revenue down 7%. Volumes were
slightly down due to weak demand in the architectural segment.
Automotive showed signs of recovery.
Half-year organic sales down 2%, revenue down 5%. Higher
volumes in the industrial & consumer segment were more than offset
by lower volumes in automotive and architectural segments.
Marine and Protective Coatings
Q2 organic sales up 6% and revenue flat. Double digit growth in
protective was driven by North America and Asia, with marine
stabilizing due to strong prior year comparatives.
Half-year organic sales up 9% and revenue up 6%. Double digit
growth in protective and continued strength in marine new-build.
Automotive and Specialty Coatings
Q2 organic sales down 3%, revenue down 8%. For the half-year
organic sales were down 4% and revenue was down 6%. Both in Q2
and for the half-year, lower volumes reflected continued weak
demand within automotive and vehicle refinishes, particularly in North
America. Price/mix was positive.
Industrial Coatings
Q2 organic sales down 2%, revenue down 9%. For the half-year
organic sales were down 2% and revenue was down 6%. Both in Q2
and for the half-year, volumes were down in all segments, with
packaging impacted by strong prior year comparatives.
Painting a brighter future with Signify
A shared commitment to making the built environment more sustainable and
lowering carbon emissions has resulted in AkzoNobel extending the supply of its
Interpon powder coatings to Signify, the world leader in lighting. AkzoNobel will
provide Interpon F products for Signify’s Philips LED consumer outdoor luminaires.
The coatings range, which is specifically designed for outdoor use, was selected
after extensive testing of its proven durability, as well as its ten-year warranties for
gloss retention.
AkzoNobel | Report for the second quarter and half-year 2025
Principal risks and uncertainties
In our 2024 annual report, we consider risk assessment and mitigation a continuous process, which is carried out against the background of an evolving risk landscape that includes short, medium and longer term
challenges. We consider the major risk factors as communicated in the annual report of 2024 to be still valid. The information below reflects the updated risk assessment since the publication of the 2024 annual
report. Mitigation of the risks is defined and progressing as planned.
Risks assessed to increase
Geopolitical
instability
Macro-economic
crisis
Cybersecurity
Risk description
Mitigating actions
The risk that increasing geopolitical turbulence results in declining customer and
industry confidence and a decline in key markets and significant losses to our
sales and profitability.
• Balanced geographic presence with revenue generated from all regions and continued investment focus on higher
growth markets to optimize geographic spread
• Geo-political assessment as part of investment decisions and medium-term operational planning
• Continue to drive business unit strategic initiatives underpinning the company strategy
• Diversifying our supply chain and managing redundancy, accelerated localization to offset direct tariff impacts
The risk of a prolonged macro-economic downturn, leading to local currency
devaluation, high inflation, customer destocking and a reduction in volume and
margin.
• Balanced geographic presence with revenue generated from all regions and continued investment focus on higher
growth markets to optimize geographic spread
• Focus on operational cost, complexity reduction, margin management and commercial and procurement
excellence
• Continue to drive business unit strategic initiatives underpinning the company strategy
• Strategic portfolio review: Redeploy capital to create synergetic scale in areas with clear path to leadership
The risk of significant business disruption and/or inadequate recovery following
a cybersecurity attack, leading to production interruption, unauthorized access
and disclosure or loss of business sensitive information, and/or inability to align
or comply with laws, regulations and contractual obligations concerning cyber
security which can limit our presence in some regions markets
• Continually reinforcing a cybersecurity awareness and culture within the entire organization (e.g. phishing tests,
training)
• Strengthening protection, detection and response capabilities on both IT and OT (operational technology)
domains by leveraging new technologies. In addition, accelerate the integration of the IT and OT infrastructure
from M&A entities where not fully completed
• Improving the capacity for reducing the impact from sophisticated cyber attacks and quickly recovering from them
• Improving our capacity for assessing cyber risks in critical domains and monitoring their remediation
• Increasing the level and quality of partnerships with public and private institutions for improving the level of
security of our business ecosystem.
