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Akzo Nobel N.V.
Quarterly Report • Oct 22, 2025
3806_rns_2025-10-22_e0b1d72d-fc92-4ddb-80b3-c6c91cd3e689.pdf
Quarterly Report
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AkzoNobel
PAINT THE FUTURE
Our results at a glance
Highlights Q3 2025 (compared with Q3 2024)
- Organic sales up 1% driven by price/mix; revenue down 5% on adverse currencies
- Operating income €29 million negative (2024: €259 million positive) due to a €275 million charge related to recording a provision for the long-running Australian court case
- Adjusted EBITDA at €385 million, including €26 million adverse currency impact (2024: €394 million)
- Adjusted EBITDA margin increased to 15.1% (2024: 14.8%) driven by efficiency actions
- Net cash from operating activities positive €331 million (2024: positive €294 million)
- India divestment on track to close in December; all regulatory approvals granted
Outlook*
Subject to ongoing market uncertainties and adjusted for exchange rates as of the end of the third quarter, the company expects to deliver adjusted EBITDA around €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.
Following the expected closing of the India disposal, the company expects leverage to be slightly above 2 times net debt/adjusted EBITDA by the end of 2025. In the mid-term, AkzoNobel aims to maintain leverage around 2 times, while remaining committed to a strong investment grade credit rating.
Alternative performance measures (APMs)
AkzoNobel uses APM adjustments to IFRS measures to provide supplementary information on the reporting of the underlying developments of the business. A reconciliation of the alternative performance measures to the most directly comparable IFRS measures can be found in the Notes to the condensed consolidated financial statements, paragraph "Alternative performance measures."
| Summary of financial results | |||||
|---|---|---|---|---|---|
| Third quarter | January-September | ||||
| 2024 | 2025 | ∆% in € millions/% | 2024 | 2025 | ∆% |
| 2,668 | 2,547 | (5%) Revenue | 8,092 | 7,786 | (4%) |
| 259 | (29) (111%) Operating income | 790 | 377 | (52%) | |
| (44) | (326) | Identified items* | (96) | (487) | |
| 303 | 297 | (2%) Adjusted operating income* | 886 | 864 | (2%) |
| 394 | 385 | (2%) Adjusted EBITDA* | 1,157 | 1,135 | (2%) |
| 14.8 | 15.1 | Adjusted EBITDA margin (%)* | 14.3 | 14.6 | |
| Average invested capital* | 8,243 | 8,187 | (1%) | ||
| ROI (%)* | 13.4 | 13.3 | |||
| 77 | 66 | Capital expenditures* | 192 | 209 | |
| Net debt* | 4,069 | 4,028 | |||
| Leverage ratio* | 2.8 | 2.8 | |||
| 294 | 331 | Net cash from operating activities | 275 | 453 | |
| 217 | 265 | Free cash flow* | 83 | 244 | |
| Number of employees (FTEs) | 35,400 | 33,200 | |||
| 163 | (194) | Net income attributable to shareholders | 521 | 37 | |
| 170.8 171.0 | Weighted average number of shares (in millions) | 170.7 | 171.0 | ||
| 0.95 (1.13) | Earnings per share from total operations (in €) | 3.05 | 0.22 | ||
| 1.14 | 1.01 | Adjusted earnings per share from continuing operations (in €)* | 3.33 | 3.07 | |
* 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.
* Outlook represents current company expectations based on organic volumes, is subject to ongoing market uncertainties and assumes constant currencies.
Financial highlights
Q3 2025
Revenue
Organic sales up 1%, with an increase in price/mix partly offset by lower volumes. Volumes in Decorative Paints were higher, driven by growth in Deco LATAM and Deco Asia. In Performance Coatings, volumes were impacted by macro-economic uncertainties in North America and, to a lesser extent, Europe. Price/mix was up 1%, driven by positive pricing in all businesses, except for Deco Asia.
The translation effect due to the strong euro impacted revenue by 5%, resulting in 5% lower revenue.
Year-to-date 2025
Revenue
Organic sales flat, with an increase in price/mix offset by lower volumes. Price/mix was up 2%, mainly due to positive pricing. Volumes were 2% lower due to the impact of macro-economic uncertainties, particularly in North America.
The translation effect due to the strong euro impacted revenue by 4%, resulting in 4% lower revenue.
| Revenue | ||||||||
|---|---|---|---|---|---|---|---|---|
| Third quarter | January-September | |||||||
| 2024 | 2025 | ∆% | ∆% Orga |
nic* in € millions | 2024 | 2025 | ∆% | ∆% Orga nic* |
| 1,089 1,055 | (3%) | 2% Decorative Paints |
3,284 | 3,165 | (4%) | 1% | ||
| 1,579 1,492 | (6%) —% Performance Coatings |
4,808 | 4,621 | (4%) —% | ||||
| 2,668 2,547 | (5%) | 1% Total | 8,092 | 7,786 | (4%) —% |
* 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 Q3 2025
*Difference due to rounding
Revenue development year-to-date 2025
| in % versus Q3 2024 |
Volume | Price/ mix |
Organic sales* |
FX Other Revenue | ||
|---|---|---|---|---|---|---|
| Decorative Paints | 1 | 1 | 2 | (4) | (1) | (3) |
| Performance Coatings | (2) | 1 | — | (5) | — | (6) |
| Total | (1) | 1 | 1 | (5) | — | (5) |
*Rounding was applied
| in % versus year-to-date 2024 |
Volume | Price/ mix |
Organic sales |
FX Other Revenue | ||
|---|---|---|---|---|---|---|
| Decorative Paints | (1) | 2 | 1 | (4) | (1) | (4) |
| Performance Coatings | (2) | 2 | — | (4) | — | (4) |
| Total | (2) | 2 | — | (4) | — | (4) |
| Volume development per quarter (year-on-year) in % |
Q3 24 | Q4 24 | Q1 25 | Q2 25 | Q3 25 |
|---|---|---|---|---|---|
| Decorative Paints | — | (2) | (3) | — | 1 |
| Performance Coatings | 2 | 1 | (1) | (2) | (2) |
| Total | 1 | — | (2) | (1) | (1) |
| Price/mix development per quarter (year-on-year) in % |
Q3 24 | Q4 24 | Q1 25 | Q2 25 | Q3 25 |
|---|---|---|---|---|---|
| Decorative Paints | 1 | 2 | 2 | 1 | 1 |
| Performance Coatings | — | 1 | 2 | 2 | 1 |
| Total | — | 1 | 2 | 1 | 1 |
| Organic sales development per quarter (year-on-year) in % |
Q3 24 | Q4 24 | Q1 25 | Q2 25 | Q3 25 |
|---|---|---|---|---|---|
| Decorative Paints | 1 | — | (1) | 1 | 2 |
| Performance Coatings | 2 | 2 | 1 | — | — |
| Total | 1 | 1 | — | — | 1 |
| Revenue development per quarter (year-on-year) in % |
Q3 24 | Q4 24 | Q1 25 | Q2 25 | Q3 25 |
|---|---|---|---|---|---|
| Decorative Paints | (3) | 3 | (2) | (5) | (3) |
| Performance Coatings | (3) | 4 | — | (6) | (6) |
| Total | (3) | 4 | (1) | (6) | (5) |
Financial highlights
Q3 2025
Operating income
Operating income at €29 million negative (2024: €259 million positive). Operating income included an (identified) charge of €275 million, related to the recording of a provision for the longrunning Australian court case (Project Ichthys). Further details on this can be found on the next page and in the Notes to the condensed consolidated financial statements.
Adjusted EBITDA
Adjusted EBITDA at €385 million (2024: €394 million), including €26 million adverse currency impact. Structural cost measures and disciplined execution helped offset most of the impact from lower volumes. Operating expenses were lower year-on-year, despite wage and general inflation.
Adjusted EBITDA margin improved to 15.1% (2024: 14.8%).
Year-to-date 2025
Operating income
Operating income at €377 million (2024: €790 million) was impacted by identified items of negative €487 million (2024: negative €96 million), mainly related to our restructuring programs and a charge of €275 million related to the recording of a provision for the long-running Australian court case.
Adjusted EBITDA
Adjusted EBITDA at €1,135 million (2024: €1,157 million), including €57 million adverse currency impact. Cost mitigating measures enabled us to absorb the majority of the impact from lower volumes and negative currencies; operating expenses were lower year-on-year, despite wage and general inflation. Adjusted EBITDA margin improved to 14.6% (2024: 14.3%).
