Akzo Nobel underlying earnings of 388 million euros narrowly beat forecasts

Key Facts

Akzo Nobel's adjusted earnings before interest, taxes, depreciation and amortization reached 388 million euros in the third quarter of 2026, according to Investing.com, narrowly beating analysts' average forecast. The company reported earnings on the same basis of 385 million euros in the year-earlier period, marking a slight year-on-year increase. The analyst consensus published by Akzo Nobel had put expected quarterly earnings at 387 million euros, close to the reported figure. During the results session on October 21, 2026, the company's shares rose 1.3% to 59.24 euros, according to Investing.com's report published that day. The share price gain coincided with the company maintaining its annual adjusted earnings guidance at around 1.47 billion euros.

The quarterly results showed an improvement in the adjusted earnings margin and a narrower net loss, alongside a decline in cash generated from operating activities compared with the corresponding period. Akzo Nobel said in its third-quarter results statement that its adjusted EBITDA margin rose to 15.3%, from 15.1% in the third quarter of 2025. On the bottom line, the net loss narrowed to 178 million euros from a loss of 194 million euros a year earlier, according to Investing.com. Net cash generated from operating activities totaled 187 million euros, compared with 331 million euros in the same period last year. The company described this item in its statement as "positive net cash from operating activities," despite the decline from the comparative period.

Akzo Nobel's adjusted earnings margin had also improved year on year in the second quarter of 2026, according to its results statement for that period. The margin then stood at 15.4%, compared with 15.0% in the second quarter of 2025, putting it above the margin recorded in the third quarter of the current year. On sales, the company reported organic growth of 2% in its second-quarter results, driven by pricing, while volumes remained stable during the period. Describing that quarter's performance, it said "organic sales growth increased 2% thanks to pricing, with stable volumes," identifying the source of the organic increase. Reported second-quarter revenue, however, fell 1%, diverging from the organic sales growth the company reported for the same period.

Alongside the results, management lowered its capital expenditure forecast for the full year 2026 to 275 million euros from its previous expectation of 300 million euros, according to Investing.com. The revision covered the annual capital expenditure plan, while the company kept its adjusted EBITDA forecast unchanged. On divestments, Akzo Nobel signed binding agreements during October 2026 to sell its decorative paints businesses in Southeast Asia to Nippon Paint. The businesses covered by the agreements had an enterprise value of around $1.35 billion, equivalent to 1.20 billion euros, according to an official company filing with the U.S. Securities and Exchange Commission. This valuation relates to the Asian decorative paints businesses to be sold under the binding agreements announced by the company.

Akzo Nobel expects net cash proceeds from the sale of those businesses to reach around a billion dollars upon completion, according to the same official filing. The expected amount is equivalent to 0.9 billion euros, representing estimated proceeds after taxes and minority interests. Expected net cash from the divestment thus falls below the announced enterprise value of the businesses, with those two items factored into the estimate of the company's final proceeds. Separately, Akzo Nobel and Axalta announced that they had chosen "Axanzo" as the name of the merged entity, according to an official statement from Axalta. The combined entity will adopt this name after the merger closes, while the companies will continue to operate independently until the transaction is completed, according to the announcement.

The expected transaction completion schedule begins with the sale of the Indonesian business, which Akzo Nobel expects to complete separately in late 2026, according to its official filing on the Asian divestment. Akzo Nobel and Axalta expect to complete their merger in early 2027, according to the timing given in the announcement of the combined entity's name. Completion of the merger remains subject to regulatory approvals and the satisfaction of closing conditions, with the companies continuing to operate independently until it closes. For the remaining decorative paints businesses covered by the Asian sale agreements, Akzo Nobel is targeting completion of the divestment in mid-2027, excluding the Indonesian business with its separate timetable. The Asian business sales are also subject to customary closing conditions and regulatory approvals, according to the filing that set out their expected completion dates.