AkzoNobel | Report for the second quarter and half-year 2025
Risks assessed to remain fairly stable
Risk description
Business
continuity risk
Integrated
Business Planning
maturity
Pricing & margin
management
Non-compliance
and litigation
Ability to execute
Mitigating actions
The risk of being unable to respond adequately to a significant business
interruption, leading to financial and reputational damage
• Continue to enhance our business continuity processes and plans, supported by taking Integrated
BusinessPlanning to a next maturity level and increasing cross-functional and business collaboration
The risk that we don’t reach the required service levels due to inadequate endto-end planning processes and supply chain infrastructure, leading to loss of
existing business and inability to win new business
• Focus on complexity reduction and improving efficiency of the product portfolio and supply chain
• Increase agility and velocity in the end-to-end process through simplification, cross-company initiatives,
digitalization and data-driven modelling
• Stronger performance management via aligned sets of lagging and leading KPIs, and mature IBP governance
The risk of lower margins resulting from lower price capture (price execution /
increased competitive pressure) and/ or higher inflation and raw material cost
vs plan
• More data-driven approach to pricing plans, based on value pricing.
• Monthly control cycle in place to monitor pricing plan execution and pricing concessions
• Strengthening controls on price overrides and full gross to net transactional pricing transparency
• Investment in sales capability and focus on commercial excellence
• Continue to closely monitor raw material prices and availability, pass through of tariff impact that cannot be offset
through localization
The risk of potential impact of current and future business conduct,
Environmental, Social and Governance (ESG) standards, product compliance,
safety and environmental regulations concerning existing and legacy operations
or assets, which may subject the company to litigation, financial losses, or
reputational harm
• Exposures over a defined threshold are reported, monitored and managed by the AkzoNobel Legal Group (Legal)
and Finance, and reported to the Audit Committee twice a year
• Developments around business conduct, ESG, product compliance, safety and environmental legislation and the
impact thereof on our current and legacy operations and assets are reviewed regularly by Health, Safety and
Environment, Sustainability, Legal and Finance
• There’s a quarterly process for review of our portfolio of legacy operations and assets, including Integrated Supply
Chain, Finance and Legal
• Updates on significant claims and litigation are regularly provided to the Board of Management and Supervisory
Board
The risk of misalignment between the business and functions and short term
versus long term, leading to inability to support and drive the business agenda
and growth plans, resulting in not delivering the set targets
• Leadership team changed, flattening the organization, increasing business representation in the Executive
Committee and consolidating the Commercial and Strategic functions
• Improving our industrial operations by focusing on reducing complexity, improving capacity utilization and
investing in the modernization of our sites
• Streamlining the execution model by addressing over-functionalization, including reintegrating R&D into the
Business Units and realigning the Coatings ISC model. This will restore end-to-end accountability and further
simplify the structure through delayering
AkzoNobel | Report for the second quarter and half-year 2025
Risks assessed to decrease
Risk description
Mitigating actions
The risk of supply shortages of key raw materials, packaging and/or spare
parts, resulting in production interruptions, additional cost and muted organic
growth
• Maintain and further improve strong industry and market intelligence analysis of suppliers and raw material
markets
• Drive supply chain network design, end-to-end, from supplier to end customer
• Assess climate change impact and develop mitigation plans for own operations, key suppliers’ locations and
logistics (see the Sustainability statements)
• Supply chain risk management tool implemented to secure early warnings across the globe
• New Raw Material Risk Management approach being rolled out to define risks across regions and BUs to further
improve mitigation planning
