AkzoNobel Delivers Strong Q1 on Cost Reduction and Pricing

[By: Akzo Nobel N.V.]

Akzo Nobel N.V. (AKZA; AKZOY) publishes results for Q1 2025:

Highlights Q1 2025 (compared with Q1 2024)

• Organic sales flat; revenue down 1%
• Adjusted EBITDA €357 million (adjusted EBITDA margin: 13.7%), flat at constant currencies
• Efficiency actions ahead of schedule
• Higher prices and strong cost reduction compensating for lower volumes and inflation
• Net cash from operating activities negative €112 million (2024: negative €170 million)

AkzoNobel CEO Greg Poux-Guillaume commented: “We delivered a better-than-expected quarter with positive pricing and strong cost reduction. Our efficiency measures are paying off, allowing us to compensate for softer markets and persistent inflation. And there’s more to come as we continue to streamline our model, organization and footprint.

“While macro-economic volatility has been fueled by US tariffs, our local-for-local and procurement de-risking strategic principles continue to largely shield us from direct impacts on our cost base or our ability to deliver. However, we expect to be indirectly impacted by more timid customer demand as economic growth slows during this period of reassessment for global trade. All the more reason to remain focused on our self-help measures to achieve our full-year outlook and build a stronger AkzoNobel.”

AkzoNobel in € millions	Q1 2024	Q1 2025	Δ%	Δ% organic
Revenue	2,640	2,613	(1%)	-%
Operating income	261	192
Adjusted EBITDA	363	357	(2%)
Adjusted EBITDA margin	13.8%	13.7%

Outlook

Subject to ongoing market uncertainties and assuming constant currencies, AkzoNobel expects to deliver 2025 adjusted EBITDA above €1.55 billion.

For the mid-term, AkzoNobel aims to expand profitability to deliver an adjusted EBITDA margin of above 16% and a return on investment between 16% and 19%, underpinned by organic growth and industrial excellence.

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.