Financing income and expenses
Financing income and expenses amounted to negative €156 million (2024: negative €66 million), with net interest on net debt stable at €99 million (2024: €100 million). The €90 million increase includes an (identified) charge of €25 million related to recording of the interest portion of the provision for the longrunning Australian court case. The remainder of the increase is mainly due to hyperinflation accounting and the interest impact related to the release of a provision for an uncertain tax position in 2024.
Income tax
The effective tax rate was 73.8% (2024: 25.2%). The tax rate was impacted by non-deductible costs related to recording a provision for the long-running Australian court case, and the tax impact of the internal transfer of the Powder Coatings business and the International Research Center in India. Excluding these two effects, the tax rate would have been 29.0%.
Net income
Net income attributable to shareholders was €37 million (2024: €521 million). Net income was impacted €487 million of identified items, which includes an (identified) charge of €300 million, related to the recording of a provision for the long-running Australian court case. Earnings per share from total operations was €0.22 (2024: €3.05). Adjusted earnings per share from continuing operations was €3.07 (2024:€3.33).
| Adjusted EBITDA* | |||||
|---|---|---|---|---|---|
| Third quarter | January-September | ||||
| 2024 | 2025 | ∆% in € millions | 2024 | 2025 | ∆% |
| 188 | 184 | (2%) Decorative Paints | 522 | 523 | —% |
| 225 | 209 | (7%) Performance Coatings | 683 | 653 | (4%) |
| (19) | (8) | Other activities | (48) | (41) | |
| 394 | 385 | (2%) Total | 1,157 | 1,135 | (2%) |
* Alternative performance measure: For more details on these measures, including reconciliation to the most directly comparable IFRS measures and explanation of their use, refer to the Notes to the condensed consolidated financial statements, APM paragraph.
| Operating income | ||||
|---|---|---|---|---|
| Third quarter | January-September | |||
| 2024 | 2025 in € millions | 2024 | 2025 | ∆% |
| 127 | 149 Decorative Paints | 364 | 327 | (10%) |
| 171 | (138) Performance Coatings | 529 | 183 | (65%) |
| (39) | (40) Other activities | (103) | (133) | |
| 259 | (29) Total | 790 | 377 | (52%) |
| Operating income to net income | |||
|---|---|---|---|
| Third quarter | January September |
||
| 2024 | 2025 in € millions | 2024 | 2025 |
| 259 | (29) Operating income | 790 | 377 |
| (19) | (76) Financing income and expenses | (66) | (156) |
| 7 | 9 Results from associates | 19 | 31 |
| 247 | (96) Profit before tax | 743 | 252 |
| (77) | (94) Income tax | (187) | (186) |
| 170 | (190) Profit from continuing operations | 556 | 66 |
| — | (1) Profit from discontinued operations | — | (1) |
| 170 | (191) Profit for the period | 556 | 65 |
| (7) | (3) Non-controlling interests | (35) | (28) |
| 163 | (194) Net income | 521 | 37 |
Long-running Australian court case (Project Ichthys)
AkzoNobel is defending claims brought by INPEX Operations Australia in 2021 and JKC Australia LNG in 2017, relating to the specification and use of an AkzoNobel product which was applied to part of the pipework for the Ichthys Onshore Project in Darwin, Australia, a large LNG project, between 2013 and 2015. The claims allege that AkzoNobel is liable for significant damages (relating to degradation of the coating on extensive parts of the pipework) and associated remediation costs are sought under the Australian Consumer Law.
AkzoNobel maintains that it is not liable for any alleged damages and thus argues its liability towards both INPEX and JKC should be zero (0). Further, AkzoNobel argues that, even if found liable, the claimants should not be awarded the amount of damages they seek. The Federal Court of Australia has yet to decide on liability and, if AkzoNobel is found liable, on the appropriate amount of damages that AkzoNobel is liable for (including whether any liability should be shared with other parties involved).
In Q3 2025, AkzoNobel has recognized a provision of €300 million in respect of Project Ichthys. This provision relates to the elements in the claims for which the IAS 37 recognition criteria are met at 30 September 2025. Other elements not meeting the requirements are presented as contingent liabilities and remain unprovided for. AkzoNobel is insured with a maximum coverage of €500 million for cash outflows, whether presented as a provision or as a contingent liability.
Damages of €275 million have been recorded through operating income, whilst €25 million of interest has been recorded in financing income and expenses. All amounts have been booked as Identified items; no tax benefit was recorded.
For further details on this matter, refer to the Note Contingent liabilities in the condensed consolidated financial statements.
Intended divestment Akzo Nobel India Ltd.
The intended divestment of Akzo Nobel India Ltd. is on track. All regulatory approvals have been granted. The transaction is expected to be completed in December 2025.
During the third quarter, the Powder Coatings business and International Research Center in India were transferred from Akzo Nobel India Ltd. to a wholly owned subsidiary. This impacted the effective tax rate and, since Akzo Nobel India Ltd. contains minority shareholders, non-controlling interest in the company.
In advance of the sale of shares to JSW, AkzoNobel sold 5% of the share capital of Akzo Nobel India Ltd. through a market block trade. The result of this sale will be included in the deal result upon divestment.
Decorative Paints
Highlights Q3 2025
- Organic sales up 2%, revenue down 3% on adverse currencies
- Adjusted EBITDA margin increased to 17.4% (2024: 17.3%)
Q3 2025
Organic sales up 2%, with higher volumes and positive pricing. Volume growth was driven by Deco Asia and Deco LATAM. Positive pricing was driven by Deco EMEA and Deco LATAM; mix was negative.
Currency translation impacted revenue by 4%, while Other (which mainly relates to hyperinflation accounting) was down 1%, resulting in 3% lower revenue.
Operating income increased to €149 million (2024: €127 million), driven by lower identified items, which were down €22 million compared with 2024.
Adjusted EBITDA at €184 million (2024: €188 million), including €12 million adverse currency impact. Adjusted EBITDA margin increased to 17.4% (2024: 17.3%).
Year-to-date 2025
Organic sales up 1%, with an increase in price/mix partly offset by lower volumes. Volumes were lower in Deco EMEA and Deco LATAM, while volumes in Deco Asia were up, driven by China outperforming a weak market.
Price/mix up 2%, driven by positive pricing in Deco EMEA and Deco LATAM.
Currency translation impacted revenue by 4%, while Other (which mainly relates to hyperinflation accounting) was down 1%, resulting in 4% lower revenue.
Operating income at €327 million (2024: €364 million) was impacted by identified items of negative €88 million (2024: negative €47 million), mainly related to restructuring programs and lower operating expenses.
Adjusted EBITDA improved to €523 million (2024: €522 million), despite €27 million adverse currency impact. Adjusted EBITDA margin expanded to 16.5% (2024: 15.9%).
Revenue development Q3 2025
Revenue development year-to-date 2025
| Revenue | ||||||||
|---|---|---|---|---|---|---|---|---|
| Third quarter | January-September | |||||||
| 2024 2025 | ∆% | ∆% Orga |
nic* in € millions | 2024 | 2025 | ∆% | ∆% Orga nic* |
|
| 635 630 (1%) —% Decorative Paints EMEA |
1,935 | 1,909 | (1%) —% | |||||
| 207 198 (4%) 10% Decorative Paints Latin America |
574 | 533 | (7%) | 8% | ||||
| 247 227 (8%) —% Decorative Paints Asia |
775 | 723 | (7%) (3%) | |||||
| 1,089 1,055 (3%) | 2% Total | 3,284 | 3,165 | (4%) | 1% |
*Alternative performance measure: For more details on these measures, including explanation of their use, refer to the Notes to the condensed consolidated financial statements, APM paragraph.
| Third quarter | January-September | ||||
|---|---|---|---|---|---|
| 2024 | 2025 | ∆% in € millions/% | 2024 | 2025 | ∆% |
| 127 | 149 17% Operating income | 364 | 327 | (10%) | |
| (23) | (1) | Identified items1 | (47) | (88) | |
| (38) | (34) | Depreciation and amortization,2 | (111) | (108) | |
| 188 | 184 | (2%) Adjusted EBITDA1 | 522 | 523 | —% |
| 17.3 | 17.4 | Adjusted EBITDA margin (%)1 | 15.9 | 16.5 | |
| Average invested capital1 | 3,849 | 3,661 | (5%) | ||
| ROI (%)1 | 12.8 | 13.4 |
1 Alternative performance measure: For more details on these measures, including reconciliation to the most directly comparable IFRS measures and explanation of their use, refer to the Notes to the condensed consolidated financial statements, APM paragraph.
