Akzo Nobel (AKZA) Q2 2026 earnings summary

Executive summary

• Organic sales grew 2% year-over-year in Q2 2026, with pricing up 3% and stable volumes, despite a 1% negative mix impact and revenue down 1% due to FX and divestments.

• Adjusted EBITDA margin rose to 15.4% in Q2 2026, with adjusted EBITDA of €398 million, driven by disciplined pricing and cost control.

• H1 2026 adjusted EBITDA reached €743 million, up 6% year-over-year at comparable scope and FX.

• Merger preparations with Axalta are progressing, with EGM scheduled for August 5 and closing expected end of 2026 to early 2027; over $600 million in cost synergies identified.

• Achieved a 50% reduction in Scope 1 and 2 carbon emissions, four years ahead of target.

Financial highlights

• Q2 2026 revenue was €2,589 million, down 1% year-over-year due to FX and India divestment.

• Adjusted gross margin improved to 42.7% (+70bps YoY); adjusted EBITDA margin at 15.4% (+40bps YoY).

• Free cash flow for Q2 2026 was €108 million, supported by higher EBITDA and improved working capital, but down from €162 million in Q2 2025.

• Trade working capital improved to 15.6% of revenue, 140 basis points lower year-over-year.

• Net leverage stood at 2.2x at June 30, 2026, and return on investment improved to 13.8%.

Outlook and guidance

• 2026 adjusted EBITDA target of at or above €1.47 billion reaffirmed; Q3 adjusted EBITDA expected around €390 million.

• Full-year free cash flow trajectory unchanged; working capital expected at 14.5% of revenue and CapEx at €300 million.

• Volumes expected to remain flat; pricing actions to fully offset raw material and logistics inflation.

• Net industrial program benefit of €90 million expected, with identified items cash out of ~€250 million (including merger costs).

• Leverage ratio targeted around 2x net debt/adjusted EBITDA by year-end 2026.