The risk of lacking a fit-for-purpose product portfolio, leading to a cost base
that’s too high and an inability to compete in the market
• Continuing to reduce our product portfolio complexity, accelerated reductions to facilitate IX footprint moves
• Constantly reengineering our products, accelerated localization to offset direct tariff impacts
• Enhancement of our product lifecycle and product change management
Supply shortages
Product portfolio
AkzoNobel | Report for the second quarter and half-year 2025
Condensed consolidated financial statements
Condensed consolidated statement of income
Second quarter
Condensed consolidated statement of comprehensive income
January-June
2025 in € millions
Continuing operations
2,784
2,626 Revenue
5,424
5,239
(1,643)
(1,588) Cost of sales
(3,196)
(3,153)
1,141
1,038 Gross profit
2,228
2,086
(872)
(826) SG&A costs
2 Other results
(1,697)
(1,681)
214 Operating income
(50) Financing income and expenses
15 Results from associates
179 Profit before tax
(44) Income tax
(110)
135 Profit for the period from continuing
operations
Discontinued operations
Second quarter
135 Profit for the period
January-June
2025 in € millions
135 Profit for the period
in € millions
124 Shareholders of the company
11 Non-controlling interests
135 Profit for the period
June 30, 2025
Non-current assets
(286) Exchange differences arising on translation of
foreign operations
(370)
Intangible assets
4,049
3,790
(67) Post-retirement benefits
Property, plant and equipment
2,122
1,990
20 Tax relating to components of
other comprehensive income
Right-of-use assets
(333) Other comprehensive income for the
period (net of tax)
(408)
(198) Comprehensive income for the period
(152)
Comprehensive income for the period attributable to
(194) Shareholders of the company
(151)
(4) Non-controlling interests
(152)
(198) Comprehensive income for the period
Other non-current assets
1,924
1,773
Total non-current assets
8,413
7,838
Inventories
1,721
1,638
Trade and other receivables
2,498
2,665
Current tax assets
Short-term investments
1,302
1,552
Current assets
Cash and cash equivalents
Assets held for sale
Attributable to
December 31,
Assets
Other comprehensive income
— Profit/(loss) for the period from discontinued
operations
Condensed consolidated balance sheet
Total current assets
5,836
6,332
Total assets
14,249
14,170
4,816
4,385
Equity and liabilities
Group equity
Non-current liabilities
Provisions and deferred tax liabilities
1,032
Long-term borrowings
3,671
3,656
Total non-current liabilities
4,703
4,621
Short-term borrowings
1,697
2,190
Trade and other payables
2,740
2,590
Current liabilities
Current tax liabilities
Current portion of provisions
Liabilities held for sale
Total current liabilities
4,730
5,164
Total equity and liabilities
14,249
14,170
AkzoNobel | Report for the second quarter and half-year 2025
Cash flows
Free cash flow
Consolidated statements of cash flows
Second quarter
January-June
Net cash from operating activities in Q2 was an inflow of €234 million
(2024: inflow of €151 million). The improvement compared with Q2
2024 is mainly due to changes in working capital.
2025 in € millions
1,561 Net cash and cash equivalents at
beginning of period
1,453
1,273
Net cash from investing activities in Q2 was an inflow of €118 million
(2024: outflow of €35 million). Q2 2024 contained a lower net inflow
from short-term investments.
135 Profit for the period from continuing operations
92 Amortization and depreciation
4 Impairment losses
50 Financing income and expenses
(15) Results from associates
Net cash from financing activities in Q2 was an outflow of €319
million and contained the outflow of the final dividend. In Q2 2024,
the inflow of €73 million included inflow from borrowings.
Net debt
At June 30, 2025, net debt was €4,280 million (December 31, 2024:
€3,901 million). The increase was mainly due to seasonal build up of
working capital, cash outflow related to our restructuring programs
and the payment of the final dividend. Net debt/adjusted EBITDA at
June 30, 2025, was 2.9 (December 31, 2024: 2.6).
(12) Pre-tax result on acquisitions and divestments
44 Income tax
26 Changes in working capital
(488)
(310)
June 30, 2024
December 31,
June 30, 2025
(165)
Cash and cash equivalents
(1,166)
(1,302)
(1,552)
Long-term borrowings
3,182
3,671
3,656
Short-term borrowings
2,240
1,697
2,190
Total
4,253
3,901
4,280
in € millions
Short-term investments
The free cash flow in Q2 2025 improved compared with Q2 2024,
mainly due to changes in working capital.