2 Excluding identified items.
Europe, Middle East and Africa
Q3 organic sales flat with positive pricing, revenue down 1%. Volume growth in Africa and South Eastern Europe, with lower volumes in Western Europe. Mix was negative.
Latin America
Q3 organic sales were up 10%, revenue down 4% on currency translation. Pricing was positive, also when excluding inflationary pricing in Argentina. Higher volumes were driven by Brazil.
Asia
Q3 organic sales were flat, revenue down 8% on currency translation. Higher volumes in China, which continued to grow, offset by negative mix. In SESA, higher volumes driven by strong growth in Vietnam were offset by pricing pressure and a weaker Indonesian market.
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Performance Coatings
Highlights Q3 2025
- Organic sales flat; revenue down 6% on adverse currencies
- Adjusted EBITDA margin at 14.0% (2024: 14.2%)
Q3 2025
Organic sales flat, with an increase in price/mix and volume growth in Asia across all businesses offset by softer volumes in Europe and North America. Marine and Protective Coatings continued to grow, especially protective in North America. Pricing continued to be positive across all businesses.
Currency translation impacted revenue by 5%, resulting in revenue being down 6%.
Operating income at €138 million negative (2024: €171 million positive). Operating income included an (identified) charge of €275 million, related to the recording of a provision for the long-running Australian court case (Project Ichthys).
Adjusted EBITDA at €209 million (2024: €225 million), including €17 million averse currency impact. Lower operating expenses and an increase in pricing were more than offset by the impact from lower volumes and the impact from raw material prices.
Adjusted EBITDA margin at 14.0% (2024: 14.2%).
Year-to-date 2025
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.
Currency translation impacted revenue by 4%, resulting in revenue being down 4%.
Operating income at €183 million (2024: €529 million), impacted by identified items of negative €337 million (2024: negative €22 million), mainly due to recording a provision for the long-running Australian court case (€275 million) and restructuring programs (€58 milion).
Excluding identified items, lower operating expenses and higher pricing partly offset the impact from lower volumes and raw material prices.
Adjusted EBITDA at €653 million (2024: €683 million), including €37 million adverse currency impact. Adjusted EBITDA margin at 14.1% (2024: 14.2%).
Revenue development Q3 2025
Differences due to rounding
Revenue development year-to-date 2025
| Revenue | ||||||||
|---|---|---|---|---|---|---|---|---|
| Third quarter | January-September | |||||||
| 2024 | 2025 | ∆% | ∆% Orga |
nic1,2 in € millions | 2024 | 2025 | ∆% | ∆% Orga nic1 |
| 336 | 315 (6%) (2%) Powder Coatings | 1,027 | 968 | (6%) | (2%) | |||
| 390 | 381 (2%) | 4% Marine and Protective Coatings |
1,161 | 1,197 | 3% | 7% | ||
| 346 | 334 (3%) | 2% Automotive and Specialty Coatings |
1,082 | 1,023 | (5%) | (2%) | ||
| 507 | 462 (9%) (3%) Industrial Coatings 1,538 | 1,433 | (7%) | (2%) | ||||
| 1,579 1,492 (6%) —% Total | 4,808 | 4,621 | (4%) —% |
1 Alternative performance measure: For more details on these measures, including explanation of their use, refer to the Notes to the condensed consolidated financial statements, APM paragraph.
2 Rounding was applied
| Key financial figures | ||||||
|---|---|---|---|---|---|---|
| Third quarter | January-September | |||||
| 2024 | 2025 | ∆% in € millions / % | 2024 | 2025 | ∆% | |
| 171 | (138) (181%) Operating income | 529 | 183 | (65%) | ||
| (10) | (303) | Identified items1 | (22) | (337) | ||
| (44) | (44) | Depreciation and amortization2 | (132) | (133) | ||
| 225 | 209 | (7%) Adjusted EBITDA1 | 683 | 653 | (4%) | |
| 14.2 | 14.0 | Adjusted EBITDA margin (%)1 | 14.2 | 14.1 | ||
| Average invested capital1 | 3,765 | 3,628 | (4%) | |||
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.
ROI (%)1 19.0 19.4
2 Excluding identified items.
Powder Coatings
Q3 organic sales down 2%, revenue down 6%. Higher volumes in automotive and functional, driven by growth in Asia was more than offset by lower volumes in industrial & consumer, specifically in the Americas.
Marine and Protective Coatings
Q3 organic sales up 4% and revenue down 2%. Higher volumes in protective were driven by North America and Asia. Volume growth in marine, maintenance and repair.
Automotive and Specialty Coatings
Q3 organic sales up 2%, revenue down 3%. Organic sales growth driven by an increase in price/mix. Volumes overall were down, with vehicle refinishes stabilizing sequentially in North America and weakening in Europe. Volumes were higher in aerospace.
Industrial Coatings
Q3 organic sales down 3%, revenue down 9%, driven by lower volumes. Volume growth in coil, particularly in Asia, was more than offset by decreased volumes in packaging and wood.
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Condensed consolidated financial statements
| Third quarter | January-September | |||
|---|---|---|---|---|
| 2024 | 2025 in € millions | 2024 | 2025 | |
| Continuing operations | ||||
| 2,668 2,547 Revenue | 8,092 | 7,786 | ||
| (1,585) (1,520) Cost of sales | (4,781) | (4,673) | ||
| 1,083 1,027 Gross profit | 3,311 | 3,113 | ||
| (819) | (783) SG&A costs | (2,516) | (2,464) | |
| (5) | (273) Other results | (5) | (272) | |
| 259 | (29) Operating income | 790 | 377 | |
| (19) | (76) Financing income and expenses | (66) | (156) | |
| 7 | 9 Results from associates | 19 | 31 | |
| 247 | (96) Profit before tax | 743 | 252 | |
| (77) | (94) Income tax | (187) | (186) | |
| 170 | (190) Profit for the period from continuing operations |
556 | 66 | |
| Discontinued operations | ||||
| — | (1) Profit/(loss) for the period from discontinued operations |
— | (1) | |
| 170 | (191) Profit for the period | 556 | 65 | |
| Attributable to | ||||
| 163 | (194) Shareholders of the company | 521 | 37 | |
| 7 | 3 Non-controlling interests | 35 | 28 | |
| 170 | (191) Profit for the period | 556 | 65 |
| Condensed consolidated statement of comprehensive income | |||
|---|---|---|---|
| Third quarter | January-September | ||
| 2024 | 2025 in € millions | 2024 | 2025 |
| 170 | (191) Profit for the period | 556 | 65 |
| Other comprehensive income | |||
| (61) | (48) Exchange differences arising on translation of foreign operations |
24 | (418) |
| — | 12 Cash flow hedges | — | 12 |
| 7 | 6 Post-retirement benefits | (46) | (49) |
| (6) | (2) Tax relating to components of other comprehensive income |
9 | 15 |
| (60) | (32) Other comprehensive income for the period (net of tax) |
(13) | (440) |
| 110 | (223) Comprehensive income for the period | 543 | (375) |
| Comprehensive income for the period attributable to | |||
| 104 | (225) Shareholders of the company | 503 | (376) |
| 6 | 2 Non-controlling interests | 40 | 1 |
| 110 | (223) Comprehensive income for the period | 543 | (375) |
| Condensed consolidated balance sheet | ||
|---|---|---|
| December 31, | September 30, | |
| in € millions | 2024 | 2025 |
| Assets | ||
| Non-current assets | ||
| Intangible assets | 4,049 | 3,785 |
| Property, plant and equipment | 2,122 | 1,989 |
| Right-of-use assets | 318 | 284 |
| Other non-current assets | 1,924 | 1,797 |
| Total non-current assets | 8,413 | 7,855 |
| Current assets | ||
| Inventories | 1,721 | 1,570 |
| Trade and other receivables | 2,498 | 2,657 |
| Current tax assets | 150 | 179 |
| Short-term investments | 165 | 2 |
| Cash and cash equivalents | 1,302 | 1,322 |
| Assets held for sale | — | 312 |
| Total current assets | 5,836 | 6,042 |
| Total assets | 14,249 | 13,897 |
| Equity and liabilities | ||
| Group equity | 4,816 | 4,145 |
| Non-current liabilities | ||
| Provisions and deferred tax liabilities | 1,032 | 1,257 |
| Long-term borrowings | 3,671 | 3,657 |
| Total non-current liabilities | 4,703 | 4,914 |
| Current liabilities | ||
| Short-term borrowings | 1,697 | 1,695 |
| Trade and other payables | 2,740 | 2,695 |
| Current tax liabilities | 120 | 158 |
| Current portion of provisions | 173 | 174 |
| Liabilities held for sale | — | 116 |
| Total current liabilities | 4,730 | 4,838 |
| Total equity and liabilities | 14,249 | 13,897 |
Cash flows
Net cash from operating activities in Q3 was an inflow of €331 million (2024: inflow of €294 million). The increase compared with Q3 2024 is mainly due to improvements in changes in working capital.
