AkzoNobel earnings for the third quarter of 2026 showed higher adjusted profitability but a wider operating loss. The paints and coatings company reported on October 21 that pricing drove 2% organic sales growth, while its adjusted EBITDA margin expanded for a sixth consecutive quarter. Reported revenue was broadly flat at €2.538 billion.
Key Takeaways
- Adjusted EBITDA rose 1% to €388 million, with the margin reaching 15.3%.
- The operating loss widened as Russia deconsolidation and the Pakistan divestment affected results.
- AkzoNobel signed a $1.35 billion Southeast Asian paints sale and expects its Axalta merger to close in early 2027, subject to approvals.
Table of Contents
- AkzoNobel earnings separate underlying gains from reported losses
- Full-year outlook remains on a standalone basis
- Portfolio sale advances while Axalta approval process continues
- Conclusion
AkzoNobel earnings separate underlying gains from reported losses
AkzoNobel’s third-quarter results announcement showed adjusted EBITDA growth of 4% on an organic basis, equivalent to €15 million. That measure excludes currency movements, changes in consolidation and hyperinflation accounting, helping distinguish underlying trading from changes in the group’s reported scope.
CEO Greg Poux-Guillaume attributed the margin expansion to pricing and the company’s cost-savings plan in challenging markets. The adjusted EBITDA margin increased by 0.2 percentage points from a year earlier.
The improvement did not extend to operating income. AkzoNobel reported an operating loss of €73 million, compared with a €29 million loss in the third quarter of 2025, and identified Russia deconsolidation and the Pakistan divestment as factors affecting the result. Operating cash flow also declined, despite remaining positive.
The contrast matters: stronger adjusted profitability did not translate into better reported operating income or cash generation during the quarter. The company identifies adjusted EBITDA as an alternative performance measure; the quarterly figures are unaudited.
| Item | Details |
|---|---|
| Revenue | Q3 2026: €2.538 billion; Q3 2025: €2.547 billion |
| Adjusted EBITDA | Q3 2026: €388 million; Q3 2025: €385 million |
| Adjusted EBITDA margin | Q3 2026: 15.3%; Q3 2025: 15.1% |
| Operating income | Q3 2026: loss of €73 million; Q3 2025: loss of €29 million |
| Net cash from operating activities | Q3 2026: €187 million; Q3 2025: €331 million |
Full-year outlook remains on a standalone basis
Management expects around €100 million of adjusted EBITDA improvement in constant currencies for 2026. Its full-year adjusted EBITDA forecast is approximately €1.47 billion, calculated at year-end 2025 exchange rates and adjusted for divestments of its liquid coatings businesses in Asia.
The outlook is conditional on current market visibility and prevailing trading conditions. It excludes any effects from the proposed Axalta merger, so it should not be read as guidance for a combined business.
AkzoNobel expects year-end leverage of around two times net debt to adjusted EBITDA. Its medium-term ambitions include an adjusted EBITDA margin above 16% and an adjusted return on average invested capital of 16%–19%; these are targets rather than achieved results.
Portfolio sale advances while Axalta approval process continues
AkzoNobel signed binding agreements to sell its Decorative Paints business in Southeast Asia for $1.35 billion. Poux-Guillaume said the agreement concludes the strategic review of the company’s Asian paints portfolio. The announcement describes an agreed transaction, not a completed sale.
The company also said regulatory approvals for its proposed merger with Axalta were advancing. Shareholders of both companies approved the transaction-related resolutions on August 5, 2026, but closing remains subject to regulatory approvals and is expected in early 2027.
Conclusion
AkzoNobel’s quarter combined pricing-led gains in adjusted profitability with weaker reported operating income and cash flow. The next milestones are delivery against its standalone 2026 outlook and the remaining regulatory approvals for the Axalta merger ahead of its expected early-2027 closing.
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