Consolidated statement of free cash flows
Second quarter
January-June
2025 in € millions
306 EBITDA
4 Impairment losses
(310)
(12) Pre-tax results on acquisitions and divestments
26 Changes in working capital
(488)
33 Changes in provisions
(58) Interest paid
(113)
(65) Income tax paid
(129)
(109)
— Other changes
234 Net cash generated from/(used for)
operating activities
— Changes in post-retirement benefit provisions
33 Changes in other provisions
(58) Interest paid
(113)
(65) Income tax paid
(129)
(109)
— Other changes
(72) Capital expenditures
(115)
(143)
234 Net cash generated from/(used for)
operating activities
162 Free cash flow
(134)
(72) Capital expenditures
(115)
(143)
Net debt
17 Acquisitions and divestments net of cash
acquired/divested
(1) Investments in short-term investments
158 Repayments of short-term investments
16 Other changes
118 Net cash generated from/(used for)
investing activities
(33) Changes from borrowings
(227)
(273)
(269) Dividends paid
(281)
(275)
(17) Buy-out of non-controlling interests
(319) Net cash generated from/(used for)
financing activities
(508)
33 Net cash generated from/(used for)
continuing operations
(343)
33 Net change in cash and cash equivalents
total operations
— Cash flows from discontinued operations
(347)
(41) Effect of exchange rate changes on cash and
cash equivalents
1,088
1,553 Net cash and cash equivalents at June 30
1,088
1,553
AkzoNobel | Report for the second quarter and half-year 2025
Shareholders’ equity
Shareholders’ equity amounted to €4.2 billion at June 30, 2025,
compared with €4.6 billion at year-end 2024. The main movements
in 2025 related to:
Consolidated statement of changes in equity
in € millions
Other (legal)
reserves and
undistributed
profit
Cumulative
Cash flow
translation
hedge reserve reserves
Subscribed
share capital
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
(263)
(263)
(281)
Equity-settled transactions
Balance at June 30, 2024
(631)
5,016
4,470
4,710
Balance at December 31, 2024
(579)
5,068
4,574
4,816
Profit for the period
Dividend
Other comprehensive income/(expense)
(344)
(399)
(425)
The dividend policy remains unchanged and is to pay a stable to
rising dividend.
Tax on other comprehensive income
Comprehensive income for the period
(341)
(151)
(152)
Dividend
(263)
(263)
(273)
Equity-settled transactions
Issue of common shares
Minority share buy-out
Balance at June 30, 2025
(920)
5,006
4,172
4,385
• Profit for the period of €231 million
Offset by:
• Negative currency effects of €341 million (net of taxes) driven by
strengthening of the euro versus the US dollar, Chinese yuan, and
pound sterling
• Dividend of €263 million
A final 2024 divided of €1.54 per common share (2023: €1.54) was
approved at the AGM on April 25, 2025, which resulted in a total
2024 dividend of €1.98 per share (2023: €1.98).
Outstanding share capital
The outstanding share capital was 171.0 million common shares at
the end of June 2025. The weighted average number of shares in Q2
2025 was 171.0 million shares.
AkzoNobel | Report for the second quarter and half-year 2025
Invested capital
Trade working capital
Invested capital1 at June 30, 2025, totaled €8.1 billion, down €0.2
billion from year-end 2024. This decrease was mainly caused by
negative currency translation and the transfer of invested capital in
Akzo Nobel India Limited to held for sale, partly offset by normal
seasonality, resulting in higher trade receivables.
Trade working capital1 was €1.8 billion at June 30, 2025 (June 30,
2024: €1.9 billion). Held for sale accounting decreased trade working
capital by €24 million.
Invested capital
June 30, 2024
December 31,
June 30, 2025
Trade receivables
2,517
2,144
2,299
Inventories
1,836
1,721
1,638
Trade payables
(2,425)
(2,220)
(2,153)
Trade working capital
1,928
1,645
1,784
Other working capital items
(151)
(137)
Non-current assets
8,426
8,413
7,838
Less investments in associates
(234)
(227)
(248)
Less pension assets
(1,003)
(929)
(854)
Deferred tax liabilities
(514)
(491)
(449)
Invested capital
8,452
8,274
8,089
in € millions
Trade working capital as a percentage of revenue was 17.0% in Q2
2025. On a comparable basis (excluding held for sale accounting) it
was 17.2%, which is in line with prior year.
Trade working capital
As % of revenue
Q2 24
Q3 24
Q1 25
Q2 25
Q4 24
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 second quarter and half-year 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 contain the information required
by IFRS Accounting Standards as issued by the International
Accounting Standards Board as adopted by the European Union
(EU-IFRS), IAS 34 “Interim Financial Reporting”.
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 were adopted by the Annual
General Meeting of shareholders on April 25, 2025. In accordance
with Article 393 of Book 2 of the Dutch Civil Code,
PricewaterhouseCoopers Accountants N.V. has issued an
unqualified auditor’s opinion on the 2024 financial statements.
