Akzo Nobel N.V.

Group adjusted EBITDA was EUR 398 million, up 5% at comparable scope, while adjusted EBITDA margin improved to 15.4%, up 40 basis points year over year. Adjusted gross margin was 42.7%, up 70 basis points year over year. Organic sales increased 2% year on year, with pricing up 3%, volumes flat, and mix down 1%; total revenue declined 1% after the India liquid-business divestment reduced revenue by 3% and FX was slightly negative. Free cash flow was EUR 108 million, trade working capital was 15.6% of revenue, down 140 basis points year over year, and net leverage was 2.2x. For 2026, adjusted EBITDA guidance remains at or above EUR 1,470 million; Q3 adjusted EBITDA is expected at around EUR 390 million, volumes are forecast to be broadly flat, and pricing should build further as inflation flows through.

Greg Poux-Guillaume framed the quarter as proof that AkzoNobel is executing its plan: pricing was used to protect margins, volumes were kept stable, and costs remained disciplined. He highlighted fifth straight quarter of year-over-year margin expansion, said the industrial program is on track, and stressed that pricing actions will continue to offset raw-material inflation. On strategy, he said the Deco portfolio review is unchanged but Southeast Asia is being evaluated because those businesses are becoming more attractive, and he remained upbeat on the Axalta merger, calling it a compelling combination with substantial synergy potential.

Maarten de Vries emphasized the mechanics behind the quarter: 3% pricing, flat volumes, a 1% negative mix impact, and a 3% revenue drag from the India divestment, with FX only a slight headwind. He noted trade working capital improved to 15.6% of revenue, free cash flow was EUR 108 million, and net leverage ended at 2.2x. On guidance, he said the 2026 EBITDA target remains unchanged, CapEx is now roughly EUR 300 million, working capital is expected to end the year at 14.5%, and identified cash outs are around EUR 250 million including merger costs.

Analysts focused on Deco disposals, the pace of pricing versus raw materials, and whether Q4 needs a step-up to meet full-year guidance. Management said the Deco strategy has not changed: the company wants leadership positions, is still evaluating Southeast Asia, and sees Europe as different because regional scale and manufacturing flexibility support the business even where local share is lower. On pricing/raw materials, management said Q2 pricing offset inflation, Q3 should see further pricing as raw-material impact peaks, and they are not seeing demand destruction so far. They also said Marine and Protective softness is temporary and tied to ships being stuck at sea plus cautious tendering, not a structural reset.