Akzo Nobel N.V.

Q2 total revenue was down 1%, mainly due to the India liquid businesses divestment (3% impact), while organic sales were up 2% year-on-year on 3% pricing and flat volumes with a 1% negative mix effect. Adjusted gross margin was 42.7%, up 70 basis points year-on-year, and adjusted EBITDA margin was 15.4%, up 40 basis points; adjusted EBITDA was EUR 398 million, up 5% at comparable scope. Free cash flow was EUR 108 million, trade working capital improved to 15.6% of revenue (140 basis points below prior year), return on investment was 13.8%, and net leverage was 2.2x. For 2026, adjusted EBITDA guidance remains at or above EUR 1,470 million, with Q3 adjusted EBITDA expected at around EUR 390 million and volumes broadly flat; pricing is expected to build further as raw material inflation flows through, and the full-year free cash flow trajectory was unchanged with working capital expected at 14.5%, CapEx around EUR 300 million, and identified cash outflows around EUR 250 million including merger costs.

Greg Poux-Guillaume emphasized execution, saying the company did what it said it would do: protect margins through pricing, keep volumes stable, and continue cost control. He highlighted that pricing is now fully in place to offset current inflation, with more pricing expected as raw material costs peak in Q3, and said he remains confident about the rest of the year. On strategy, he stressed that the Axalta merger remains on schedule and that the combination has substantial synergy potential, while also noting AkzoNobel reached its 50% Scope 1 and 2 carbon reduction target four years early.

Maarten de Vries focused on the financial bridge: organic sales up 2%, price up 3%, flat volumes, and a 1% mix headwind, with the India disposal and FX weighing on reported revenue. He pointed to EUR 398 million of adjusted EBITDA, a 15.4% margin, EUR 108 million of free cash flow, working capital at 15.6% of revenue, and leverage at 2.2x. He also said full-year working capital should end at 14.5%, CapEx is now expected around EUR 300 million, and identified cash outflows are roughly EUR 250 million, while confirming that full-year free cash flow assumptions were unchanged.

Analysts pressed on Deco disposals, especially Southeast Asia and Europe, and management said the strategy is unchanged: AkzoNobel wants to focus Deco on leadership positions, while Southeast Asia is still under review and Europe is generally not for sale. Questions also focused on Marine and Protective, where management said the softer Q2 was temporary, driven by ships stuck at sea, high day rates, and cautious tendering around raw material trends rather than a structural slowdown. Other questions covered pricing versus raw materials, with management saying pricing had reached 3% in Q2 and should rise further in H2, and cash flow, where CFO said no change to full-year FCF guidance despite merger-related cash costs.