In Performance Coatings, revenue and profitability vary, among
others, with building patterns from original equipment manufacturers.
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.
January-June 2025
in € millions
Decorative Paints
Performance Coatings
Other
1,164
1,224
2,388
North Asia
South East and South Asia
North America
Latin America
2,110
3,129
5,239
2,078
3,020
5,098
2,110
3,129
5,239
Other EMEA countries
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”.
In Other activities, we report activities which are not allocated to a
particular segment.
Revenue disaggregation
The Netherlands
Accounting policies
Other activities
Total
Total
Timing of revenue recognition
Goods transferred at a point in time
Services transferred over time
Total
AkzoNobel | Report for the second quarter and half-year 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
Second quarter
January-June
2025 in € millions
(18) Revenue
(7) Operating income
Hyperinflation: gain/loss on net monetary
(8) position
1 Other financing income/expenses
(14) Profit before tax
(1) Income tax
(15) Profit for the period
2 Non-controlling interests
(13) Net income
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 June 30, 2025, was €5,783* million (December 31,
2024: €5,256 million); the carrying amount measured at amortized
cost was €5,856* million (December 31, 2024: €5,368 million).
During the year there have been no material changes in the fair value
hierarchy.
*Including borrowings held for sale (fair value €10 million; book value €10 million).
Related parties
Hyperinflation impact on adjusted EBITDA for the half-year was €11
million negative (2024: €19 million negative); the impact for Q2 was
€6 million negative (2024: €11 million negative).
Workforce
At June 30, 2025, the number of employees was 33,700 (June 30,
2024: 35,700).
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.
The vast majority of the damages claimed for remediation costs have
not yet been incurred, rather they relate to (modelled) future
inspection and remediation costs. AkzoNobel denies liability and also
contests the quantum of alleged damages.
In 2024, the case proceeded to trial in the Federal Court of Australia,
with further trial hearing days having taken place in May 2025. 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 report, INPEX has sought
damages in the amount of AUD 4.8 billion (€2.7 billion). There are
several other scenarios in the Referee’s report for calculating
potential damages with significantly lower amounts. AkzoNobel
maintains that it is not liable for any alleged damages and thus
argues its liability is zero (0). Further, AkzoNobel argues that, even if
found liable, INPEX should not be awarded the amount of damages
it seeks. 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 view of the foregoing and due to the inherent uncertainty
surrounding the outcome of the proceedings it is not possible for
AkzoNobel to reliably estimate any potential financial impact at this
stage. AkzoNobel is insured with a maximum coverage of €500
million.
The timing of the Federal Court of Australia’s judgment remains
uncertain, although it is not anticipated before mid-2026.
Alternative performance measures
Pensions
The net balance sheet position (according to IAS 19) of the pension
plans at the end of Q2 was a surplus of €0.6 billion (year-end 2024:
surplus of €0.6 billion). The development during 2025 was mainly the
result of lower inflation rates being offset by lower plan asset returns
in key countries.
Contingent liabilities (Project Ichthys)
A number of claims against AkzoNobel are pending, many of which
are contested. This includes those where AkzoNobel is defending
claims brought by INPEX Operations Australia and JKC Australia
LNG relating to the specification and use of an AkzoNobel product
which was applied to part of the pipework at the Ichthys Onshore
Project in Darwin, Australia, a large LNG project. The claims allege
that AkzoNobel is liable for significant damages (degradation of the
coating on extensive parts of the pipework) and associated
remediation costs are sought under the Australian Consumer Law.
In presenting and discussing AkzoNobel’s operating results,
management uses certain alternative performance measures (APMs)
not defined by IFRS Accounting Standards. Management considers
these APMs to be relevant supplementary indicators of the
company’s performance. These or similar measures are widely used
in the industry to assess operational performance, developments and
positions. Management believes that reporting these measures
supports readers’ understanding of, among others, the company’s
sales performance, profitability, financial strength and funding
requirements.
AkzoNobel | Report for the second quarter and half-year 2025
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.
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.
Explanations and reconciliations of the APMs to the most directly
comparable IFRS measures can be found in this paragraph.
