Company Reports

AkzoNobel is the world’s third-largest paint and coatings producer, operating with a substantial footprint across multiple continents. The company is more internationally skewed than peers, with Europe, the Middle East, and Africa representing 48% of sales in 2025, followed by 28% from Asia, 12% from Latin America, and 12% from North America. The company operates through two segments: decorative paints (40% of sales) and performance coatings (60% of sales).

AkzoNobel reported tepid second-quarter results amid a difficult market environment, generating revenue of approximately EUR 2.6 billion and expanding its adjusted EBITDA margin by 40 basis points to 15.4%.

We are transferring coverage of AkzoNobel, the third-largest global producer of paints and coatings.

AkzoNobel is the world’s third largest paint and coatings producer, operating with a substantial footprint across multiple continents. The company is more internationally skewed than peers, with Europe, Middle East, and Africa representing 48% of sales in 2025,

AkzoNobel reported mixed first-quarter results. Revenue declined 9% due to modest volume weakness and a significant foreign-currency headwind. Margin performance was more resilient, with EBITDA margin expanding to 14.5%.

AkzoNobel reported mixed fourth-quarter results, with revenue down 9%, driven by slightly lower volumes and another large negative impact from foreign-currency translation, though ongoing cost efficiency measures brought operating margin up to 11.4% for the year.

AkzoNobel and Axalta Coating Systems announced their intention to merge, creating a new second-largest global paint and coatings provider. The deal will require some regulatory approvals and would likely take place by early 2027.

AkzoNobel is the world’s third-largest producer of paints and coatings, operating with a substantial footprint across multiple continents. Its products are sold to a wide variety of end markets, including architectural, automotive, packaging, marine, and aerospace. Europe/Middle East/Africa represents the largest region for the company, accounting for almost half of sales. While AkzoNobel is one of the most diversified paint and coatings producers, it has somewhat focused its portfolio in recent years, exemplified by the sale of its specialty chemical business. Akzo announced a portfolio review in 2024, which resulted in additional divestments for some of its noncore assets and culminated in the announced merger with Axalta Coating Systems, the sixth-largest provider active primarily in the automotive manufacturing and refinishing markets.

AkzoNobel is the world’s third-largest producer of paints and coatings, operating with a substantial footprint across multiple continents. Its products are sold to a wide variety of end markets, including architectural, automotive, packaging, marine, and aerospace. Europe/Middle East/Africa represents the largest region for the company, accounting for almost half of sales. While AkzoNobel is one of the most diversified paint and coatings producers, it has somewhat focused its portfolio in recent years, exemplified by the sale of its specialty chemical business. Additionally, Akzo announced a portfolio review in 2024, which could include additional divestments or strategic alternatives for some of its noncore assets.

AkzoNobel reported underwhelming third-quarter results with top-line revenue down 4.5%, driven by slightly lower volumes and another large negative impact from foreign-currency translation.

AkzoNobel is the world’s third-largest producer of paints and coatings, operating with a substantial footprint across multiple continents. Its products are sold to a wide variety of end markets, including architectural, automotive, packaging, marine, and aerospace. Europe/Middle East/Africa represents the largest region for the company, accounting for almost half of sales. While AkzoNobel is one of the most diversified paint and coatings producers, it has somewhat focused its portfolio in recent years, exemplified by the sale of its specialty chemical business. Additionally, Akzo announced a portfolio review in 2024, which could include additional divestments or strategic alternatives for some of its noncore assets.

AkzoNobel is the world’s third-largest producer of paints and coatings, operating with a substantial footprint across multiple continents. Its products are sold to a wide variety of end markets, including architectural, automotive, packaging, marine, and aerospace. Europe/Middle East/Africa represents the largest region for the company, accounting for almost half of sales. While AkzoNobel is one of the most diversified paint and coatings producers, it has somewhat focused its portfolio in recent years, exemplified by the sale of its specialty chemical business. Additionally, Akzo announced a portfolio review in 2024, which could include additional divestments or strategic alternatives for some of its noncore assets.