Net cash from investing activities in Q3 was an outflow of €27 million (2024: outflow of €282 million). Q3 2024 contained a net outflow from short-term investments of €219 million, while Q3 2025 contained a net inflow of €13 million.
Net cash from financing activities in Q3 was an outflow of €530 million and was impacted by €503 million outflow from borrowings, due to repayment of commercial paper. In Q3 2024, the inflow of €824 million included €833 million inflow from borrowings.
Net debt
At September 30, 2025, net debt was €4,028 million (December 31, 2024: €3,901 million). The increase was mainly due to capital expenditures (€209 million) and dividends paid (€302 million), partly offset by net cash generated from operating activities for the period (€453 million). Net cash generated from operating activities contained outflows related to our restructuring programs. Net debt/ adjusted EBITDA at September 30, 2025, was 2.8 (December 31, 2024: 2.6).
| in € millions | September 30, 2024 |
December 31, 2024 |
September 30, 2025 |
|---|---|---|---|
| Short-term investments | (222) | (165) | (2) |
| Cash and cash equivalents | (1,958) | (1,302) | (1,322) |
| Long-term borrowings | 3,672 | 3,671 | 3,657 |
| Short-term borrowings | 2,577 | 1,697 | 1,695 |
| Total | 4,069 | 3,901 | 4,028 |
| Consolidated statements of cash flows | |||
|---|---|---|---|
| Third quarter | January September |
||
| 2024 | 2025 in € millions | 2024 | 2025 |
| 1,088 1,553 Net cash and cash equivalents at beginning of period |
1,453 | 1,273 | |
| 170 | (190) Profit for the period from continuing operations | 556 | 66 |
| 96 | 94 Amortization and depreciation | 277 | 280 |
| — | 1 Impairment losses | — | 8 |
| 19 | 76 Financing income and expenses | 66 | 156 |
| (7) | (9) Results from associates | (19) | (31) |
| 2 | (5) Pre-tax results on acquisitions and divestments | 2 | (16) |
| 77 | 94 Income tax | 187 | 186 |
| 64 | 138 Changes in working capital | (424) | (172) |
| (3) | (7) Changes in post-retirement benefit provisions | (7) | (8) |
| (6) | 263 Changes in other provisions | (17) | 306 |
| (32) | (48) Interest paid | (145) | (147) |
| (106) | (84) Income tax paid | (235) | (193) |
| 20 | 8 Other changes | 34 | 18 |
| 294 | 331 Net cash generated from/(used for) operating activities |
275 | 453 |
| (77) | (66) Capital expenditures | (192) | (209) |
| 2 | — Acquisitions and divestments net of cash acquired/divested |
13 | 17 |
| (219) | — Investments in short-term investments | (219) | (9) |
| — | 13 Repayments of short-term investments | 263 | 172 |
| 12 | 26 Other changes | 37 | 57 |
| (282) | (27) Net cash generated from/(used for) investing activities |
(98) | 28 |
| 833 | (503) Changes from borrowings | 606 | (59) |
| (5) | (27) Dividends paid | (286) | (302) |
| (4) | — Non-controlling interests transactions | (4) | (17) |
| 824 | (530) Net cash generated from/(used for) financing activities |
316 | (378) |
| 836 | (226) Net cash generated from/(used for) continuing operations |
493 | 103 |
| — | — Cash flows from discontinued operations | (4) | (1) |
| 836 | (226) Net change in cash and cash equivalents total operations |
489 | 102 |
| (21) | (3) Effect of exchange rate changes on cash and cash equivalents |
(39) | (51) |
| 1,903 1,324 Net cash and cash equivalents at September 30 |
1,903 | 1,324 | |
Free cash flow
The free cash flow in Q3 2025 improved compared with Q3 2024, mainly due to improvements in changes in working capital.
| Consolidated statement of free cash flows | |||
|---|---|---|---|
| Third quarter | January September |
||
| 2024 | 2025 in € millions | 2024 | 2025 |
| 355 | 65 EBITDA | 1,067 | 657 |
| — | 1 Impairment losses | — | 8 |
| 2 | (5) Pre-tax results on acquisitions and divestments | 2 | (16) |
| 64 | 138 Changes in working capital | (424) | (172) |
| — | (4) Pension top-up payments | — | (4) |
| (9) | 260 Changes in provisions | (24) | 302 |
| (32) | (48) Interest paid | (145) | (147) |
| (106) | (84) Income tax paid | (235) | (193) |
| 20 | 8 Other changes | 34 | 18 |
| 294 | 331 Net cash generated from/(used for) operating activities |
275 | 453 |
| (77) | (66) Capital expenditures | (192) | (209) |
| 217 | 265 Free cash flow | 83 | 244 |
Shareholders' equity and non-controlling interests
Development of shareholders' equity
Shareholders' equity amounted to €3.9 billion at September 30, 2025, compared with €4.6 billion at year-end 2024. The main movements in 2025 related to:
• Profit for the period of €37 million
Offset by:
- Negative currency effects of €388 million (net of taxes) driven by strengthening of the euro versus other currencies, in particular the US dollar, Chinese yuan, and pound sterling
- Dividend of €263 million
Dividend
The dividend policy remains unchanged and is to pay a stable to rising dividend. An interim dividend of €0.44 per share will be paid. In 2024, an interim dividend of €0.44 per share was also paid.
A final 2024 dividend of €1.54 per common share (2023: €1.54) was approved at the AGM on April 25, 2025, which resulted in a total 2024 dividend of €1.98 per share (2023: €1.98).
Acquisitions and divestments
The acquisition and divestments, in both shareholders' equity and non-controlling interests, next to regular minority share buyouts, contain the impact of internal transfers (Powder Coatings and the International Research Center in India, from Akzo Nobel India Ltd. to a wholly owned subsidiary) and the sale of 5% of the share capital in Akzo Nobel India Ltd.
The internal transfers increased the non-controlling interest by €20 million and decreased the shareholders' equity by €20 million, due to the excess paid over the carrying value of the assets and liabilities acquired.
The sale of 5% of the share capital of Akzo Nobel India Ltd. through a market block trade increased non-controlling interest by €9 million. This transaction was treated as a transaction linked to the divestment, so the excess consideration received over the book value will be treated as divestment result upon completion of the
divestment. Refer to the Notes to the condensed consolidated financial statements for more details.
Outstanding share capital
The outstanding share capital was 171.1 million common shares at the end of September 2025. The weighted average number of shares in Q3 2025 was 171.0 million shares.
Consolidated statement of changes in equity
| in € millions | Subscribed share capital |
Cash flow hedge reserve |
Cumulative translation reserves |
Other (legal) reserves and undistributed profit |
Share holders' equity |
Non controlling interests |
Group equity |
|---|---|---|---|---|---|---|---|
| Balance at December 31, 2023 | 85 | — | (711) | 4,948 | 4,322 | 224 | 4,546 |
| Profit for the period | — | — | — | 521 | 521 | 35 | 556 |
| Other comprehensive income/(expense) | — | — | 19 | (46) | (27) | 5 | (22) |
| Tax on other comprehensive income | — | — | (1) | 10 | 9 | — | 9 |
| Comprehensive income for the period | — | — | 18 | 485 | 503 | 40 | 543 |
| Dividend | — | — | — | (263) | (263) | (31) | (294) |
| Equity-settled transactions | — | — | — | 18 | 18 | — | 18 |
| Acquisitions and divestments | — | — | — | (3) | (3) | (1) | (4) |
| September 30, 2024 | 85 | — | (693) | 5,185 | 4,577 | 232 | 4,809 |
| Balance at December 31, 2024 | 85 | — | (579) | 5,068 | 4,574 | 242 | 4,816 |
| Profit for the period | — | — | — | 37 | 37 | 28 | 65 |
| Other comprehensive income/(expense) | — | 12 | (391) | (49) | (428) | (27) | (455) |
| Tax on other comprehensive income | — | — | 3 | 12 | 15 | — | 15 |
| Comprehensive income for the period | — | 12 | (388) | — | (376) | 1 | (375) |
| Dividend | — | — | — | (263) | (263) | (39) | (302) |
| Equity-settled transactions | — | — | — | 16 | 16 | — | 16 |
| Issue of common shares | 1 | — | — | (1) | — | — | — |
| Acquisitions and divestments | — | — | — | (20) | (20) | 10 | (10) |
| September 30, 2025 | 86 | 12 | (967) | 4,800 | 3,931 | 214 | 4,145 |
Invested capital
Invested capital1 at September 30, 2025, totaled €7.9 billion, down €0.4 billion from year-end 2024. This decrease was mainly caused by negative currency translation and the transfer of invested capital in Akzo Nobel India Ltd. to held for sale, partly offset by normal seasonality, resulting in higher trade receivables.