Operating income to adjusted EBITDA
Identified items
January – June 2024
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 margin
Adjusted EBITDA margin is an operational profit margin. Adjusted
EBITDA margin is adjusted EBITDA as a percentage of revenue. The
measure provides a clear picture of (the development of) profitability.
Decorative
Paints
Performance
Coatings
Other
activities
January – June 2025
Decorative
Paints
Performance
Coatings
Other
activities
531 Operating income
(35) Restructuring-related costs
(125)
(12) Acquisition/divestment-related
costs
— Hyperinflation
— Legal and environmental
Total in € millions
Total
(5) Other
(52) Total identified items
(161)
583 Adjusted operating income
(180) Depreciation and amortization*
(183)
763 Adjusted EBITDA
Decorative
Paints
Performance
Coatings
Other
activities
Total
* Excluding identified items.
Operating income to adjusted EBITDA
Adjusted EBITDA margin
Second quarter
Second quarter 2024
January-June
Second quarter 2025
2025 in %
Decorative
Paints
17.8 Decorative Paints
270 Operating income
13.8 Performance Coatings
(23) Restructuring-related costs
(10) Acquisition/divestment-related
costs
— Hyperinflation
— Legal and environmental
(6) Other
(39) Total identified items
Adjusted EBITDA and Adjusted operating income
309 Adjusted operating income
Adjusted EBITDA is operating income excluding depreciation,
amortization and identified items. Adjusted operating income is
operating income excluding identified items.
(91) Depreciation and amortization*
400 Adjusted EBITDA
Other activities*
15.0 Total
* Adjusted EBITDA margin for Other activities is not shown, as this is not meaningful
Performance
Coatings
Other
activities
* Excluding identified items
Total in € millions
AkzoNobel | Report for the second quarter and half-year 2025
Free cash flow
AkzoNobel reports on free cash flow as management believes it to
be a useful measure to provide additional insight into the cash
generating capability of its operations. A reconciliation of free cash
flow to the most directly comparable IFRS measure is available in the
condensed consolidated financial statements.
Capital expenditures 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.
Capital expenditures
Second quarter
68 Investments in property, plant and equipment
4 Investments in intangible assets
72 Capital expenditures
Management uses average invested capital to monitor, assess and
optimize the total amount of capital invested.
Management uses trade working capital for cash flow management
to identify opportunities to improve cash generation and to optimize
our use of cash.
Return on investment (ROI)
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.
Adjusted earnings per share from continuing operations
January-June
2025 in € millions
comparable IFRS measure is available in the condensed
consolidated financial statements.
Adjusted earnings per share
Capital expenditures
Second quarter
Organic sales exclude the impact of changes in consolidation, the
impact of changes in foreign exchange rates and the impact of
hyperinflation accounting.
The impact of changes in foreign exchange rates is calculated by retranslating the prior year local currency amounts into euros at the
current year’s foreign exchange rates.
Organic sales comparison provides a better understanding of
underlying revenue growth factors. Reconciliation to the
development of revenue is available in the financial highlights (for
consolidated revenues), as well as in the Decorative Paints and
Performance Coatings sections.
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
January-June
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.
Return on investment (ROI)
July 2023 – June 2024/July 2024 – June 2025
Decorative Paints
Performance Coatings
2025 in € millions
Other activities1
135 Profit from continuing operations
Total2
89 Identified items reported in operating income
— Identified items reported in interest
(20) Identified items reported in income tax
Organic sales
(11) Non-controlling interests
193 Adjusted net income from continuing
operations
170.7
171.0 Weighted average number of shares (in
millions)
170.7
170.9
1.13 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.
July 2023 – June 2024/July 2024 – June 2025
in € millions
Decorative Paints
3,813
3,790
Performance Coatings
3,742
3,710
8,239
8,302
Total
ROI for Other activities is not shown, as this is not meaningful.
Excluding held for sale accounting, ROI for 2025 is also 13.2%.
Adjusted gross margin
Adjusted gross profit is revenue less cost of sales, excluding
identified items. Adjusted gross margin is adjusted gross profit as a
percentage of revenue. This measure provides insight into profit
development excluding SG&A costs.
By excluding identified items, the comparability of the gross margin
development increases and financial performance can be evaluated
more effectively.