AkzoNobel reported lackluster second-quarter results with top-line revenue down nearly 6%, driven by lower volumes and a large negative impact from foreign currency translation.

AkzoNobel is the world’s third-largest producer of paints and coatings, operating with a substantial footprint across multiple continents. Its products are sold to a wide variety of end markets, including architectural, automotive, packaging, marine, and aerospace. Europe/Middle East/Africa represents the largest region for the company, accounting for almost half of sales. While AkzoNobel is one of the most diversified paint and coatings producers, it has somewhat focused its portfolio in recent years, exemplified by the sale of its specialty chemical business. Additionally, Akzo announced a portfolio review in 2024, which could include additional divestments or strategic alternatives for some of its noncore assets.

AkzoNobel’s first-quarter results were mixed, as weakness across the decorative business offset relatively good results in the performance coatings business. Overall, organic sales were flat year over year. We are encouraged by Akzo’s price capture during the quarter, contributing 2% growth, but largely offset by a 2% decline in total volume. We also view management’s commentary on tariffs as positive, in general, with an expected EUR 35 million impact on annualized EBITDA costs if current tariffs remain, before any pricing mitigation actions. The greater risk derives from a potential softening in the macroeconomic environment, specifically for the coatings business, if a prolonged tariff regime were to hamper industrial activity. Ultimately, Akzo has worked to localize its raw material procurement and production, which should shield the firm from material tariff impacts, but a global slowdown in growth could have a strong impact on the company’s volumes. As such, we maintain our EUR 66 per share fair value estimate.

Narrow-moat-rated AkzoNobel reported somewhat underwhelming fourth-quarter results as it continued to navigate mixed end-market demand. Net sales rose roughly 3.5% year over year, driven by gains from both segments. Akzo benefited from favorable foreign-currency exchange in the quarter, as consolidated volume was largely flat and selling prices rose roughly 1% from a year ago. While we are encouraged by strength in end markets like powder coatings and marine, we think headwinds in China, automotive, and general industrial will persist for at least the next few quarters, slowing growth. As such, we are maintaining our EUR 66 fair value estimate.

AkzoNobel is the world’s third-largest producer of paints and coatings, operating with a substantial footprint across multiple continents. Its products are sold to a wide variety of end markets, including architectural, automotive, packaging, marine, and aerospace. Europe/Middle East/Africa represents the largest region for the company, accounting for almost half of sales. While AkzoNobel is one of the most diversified paint and coatings producers, it has somewhat focused its portfolio in recent years, exemplified by the sale of its specialty chemical business. Additionally, Akzo announced a portfolio review in 2024, which could include additional divestments or strategic alternatives for some of its noncore assets.

After taking a fresh look at AkzoNobel, we have decreased our fair value estimate to EUR 66 per share from EUR 83 as we have tempered our long-term margin outlook. We are maintaining our narrow economic moat rating and our standard capital allocation rating. We believe AkzoNobel benefits from intangible assets and switching costs that are derived from its decorative coatings and performance coatings businesses. The decorative coatings business sells paints for architectural projects to the do-it-yourself and professional painter end markets, while the performance coatings business sells specialty coatings to a wide array of industrial end markets.

AkzoNobel is the world’s third-largest producer of paints and coatings, operating with a substantial footprint across multiple continents. Its products are sold to a wide variety of end markets, including architectural, automotive, packaging, marine, and aerospace. Europe/Middle East/Africa represents the largest region for the company, accounting for almost half of sales. While AkzoNobel is one of the most diversified paint and coatings producers, it has somewhat focused its portfolio in recent years, exemplified by the sale of its specialty chemical business. Additionally, Akzo announced a portfolio review in 2024, which could include additional divestments or strategic alternatives for some of its noncore assets.