Invested capital
| in € millions | September 30, 2024 |
December 31, 2024 |
September 30, 2025 |
|---|---|---|---|
| Trade receivables | 2,433 | 2,144 | 2,258 |
| Inventories | 1,805 | 1,721 | 1,570 |
| Trade payables | (2,345) | (2,220) | (2,122) |
| Trade working capital | 1,893 | 1,645 | 1,706 |
| Other working capital items | (149) | (137) | (153) |
| Non-current assets | 8,367 | 8,413 | 7,855 |
| Less investments in associates | (226) | (227) | (230) |
| Less pension assets | (1,039) | (929) | (846) |
| Deferred tax liabilities | (514) | (491) | (460) |
| Invested capital | 8,332 | 8,274 | 7,872 |
Trade working capital
Trade working capital1 was €1.7 billion at September 30, 2025 (September 30, 2024: €1.9 billion). Held for sale accounting decreased trade working capital by €30 million.
Trade working capital as a percentage of revenue was 16.7% in Q3 2025. On a comparable basis (excluding held for sale accounting) it was 17.0%, which is down 0.7% compared with Q3 2024, primarily due to lower inventories.
Trade working capital
As % of revenue
1Alternative performance measures: For more details on these measures, refer to the Notes to the condensed consolidated financial statements, APM paragraph.
Notes to the condensed consolidated financial statements
General information
Akzo Nobel N.V. is a public limited liability company headquartered in Amsterdam, the Netherlands. The interim condensed consolidated financial statements include the condensed financial statements of Akzo Nobel N.V. and its consolidated subsidiaries (in this document referred to as "AkzoNobel", "the Group" or "the company"). The company was incorporated under the laws of the Netherlands and is listed on Euronext Amsterdam.
Basis of preparation
All figures in this report are unaudited. The interim condensed consolidated financial statements were discussed and approved by the Board of Management and the Supervisory Board. These interim condensed financial statements have been authorized for issue.
The interim condensed consolidated financial statements should be read in conjunction with AkzoNobel's consolidated financial statements in the 2024 annual report as published on February 26, 2025. The 2024 financial statements were adopted by the Annual General Meeting of shareholders on April 25, 2025. In accordance with Article 393 of Book 2 of the Dutch Civil Code, PricewaterhouseCoopers Accountants N.V. has issued an unqualified auditor's opinion on the 2024 financial statements.
Accounting policies
The material accounting policies applied in the interim condensed consolidated financial statements are consistent with those applied in AkzoNobel's consolidated financial statements for the year ended December 31, 2024, except for IFRS Accounting Standards as adopted by the European Union becoming effective on January 1, 2025, which for this year relates to amendments to IAS 21 "Lack of exchangeability".
These changes have been assessed for their potential impact. It was concluded that these changes do not have a material effect on AkzoNobel's consolidated financial statements.
The interim condensed consolidated financial statements have been prepared in accordance with, and contain the information required by IFRS Accounting Standards as issued by the International Accounting Standards Board as adopted by the European Union (EU-IFRS), IAS 34 "Interim Financial Reporting".
Seasonality
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.
In Performance Coatings, revenue and profitability vary, among others, with building patterns from original equipment manufacturers.
Other activities
In Other activities, we report activities which are not allocated to a particular segment.
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-September 2025 | ||||
| in € millions | Decorative Paints | Performance Coatings | Other | Total |
| The Netherlands | 172 | 86 | — | 258 |
| Other EMEA countries | 1,737 | 1,784 | — | 3,521 |
| North Asia | 340 | 884 | — | 1,224 |
| South East and South Asia | 383 | 544 | — | 927 |
| North America | — | 982 | — | 982 |
| Latin America | 533 | 341 | — | 874 |
| Total | 3,165 | 4,621 | — | 7,786 |
| Timing of revenue recognition | ||||
| Goods transferred at a point in time | 3,118 | 4,459 | — | 7,577 |
| Services transferred over time | 47 | 162 | — | 209 |
| Total | 3,165 | 4,621 | — | 7,786 |
Hyperinflation accounting (Türkiye and Argentina)
For Türkiye and Argentina, hyperinflation accounting is applied. The impact of the application of hyperinflation accounting, which includes the use of end of period rates to translate the statement of the income statement, is shown in the table below.
Hyperinflation accounting
| Third quarter | January September |
|||
|---|---|---|---|---|
| 2024 | 2025 in € millions | 2024 | 2025 | |
| (3) | 1 Revenue | 13 | (24) | |
| (15) | (4) Operating income | (39) | (17) | |
| 1 | (6) | Hyperinflation: gain/loss on net monetary position |
18 | (20) |
| 2 | 1 Other financing income/expenses | 1 | 2 | |
| (12) | (9) Profit before tax | (20) | (35) | |
| 2 | (1) Income tax | (12) | (4) | |
| (10) | (10) Profit for the period | (32) | (39) | |
| 2 | 3 Non-controlling interests | 7 | 7 | |
| (8) | (7) Net income | (25) | (32) |
Hyperinflation impact on adjusted EBITDA year-to-date was €14 million negative (2024: €25 million negative); the impact for Q3 was €3 million negative (2024: €6 million negative).
Workforce
At September 30, 2025, the number of employees was 33,200 (September 30, 2024: 35,400).
Pensions
The net balance sheet position (according to IAS 19) of the pension plans at the end of Q3 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, lower inflation rates and lower plan asset returns in key countries.
Financial risk management
The consolidated financial statements for the year ended December 31, 2024, provide a description of the financial risks faced by the company in its regular operations, as well as the policies and procedures established to mitigate these risks.
The risks, policies and procedures outlined in the consolidated financial statements are still applicable and relevant.
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 September 30, 2025, was €5,294* million (December 31, 2024: €5,256 million); the carrying amount measured at amortized cost was €5,360* 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 €8 million; book value €8 million).
Cash flow reconciliation
| in € millions | September 30, 2024 |
September 30, 2025 |
|---|---|---|
| Cash and cash equivalents in the balance sheet |
1,958 | 1,322 |
| Debt to credit institutions | (55) | (22) |
| Held for sale | — | 24 |
| Total per statement of cash flows | 1,903 | 1,324 |
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.
Contingent liabilities / Project Ichthys update
A contingent liability is a liability of uncertain timing or amount. Contingent liabilities are not recognized in the balance sheet because they are dependent on the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity, or because (i) it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or (ii) the amount of the obligation cannot be measured with sufficient reliability.
Legal proceedings
The company and certain of its (former) group companies are involved in legal proceedings as well as proceedings by / discussions with governments, tax, environmental agencies and other authorities.
While it is not feasible to predict or determine the outcome of all pending and threatening legal proceedings and proceedings by / discussions with governments, tax, environmental agencies and other authorities, the company is of the opinion that the case described below may have a significant impact on the company's consolidated financial position, results of operations and cash flows. In accordance with IAS 37.92, certain information is not disclosed for legal proceedings for which the company concludes that disclosure can be expected to seriously prejudice the outcome of the matter.
Project Ichthys
AkzoNobel is defending claims brought by INPEX Operations Australia in 2021 and JKC Australia LNG in 2017 relating to the specification and use of an AkzoNobel product which was applied to part of the pipework for the Ichthys Onshore Project in Darwin, Australia, a large LNG project, between 2013 and 2015. The claims allege that AkzoNobel is liable for significant damages (relating to degradation of the coating on extensive parts of the pipework) and associated remediation costs are sought under the Australian Consumer Law. The vast majority of the damages claimed for remediation costs have not yet been incurred, rather they relate to (modelled) future inspection and remediation costs. AkzoNobel denies liability and contests the quantum of alleged damages.
