AkzoNobel sees no let-up in tough market conditions, trims outlook

3rd Feb 2026 10:23

(Sharecast News) - Shares in AkzoNobel lost their sheen on Tuesday, after the Dulux paint maker warned that market conditions were set to remain challenging amid a fall in sales.

The Dutch paints and coatings specialist, which traces its history back to 1792, posted a 5% decline in revenues in the year to December end to €10.2bn. Organic sales were flat after an increase in the price/mix was offset by lower volumes.

Adjusted earnings before interest, tax, depreciation and amortisation were 2% lower, at €1.4bn, although the margin improved to 14.2% from 13.8% on the back of efficiency programmes.

Chief executive Greg Poux-Guillaume said markets had "largely gone backwards" during the year. Global paint makers have been hit by uncertain macroeconomic conditions weighing on demand, Donald Trump's tariff regime, cost inflation and currency fluctuations.

Looking to current trading, Poux-Guillaume warned: "Based on current market visibility, we don't anticipate a material recovery across our end markets in 2026.

"We expect a weak first half, with the second half helped by easier comparisons. Against this backdrop, our efficiency measures will continue to support our performance as we push towards our mid-term targets."

The company expects adjusted EBITDA to grow by €100m on a constant currency basis in 2026, to around €1.47bn. It had previously guided for 2026 earnings closer to €1.48bn.

As at 1015 GMT, the Amsterdam-listed stock had shed 7%.

AkzoNobel noted that its blockbuster merger with US rival Axalta was expected to close late in 2026 or early 2027, subject to shareholder and regulatory approvals. The two companies first announced the deal, which will create a combined business with an enterprise value of $25bn, in November.