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Hempel reports record-breaking profitability in 2025
Hempel has achieved its highest profitability to date, with a free cash flow of EUR 259 million and an adjusted EBITDA margin of 18.2 %. Strong performance in the Marine segment and continued progress on ESG goals underline its resilience amid global challenges.
Hempel achieved a remarkable free cash flow of EUR 259 million, up from EUR 139 million in 2024, alongside an adjusted EBITDA margin of 18.2 %. Total revenue reached EUR 2,165 million, with organic sales growth of 3.4 %, driven by strong volumes across key segments despite challenges such as currency depreciation.
Peter la Cour Gormsen, Executive Vice President and CFO at Hempel, emphasised the significance of the achievement: “I am very pleased with our 2025 performance – a year in which we delivered our best free cash flow to date while continuing to invest in innovation and customer value. Despite external headwinds, we managed to deliver strong financial results, positioning ourselves for future growth.”
Marine segment drives outstanding growth
The company’s marine segment stood out with record organic sales growth of 9.8 %, totalling EUR 750 million. Sustained customer confidence and a global newbuilding boom contributed significantly to this milestone, marking the strongest Marine results in Hempel’s history.
Other segments showed mixed results. The energy and infrastructure segment saw organic growth of 0.1 %, reaching EUR 775 million, with solid demand for passive fire protection and corrosion-resistant solutions offset by weaker sales in the oil and gas sector. Meanwhile, the decorative segment grew organically by 0.6 %, driven by luxury products from Farrow & Ball and strong mid-market performance by Crown Paints in the UK.
Sustainability milestones and ESG progress
In 2025, the Danish coatings producer made significant strides in sustainability, helping customers save approximately 35.9 million tonnes of CO2 through low-emission coating technologies and solutions designed to extend asset lifetimes. The company reduced its Scope 1 and 2 CO2e emissions by 70 % compared to its 2019 baseline, with a target to reach a 90 % reduction by 2026.
The company also strengthened its commitment to emissions reduction across the value chain, revising its Scope 3 target to a 55 % reduction in emissions intensity per euro added. Initiatives such as emissions-based supplier screening and integrating sustainability into global tenders demonstrate its long-term dedication to climate goals.
Additionally, the coatings producer exceeded its target for gender diversity, achieving 34 % female representation in leadership and across its overall workforce. The company continues to pursue balanced gender representation, aiming to ensure no single gender exceeds 60 % of the organisation.
Outlook for 2026
Looking ahead, the company expects complex market conditions to persist but enters 2026 with strong momentum. The launch of its new strategy, “Accelerate to Win,” in January 2026 aims to sharpen its commercial focus and execution pace. For the year, Hempel projects low single-digit organic revenue growth and an adjusted EBITDA margin of around 18 %, building on its record-breaking performance in 2025.