In 2024, the case proceeded to trial in the Federal Court of Australia. As part of the proceedings, the Federal Court of Australia appointed a Referee for the consideration of the potential quantum should any
liability be established. Following issuance of the Referee's quantum report, INPEX has sought damages in the amount of AUD 4.8 billion (€2.7 billion). There are several other scenarios in the Referee's quantum report for calculating potential damages with significantly lower amounts. Following the completion of the main hearing phase in May 2025, the Federal Court continues to address various procedural and substantive matters as part of the ongoing proceedings.
AkzoNobel maintains that it is not liable for any alleged damages and thus argues its liability towards both INPEX and JKC should be zero (0). The Federal Court of Australia has yet to decide on liability, and if AkzoNobel is found liable, on the appropriate amount of damages that AkzoNobel is liable for (including whether any liability should be shared with other parties involved).
In Q3 2025, AkzoNobel has recognized a provision of €300 million in respect of Project Ichthys. This provision relates to the elements in the claims for which the IAS 37 recognition criteria are met at 30 September 2025. Other elements not meeting the requirements are presented as contingent liabilities and remain unprovided for. AkzoNobel is insured with a maximum coverage of €500 million for cash outflows, whether presented as a provision or as a contingent liability. In accordance with IAS 37.92, no further information is disclosed, as such disclosure might seriously prejudice the outcome of the matter.
The timing of the Federal Court of Australia's judgment remains uncertain, although it is not anticipated before mid-2026. Either party can appeal the first instance decision to the Full Court of the Federal Court of Australia. A further appeal can be made to the High Court of Australia if special leave is granted. Under Australian law, a verdict would be payable soon after being issued, unless a stay would be obtained. The amounts in such verdict could be significantly higher than the amount currently provided for.
Alternative performance measures
In presenting and discussing AkzoNobel's operating results, management uses certain alternative performance measures (APMs) not defined by IFRS Accounting Standards. Management considers these APMs to be relevant supplementary indicators of the company's performance. These or similar measures are widely used in the industry to assess operational performance, developments and positions. Management believes that reporting these measures
supports readers' understanding of, among others, the company's sales performance, profitability, financial strength and funding requirements.
APMs should not be viewed in isolation as alternatives to the equivalent IFRS measures. Rather, they should be used as supplementary information in conjunction with the most directly comparable IFRS measures. APMs do not have a standardized meaning under IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other companies.
Explanations and reconciliations of the APMs to the most directly comparable IFRS measures can be found in this paragraph.
Identified items
Identified items are special charges and benefits, (post) acquisition and divestment related items, major restructuring and impairment charges, charges and benefits related to major legal, environmental and tax cases, 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.
Operating income to adjusted EBITDA
January - September 2024 January - September 2025
| Decorative Paints |
Performance Coatings |
Other activities |
Total in € millions | Decorative Paints |
Performance Coatings |
Other activities |
Total |
|---|---|---|---|---|---|---|---|
| 364 | 529 | (103) | 790 Operating income | 327 | 183 | (133) | 377 |
| (26) | (17) | (20) | (63) Restructuring-related costs incl. impairments |
(83) | (58) | (10) | (151) |
| (8) | (1) | (7) | (16) Acquisition/divestment-related costs |
(2) | (1) | (21) | (24) |
| (10) | (4) | — | (14) Hyperinflation | (2) | (1) | — | (3) |
| — | — | — | — Legal and environmental | — | (275) | (22) | (297) |
| (3) | — | — | (3) Other | (1) | (2) | (9) | (12) |
| (47) | (22) | (27) | (96) Total identified items | (88) | (337) | (62) | (487) |
| 411 | 551 | (76) | 886 Adjusted operating income | 415 | 520 | (71) | 864 |
| (111) | (132) | (28) | (271) Depreciation and amortization* | (108) | (133) | (30) | (271) |
| 522 | 683 | (48) | 1,157 Adjusted EBITDA | 523 | 653 | (41) | 1,135 |
* Excluding identified items.
Operating income to adjusted EBITDA
Third quarter 2024 Third quarter 2025
| Decorative Paints |
Performance Coatings |
Other activities |
Total in € millions | Decorative Paints |
Performance Coatings |
Other activities |
Total |
|---|---|---|---|---|---|---|---|
| 127 | 171 | (39) | 259 Operating income | 149 | (138) | (40) | (29) |
| (12) | (7) | (9) | (28) Restructuring-related costs incl. impairments |
— | (24) | (2) | (26) |
| (2) | — | (2) | (4) Acquisition/divestment-related costs |
— | (1) | (13) | (14) |
| (6) | (3) | — | (9) Hyperinflation | — | (1) | — | (1) |
| — | — | — | — Legal and environmental | — | (275) | (7) | (282) |
| (3) | — | — | (3) Other | (1) | (2) | — | (3) |
| (23) | (10) | (11) | (44) Total identified items | (1) | (303) | (22) | (326) |
| 150 | 181 | (28) | 303 Adjusted operating income | 150 | 165 | (18) | 297 |
| (38) | (44) | (9) | (91) Depreciation and amortization* | (34) | (44) | (10) | (88) |
| 188 | 225 | (19) | 394 Adjusted EBITDA | 184 | 209 | (8) | 385 |
* Excluding identified items
Adjusted EBITDA margin
Adjusted EBITDA margin is an operational profit margin. Adjusted EBITDA margin is adjusted EBITDA as a percentage of revenue. The measure provides a clear picture of (the development of) profitability.
| Adjusted EBITDA margin | ||||
|---|---|---|---|---|
| Third quarter | January September |
|||
| 2024 | 2025 in % | 2024 | 2025 | |
| 17.3 | 17.4 Decorative Paints | 15.9 | 16.5 | |
| 14.2 | 14.0 Performance Coatings | 14.2 | 14.1 | |
| Other activities* | ||||
| 14.8 | 15.1 Total | 14.3 | 14.6 |
Free cash flow
AkzoNobel reports on free cash flow as management believes it to be a useful measure to provide additional insight into the cash generating capability of its operations. A reconciliation of free cash flow to the most directly comparable IFRS measure is available in the condensed consolidated financial statements.
Capital expenditures
Capital expenditures is the total of investments in property, plant and equipment and investments in intangible assets. Reporting on capital expenditures gives insight into the total allocation of investments.
| Capital expenditures | |||
|---|---|---|---|
| Third quarter | January September |
||
| 2024 | 2025 in € millions | 2024 | 2025 |
| 72 | 62 Investments in property, plant and equipment | 172 | 198 |
| 5 | 4 Investments in intangible assets | 20 | 11 |
| 77 | 66 Capital expenditures | 192 | 209 |
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.
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 comparable IFRS measure is available in the condensed consolidated financial statements.
Management uses trade working capital for cash flow management, to identify opportunities to improve cash generation and to optimize our use of cash.
Adjusted earnings per share
Adjusted earnings per share is used to provide additional insight into the underlying profitability per share of the company. It helps with comparing performance over time, as well as to industry benchmarks and peers.
| Adjusted earnings per share from continuing operations | |||
|---|---|---|---|
| Third quarter | January September |
||
| 2024 | 2025 in € millions | 2024 | 2025 |
| 170 | (190) Profit from continuing operations | 556 | 66 |
| 44 | 326 Identified items reported in operating income | 96 | 487 |
| (3) | 24 Identified items reported in interest | (18) | 22 |
| (10) | 15 Identified items reported in income tax | (31) | (22) |
| (7) | (3) Non-controlling interests | (35) | (28) |
| 194 | 172 Adjusted net income from continuing operations |
568 | 525 |
| 170.8 | 171.0 Weighted average number of shares (in millions) |
170.7 | 171.0 |
| 1.14 | 1.01 Adjusted earnings per share from continuing operations |
3.33 | 3.07 |
(Average) invested capital
Average invested capital is the average of the quarter-end invested capital balances for the last four quarters. Invested capital is total assets (excluding cash and cash equivalents, short-term investments, investments in associates, pension assets, assets held for sale) less current tax liabilities, deferred tax liabilities and trade and other payables.
| Average invested capital | |||
|---|---|---|---|
| October 2023 - September 2024/October 2024 - September 2025 | |||
| in € millions | 2024 | 2025 | ∆% |
| Decorative Paints | 3,849 3,661 | (5%) | |
| Performance Coatings | 3,765 3,628 | (4%) | |
| Other activities | 629 | 898 | |
| Total | 8,243 8,187 | (1%) |
Management uses average invested capital to monitor, assess and optimize the total amount of capital invested.
