AkzoNobel shared its third quarter numbers today, as it aims to expand profitability to deliver an adjusted EBITDA margin of above 16 per cent and a return on investment between 16 and 19 per cent, underpinned by “organic growth and industrial excellence.”
“We’ve had a resilient third quarter, with profitability up to 15.1 per cent on disciplined pricing and continued benefits from our SG&A and industrial excellence programs,” says CEO Greg Poux-Guillaume. “Despite continued macro-economic softness and the translation effect of a strong euro, we’ve delivered on consensus. We’re progressing on our strategic roadmap as our teams continue to execute with agility and focus.”
Part of that roadmap includes the sale of Akzo Nobel India Ltd., which is on track to close in December 2025 as all regulatory approvals have been granted.
Following the expected closing of the India disposal, the company expects leverage slightly above two times net debt/adjusted EBITDA by the end of 2025. In the mid-term, AkzoNobel aims to maintain leverage around two times, while remaining committed to a strong investment grade credit rating.
Highlights Q3 2025 (compared with Q3 2024)
- Organic sales up 1% driven by price/mix; revenue down 5% on adverse currencies;
- Adjusted EBITDA at €385 million, including €26 million adverse currency impact (2024: €394 million);
- Adjusted EBITDA margin expansion to 15.1% (2024: 14.8%) driven by efficiency actions; and
- Net cash from operating activities positive €331 million (2024: positive €294 million).
Ichthys Project in Australia
AkzoNobel has recognized a provision of €300 million (€275 million in operating income) in respect to an Australian project from 2013-15 (Ichthys). This provision relates to the elements in the claims for which the IAS37 recognition criteria are met at Sept. 30, 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.
The report for this quarter can be viewed and downloaded here https://akzo.no/Q3-2025-results