AkzoNobel Q3 profitability improves to 15.1% on accelerated cost savings

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.

Provision project Ichthys

In Q3 2025, 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 September 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 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.

About this media release

This media release covers the highlights for the quarter. We recommend reading the media release in combination with the full quarterly report. The quarterly report provides additional information, including the IAS34 condensed consolidated financial statements. The interim condensed consolidated financial statements were discussed and approved by the Board of Management and the Supervisory Board. These condensed financial statements have been authorized for issue. All figures in this media release and in the AkzoNobel quarterly report are unaudited.

Forward-looking statements are based on organic volumes and constant currencies, and assume no significant market disruptions. Please read the Safe Harbor Statement in the full quarterly report.

The report for this quarter can be viewed and downloaded here https://akzo.no/Q3-2025-results

Organic sales, Adjusted EBITDA and Adjusted EBITDA margin (%) and leverage are alternative performance measures (APM’s). AkzoNobel uses APM adjustments to the 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 AkzoNobel quarterly report.

This is a public announcement by Akzo Nobel N.V. pursuant to section 17 paragraph 1 of the European Market Abuse Regulation (596/2014).

About AkzoNobel

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.