Return on investment (ROI)
ROI is adjusted operating income of the last 12 months as a percentage of average invested capital. Management uses ROI to assess the efficiency of investments and make informed decisions on capital allocation, in order to maximize returns and drive long-term growth.
| Return on investment (ROI) | ||
|---|---|---|
| October 2023 - September 2024/October 2024 - September 2025 | ||
| in % | 2024 | 2025 |
| Decorative Paints | 12.8 | 13.4 |
| Performance Coatings | 19.0 | 19.4 |
| Other activities1 | ||
| Total2 | 13.4 | 13.3 |
- 1 ROI for Other activities is not shown, as this is not meaningful.
- 2 Excluding held for sale accounting, ROI for 2025 is 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 | ||||
|---|---|---|---|---|
| Third quarter | January-September | |||
| 2024 | 2025 | 2024 | 2025 | |
| 1,083 1,027 Gross profit | 3,311 | 3,113 | ||
| (26) | (28) Identified items | (44) | (126) | |
| 1,109 1,055 Adjusted gross profit | 3,355 | 3,239 | ||
| 41.6 | 41.4 Adjusted gross margin | 41.5 | 41.6 |
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 | ||
|---|---|---|
| October 2023 - September 2024/October 2024 - September 2025 | ||
| in € millions | 2024 | 2025 |
| Operating income | 1,004 | 504 |
| Depreciation and amortization* | 363 | 365 |
| Identified items | 103 | 587 |
| Adjusted EBITDA | 1,470 | 1,456 |
* Excluding identified items.
| Leverage ratio | ||
|---|---|---|
| October 2023 - September 2024/October 2024 - September 2025 | ||
| in € millions | 2024 | 2025 |
| Net debt* | 4,069 | 4,028 |
| Adjusted EBITDA | 1,470 | 1,456 |
| Leverage ratio | 2.8 | 2.8 |
* Breakdown of net debt is available in the net debt paragraph in the condensed consolidated financial statements section.
Intended divestment Akzo Nobel India Ltd.
On June 27, 2025, AkzoNobel announced that a binding agreement had been signed to sell its controlling shareholding in Akzo Nobel India Ltd. to the JSW Group. The net cash proceeds are expected to be approximately €900 million.
The transaction involves the sale of our shares in Akzo Nobel India Ltd. Regulatory approvals have been obtained. The transaction is expected to be completed in the fourth quarter of 2025.
The assets and liabilities of Akzo Nobel India Ltd. 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.
No impairment losses have been recorded as a result of this reclassification. Discontinued operations accounting is not applicable.
On July 2, 2025, the Powder Coatings and International Research Center, previously part of ANIL, were transferred to a wholly owned subsidiary, Akzo Nobel Powder Coatings India Private Ltd. This transfer was treated as a transaction between shareholders, reference is made to the Statement of changes in equity for more details.
The amount of cumulative translation adjustments recorded in equity related to entities classified as held for sale at September 30, 2025, amounted to €113 million negative.
On September 23, 2025, AkzoNobel sold 5% of the share capital of Akzo Nobel India Ltd. through a market block trade. This resulted in €60 million excess consideration over the book value of the shares. As this transaction is considered linked to the divestment of Akzo Nobel India Ltd., this amount will be included in the deal result once control of Akzo Nobel India Ltd. is lost.
| Assets and liabilities held for sale | |
|---|---|
| September 30, 2025 | |
| in € millions | 2025 |
| Intangible assets | 55 |
| Property, plant and equipment | 48 |
| Other non-current assets | 36 |
| Inventories | 57 |
| Receivables | 87 |
| Other current assets | 29 |
| Assets held for sale | 312 |
| Non-current liabilities | 15 |
| Current liabilities | 101 |
| Liabilities held for sale | 116 |
Outlook*
Subject to ongoing market uncertainties and adjusted for exchange rates as of the end of the third quarter, the company expects to deliver adjusted EBITDA around €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.
Following the expected closing of the India disposal, the company expects leverage slightly above 2 times net debt/adjusted EBITDA by the end of 2025. In the mid-term, AkzoNobel aims to maintain leverage around 2 times, while remaining committed to 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, October 21, 2025 The Board of Management
Greg Poux-Guillaume Maarten de Vries
Quarterly statistics
| 2024 | 2025 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Q1 | Q2 | Q3 | Q4 | Full-year in € millions | Q1 | Q2 | Q3 | Year-to-date | |
| Revenue | |||||||||
| 1,056 | 1,139 | 1,089 | 1,017 | 4,301 Decorative Paints | 1,030 | 1,080 | 1,055 | 3,165 | |
| 1,584 | 1,645 | 1,579 | 1,602 | 6,410 Performance Coatings | 1,583 | 1,546 | 1,492 | 4,621 | |
| 2,640 | 2,784 | 2,668 | 2,619 | 10,711 Total | 2,613 | 2,626 | 2,547 | 7,786 | |
| EBITDA* | |||||||||
| 152 | 158 | 166 | 80 | 556 Decorative Paints | 116 | 139 | 186 | 441 | |
| 220 | 227 | 219 | 196 | 862 Performance Coatings | 217 | 193 | (91) | 319 | |
| (22) | (23) | (30) | (55) | (130) Other activities | (47) | (26) | (30) | (103) | |
| 350 | 362 | 355 | 221 | 1,288 Total | 286 | 306 | 65 | 657 | |
| Adjusted EBITDA (excluding Identified items)* | |||||||||
| 156 | 178 | 188 | 113 | 635 Decorative Paints | 147 | 192 | 184 | 523 | |
| 221 | 237 | 225 | 230 | 913 Performance Coatings | 231 | 213 | 209 | 653 | |
| (14) | (15) | (19) | (22) | (70) Other activities | (21) | (12) | (8) | (41) | |
| 363 | 400 | 394 | 321 | 1,478 Total | 357 | 393 | 385 | 1,135 | |
| 13.8 | 14.4 | 14.8 | 12.3 | 13.8 Adjusted EBITDA margin (in %) | 13.7 | 15.0 | 15.1 | 14.6 | |
| Depreciation and amortization | |||||||||
| (36) | (37) | (39) | (39) | (151) Decorative Paints | (39) | (38) | (37) | ||
| (44) | (45) | (48) | (46) | (183) Performance Coatings | (46) | (43) | (47) | ||
| (9) | (10) | (9) | (9) | (37) Other activities | (9) | (11) | (10) | ||
| (89) | (92) | (96) | (94) | (371) Total | (94) | (92) | (94) | ||
| Depreciation and amortization (excluding Identified items) | |||||||||
| (36) | (37) | (38) | (39) | (150) Decorative Paints | (38) | (36) | (34) | ||
| (44) | (44) | (44) | (46) | (178) Performance Coatings | (46) | (43) | (44) | ||
| (9) | (10) | (9) | (9) | (37) Other activities | (9) | (11) | (10) | (114) (136) (30) (280) (108) (133) (30) |
* Alternative performance measures: For more details on these measures, including reconciliations to the most directly comparable IFRS measures and explanation of their use, refer to the Notes to the condensed consolidated financial statements, APM paragraph.
Quarterly statistics
| 2024 | 2025 | |||||||
|---|---|---|---|---|---|---|---|---|
| Q1 | Q2 | Q3 | Q4 | Full-year in € millions | Q1 | Q2 | Q3 | Year-to-date |
| Operating income | ||||||||
| 116 | 121 | 127 | 41 | 405 Decorative Paints | 77 | 101 | 149 | 327 |
| 176 | 182 | 171 | 150 | 679 Performance Coatings | 171 | 150 | (138) | 183 |
| (31) | (33) | (39) | (64) | (167) Other activities | (56) | (37) | (40) | (133) |
| 261 | 270 | 259 | 127 | 917 Total | 192 | 214 | (29) | |
| Identified items included in operating income | ||||||||
| (4) | (20) | (23) | (33) | (80) Decorative Paints | (32) | (55) | (1) | |
| (1) | (11) | (10) | (34) | (56) Performance Coatings | (14) | (20) | (303) | (337) |
| (8) | (8) | (11) | (33) | (60) Other activities | (26) | (14) | (22) | |
| (13) | (39) | (44) | (100) | (196) Total | (72) | (89) | (326) | |
| Adjusted operating income (excluding Identified items)* | ||||||||
| 120 | 141 | 150 | 74 | 485 Decorative Paints | 109 | 156 | 150 | |
| 177 | 193 | 181 | 184 | 735 Performance Coatings | 185 | 170 | 165 | |
| (23) | (25) | (28) | (31) | (107) Other activities | (30) | (23) | (18) | |
| 274 | 309 | 303 | 227 | 1,113 Total | 264 | 303 | 297 | |
| Reconciliation financing income and expenses | ||||||||
| 15 | 9 | 12 | 25 | 61 Financing income | 14 | 10 | 12 | |
| (45) (30) |
(47) (38) |
(44) (32) |
(51) (26) |
(187) Financing expenses (126) Net interest on net debt |
(42) (28) |
(48) (38) |
(45) (33) |
|
| Other interest | ||||||||
| 7 | 7 | 7 | 6 | 27 Financing income related to post-retirement benefits | 8 | 8 | 8 | |
| (4) | — | (1) | 2 | (3) Interest on provisions | — | (2) | (25) | |
| 11 | — | 7 | (18) | — Other items | (10) | (18) | (26) | |
| 14 | 7 | 13 | (10) | 24 Net other financing charges | (2) | (12) | (43) |
* Alternative performance measures: For more details on these measures, including reconciliations to the most directly comparable IFRS measures and explanation of their use, refer to the Notes to the condensed consolidated financial statements, APM paragraph.