Adjusted gross margin
Second quarter
January-June
1,141
1,038 Gross profit
2,228
2,086
Average invested capital
Other activities
1,158
1,102 Adjusted gross profit
(64) Identified items
2,246
2,184
42.0 Adjusted gross margin
AkzoNobel | Report for the second quarter and half-year 2025
Leverage ratio
Consistent with other companies in the industry, 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
July 2023 – June 2024/July 2024 – June 2025
in € millions
Operating income
1,099
Depreciation and amortization*
Identified items
Adjusted EBITDA
1,490
1,465
* Excluding identified items.
Leverage ratio
July 2023 – June 2024/July 2024 – June 2025
in € millions
Net debt*
4,253
4,280
Adjusted EBITDA
1,490
1,465
Leverage ratio
* Breakdown of net debt is available in the net debt paragraph in the condensed consolidated
financial statements section.
Held for sale
On June 27, 2025, AkzoNobel announced that a binding agreement
had been signed to sell its controlling shareholding in Akzo Nobel
India Limited (ANIL) to the JSW Group. The India Powder Coatings
business and International Research Center, both currently part of
ANIL, will be retained by AkzoNobel under full ownership. The net
cash proceeds are expected to be approximately €900 million.
The transaction involves the sale of up to 75% of shares in ANIL, and
is subject to customary closing conditions, including regulatory
approvals. The transaction is expected to be completed in the fourth
quarter of 2025.
The assets and liabilities of ANIL, excluding its Powder Coatings
business and the International Research Center, qualified as held for
sale as per June 30, 2025. The business reported as held for sale
represents approximately 3% of our revenue, of which more than
60% sits within Decorative Paints and the remainder in Performance
Coatings.
Outlook*
No impairment losses have been recorded as a result of this
reclassification. Discontinued operations accounting is not
applicable.
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.
For an overview of the assets and liabilities reported as held for sale,
refer to page 5 of this report.
Board of Management’s statement on the
condensed consolidated half-year 2025
financial statements and interim management
report
We have prepared this half-year 2025 financial report of AkzoNobel,
and the undertakings included in the consolidation taken as a whole,
in accordance with International Financial Reporting Standards as
adopted by the EU (IFRS) and additional Dutch disclosure
requirements for half-yearly financial reports.
To the best of our knowledge:
1. The condensed consolidated financial statements in this half-year
2025 financial report give a true and fair view of our assets and
liabilities, financial position at June 30, 2025, and of the result of
our consolidated operations for the first half-year of 2025.
2. The interim management report in this half-year 2025 financial
report includes a fair view of the information required pursuant to
section 5:25d, subsections 8 and 9 of the Dutch Act on Financial
Supervision.
AkzoNobel’s guidance, provided at constant currencies, remains
unchanged. Subject to ongoing market uncertainties and adjusted
for exchange rates as of the end of H1, the company expects to
deliver adjusted EBITDA above €1.48 billion for full-year 2025.
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, July 21, 2025
The Board of Management
Greg Poux-Guillaume
Maarten de Vries
AkzoNobel | Report for the second quarter and half-year 2025
Quarterly statistics
1,056
1,139
1,089
1,017
1,584
1,645
1,579
1,602
2,640
2,784
2,668
2,619
Full-year in € millions
Year-to-date
4,301 Decorative Paints
1,030
1,080
2,110
6,410 Performance Coatings
1,583
1,546
3,129
10,711 Total
2,613
2,626
5,239
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
(186)
Depreciation and amortization (excluding Identified items)
(150) Decorative Paints
(178) Performance Coatings
(37) Other activities
(365) Total
(183)
* 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 second quarter and half-year 2025
Quarterly statistics
Full-year in € millions
Year-to-date
405 Decorative Paints
679 Performance Coatings
(167) Other activities
917 Total
Operating income
Identified items included in operating income
(80) Decorative Paints
(56) Performance Coatings
(60) Other activities
(100)
(196) Total
(161)
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 second quarter and half-year 2025
Quarterly statistics
Full-year
Year-to-date
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
171.0
170.9
170.6
170.8
170.8
170.8
170.8 Number of shares at end of quarter1
170.9
171.0
171.0
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 second quarter and half-year 2025
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.
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 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.
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 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.
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 a
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 second quarter and half-year 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
Report for the third quarter 2025
October 22, 2025