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Akzo Nobel: Ichthys provision weighs on profit – adjusted EBITDA margin edges higher
Akzo Nobel posted 1 % organic sales growth in Q3 2025, while reported revenue declined by 5 % due to adverse currencies. A EUR 275 million charge to record a provision for the long-running Australian court case (Project Ichthys) drove operating income negative. Adjusted EBITDA margin improved to 15.1 % on efficiency gains.
In the third quarter, revenue was EUR 2,547 billion (−5 % year on year) as price/mix rose by 1 % and volumes declined by 1 %, offset by a 5 % negative FX translation. Operating income came in at EUR 29 million negative (Q3 2024: EUR 259 million positive) after recording a EUR 275 million provision linked to Project Ichthys; a further EUR 25 million interest component was recognised in financing expenses. Adjusted EBITDA was EUR 385 million (−2 %), with margin up to 15.1 % (Q3 2024: 14.8 %). Net cash from operating activities increased to EUR 331 million; free cash flow was EUR 265 million.
Decorative Paints delivered 2 % organic growth (higher volumes in Asia and Latin America), with an adjusted EBITDA margin of 17.4 %. Performance Coatings was flat organically; FX (−5 %) and softer volumes in Europe/North America led to 6 % lower reported revenue; adjusted EBITDA margin was 14.0 %. The Ichthys provision primarily impacted the segment’s operating income.
Outlook and portfolio: India divestment on track, mid-term targets intact
For full-year 2025, Akzo Nobel expects adjusted EBITDA of around EUR 1.48 billion (assuming constant currencies). Mid-term ambitions are an adjusted EBITDA margin above 16 % and ROI between 16 % and 19 %, underpinned by organic growth and industrial excellence. Following the anticipated India disposal closing in December 2025, leverage is expected to be slightly above 2.0× net debt/adjusted EBITDA by year-end; the company aims to maintain leverage around 2.0× and reaffirm its strong investment-grade rating.