Quarterly statistics
| 2024 | 2025 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Q1 | Q2 | Q3 | Q4 | Full-year | Q1 | Q2 | Q3 | Year-to-date | |
| Quarterly net income analysis (in € millions) | |||||||||
| 7 | 5 | 7 | 4 | 23 Results from associates | 7 | 15 | 9 | 31 | |
| 252 | 244 | 247 | 95 | 838 Profit before tax | 169 | 179 | (96) | 252 | |
| (57) | (53) | (77) | (59) | (246) Income tax | (48) | (44) | (94) | (186) | |
| 195 | 191 | 170 | 36 | 592 Profit for the period from continuing operations | 121 | 135 | (190) | 66 | |
| 23 | 22 | 31 | 62 | 29 Effective tax rate (in %) | 28 | 25 | (98) | 74 | |
| Earnings per share from continuing operations (in €) | |||||||||
| 1.07 | 1.03 | 0.95 | 0.12 | 3.17 Basic | 0.63 | 0.73 | (1.13) | 0.22 | |
| 1.06 | 1.03 | 0.95 | 0.12 | 3.16 Diluted | 0.62 | 0.72 | (1.12) | 0.22 | |
| Earnings per share from discontinued operations (in €) | |||||||||
| (0.01) | 0.01 | — | — | — Basic | — | — | (0.01) | (0.01) | |
| (0.01) | 0.01 | — | — | — Diluted | — | — | (0.01) | (0.01) | |
| Earnings per share from total operations (in €) | |||||||||
| 1.06 1.06 |
1.04 1.03 |
0.95 0.95 |
0.12 0.12 |
3.17 Basic 3.16 Diluted |
0.63 0.62 |
0.73 0.72 |
(1.13) (1.13) |
||
| Number of shares (in millions) 170.6 |
170.7 | 170.8 | 170.8 | 170.7 Weighted average number of shares1 | 170.8 | 171.0 | 171.0 | ||
| 170.6 | 170.8 | 170.8 | 170.8 | 170.8 Number of shares at end of quarter1 | 170.9 | 171.0 | 171.1 | ||
| Adjusted earnings from continuing operations (in € millions)* | |||||||||
| 195 13 |
191 39 |
170 44 |
36 100 |
592 Profit from continuing operations 196 Identified items reported in operating income |
121 72 |
135 89 |
(190) 326 |
||
| (1) | (14) | (3) | (3) | (21) Identified items reported in interest | (2) | — | 24 | ||
| (3) | (18) | (10) | (23) | (54) Identified items reported in income tax | (17) | (20) | 15 | ||
| (13) | (15) | (7) | (15) | (50) Non-controlling interests | (14) | (11) | (3) | ||
| 191 | 183 | 194 | 95 | 663 Adjusted net income from continuing operations | 160 | 193 | 172 | 0.22 0.22 171.0 171.1 66 487 22 (22) (28) 525 |
* Alternative performance measure: For more details on this measure, including reconciliations and explanation of its use, refer to the Notes to the consolidated financial statements, APM paragraph.
Glossary
Adjusted earnings per share from continuing operations are the basic earnings per share from continuing operations, excluding Identified items and taxes thereon.
Adjusted EBITDA is operating income excluding depreciation, amortization and Identified items.
Adjusted EBITDA margin is adjusted EBITDA as percentage of revenue.
Adjusted operating income is operating income excluding Identified items.
Capital expenditures is the total of investments in property, plant and equipment and investments in intangible assets.
Comprehensive income is the change in equity during a period resulting from transactions and other events other than those changes resulting from transactions with shareholders in their capacity as shareholders.
Constant currencies calculations exclude the impact of changes in foreign exchange rates by re-translating the prior year local currency amounts into euros at the current year's foreign exchange rates.
EBITDA is operating income excluding depreciation and amortization.
EBITDA margin is EBITDA as a percentage of revenue.
EMEA is Europe, Middle East and Africa.
Free cash flow is net cash generated from/(used for) operating activities minus capital expenditures.
Identified items are special charges and benefits, (post) acquisition and divestment related items, major restructuring and impairment charges, charges and benefits related to major legal, environmental and tax cases, and hyperinflation accounting adjustments for inventory positions that exceed normal operational levels.
Invested capital is total assets (excluding cash and cash equivalents, short-term investments, investments in associates, pension assets, assets held for sale) less current tax liabilities, deferred tax liabilities and trade and other payables. Invested capital balances on business area level contain intercompany positions, which eliminate on consolidated level.
Average invested capital is the average of the quarter-end invested capital balances for the last four quarters.
Latin America excludes Mexico.
Leverage ratio is calculated as net debt divided by adjusted EBITDA for the last 12 months.
Net debt is defined as long-term borrowings plus short-term borrowings, less cash and cash equivalents and short-term investments.
North America includes Mexico.
North Asia includes, among others, China, Japan and South Korea.
Operating income is defined as income excluding net financing expenses, results from associates, income tax and profit/loss from discontinued operations. Operating income includes the share of non-controlling interests. Operating income includes Identified items to the extent these relate to lines included in operating income.
Trade working capital is defined as the sum of inventories, trade receivables and trade payables. When expressed as a ratio, trade working capital is measured against four times last quarter revenue.
Organic sales compares sales between periods, excluding the impact of changes in consolidation, the impact of changes in foreign exchange rates and the impact of hyperinflation accounting. Refer to "Constant currencies" for details on the calculation of the foreign exchange rate impact.
Other working capital is defined as other receivables, plus current tax assets, less other payables and current tax liabilities.
ROI is adjusted operating income of the last 12 months as a percentage of average invested capital.
SG&A costs include selling and distribution expenses, general and administrative expenses, and research, development and innovation expenses.
SESA is South East and South Asia and includes the Pacific.
Safe harbor statement
This report contains statements which address such key issues as AkzoNobel's growth strategy, future financial results, market positions, product development, products in the pipeline and product approvals. Such statements should be carefully considered, and it should be understood that many factors could cause forecast and actual results to differ from these statements. These factors include, but are not limited to, price fluctuations, currency fluctuations, developments in raw material and personnel costs, pensions, physical and environmental risks, legal issues, and legislative, fiscal, and other regulatory measures, as well as significant market disruptions. Stated competitive positions are based on management estimates supported by information provided by specialized external agencies. For a more comprehensive discussion of the risk factors affecting our business, please see our latest annual report.
Brand and trademarks
In this report, reference is made to brands and trademarks owned by, or licensed to, AkzoNobel. Unauthorized use of these is strictly prohibited.
Akzo Nobel N.V.
Christian Neefestraat 2 P.O. Box 75730 1070 AS Amsterdam, the Netherlands T +31 88 969 7555 www.akzonobel.com
For more information:
The explanatory sheets used during the press conference can be viewed on AkzoNobel's corporate website: www.akzonobel.com
AkzoNobel Global Communications T +31 88 969 7833
AkzoNobel Investor Relations T +31 88 969 0139 E [email protected]
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 www.akzonobel.com.
© 2025 Akzo Nobel N.V. All rights reserved.
Financial calendar
Ex-dividend date of 2025 interim dividend October 27, 2025 Record date of 2025 interim dividend October 28, 2025 Payment of 2025 interim dividend November 6, 2025 Report for the full-year and the fourth quarter 2025 February 3, 2025