AkzoNobel Cuts Profit Forecast Due to Strong Euro and Ongoing Tariff Uncertainty

AkzoNobel has cut its 2025 profit forecast due to the stronger euro and ongoing tariff uncertainty. The paintmaker now expects adjusted earnings before interest, taxes, depreciation, and amortization to be above €1.48 billion, down from a previous forecast of more than €1.55 billion. Revenue for the second quarter fell 6% YoY to €2.63 billion, citing lower paint volumes and sluggish demand, particularly in China.

Dutch paint and coatings manufacturer Akzo Nobel has revised its 2025 profit forecast downward, citing ongoing market uncertainties and the impact of a stronger euro. The company now expects adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to be above €1.48 billion, a reduction from its previous forecast of more than €1.55 billion [1].

The second-quarter (Q2) 2025 revenue for Akzo Nobel decreased by 6% year-over-year (YoY) to €2.63 billion, reflecting lower paint volumes and sluggish demand, particularly in China. The company's adjusted EBITDA for the quarter was €393 million, including a €24 million adverse currency impact, compared to €400 million in the same period last year. The adjusted EBITDA margin expanded to 15.0%, up from 14.4% in the previous year, driven by efficiency actions [2].

The company's outlook for the full year 2025 remains subject to market uncertainties and adjusted for exchange rates as of the end of the first half. Akzo Nobel expects to deliver adjusted EBITDA above €1.48 billion for the year. Additionally, the company aims to expand profitability, targeting an adjusted EBITDA margin of above 16% and a return on investment between 16% and 19% by the end of 2025 [2].

Akzo Nobel's CEO, Greg Poux-Guillaume, commented on the company's performance, stating that the profitability increase in Q2 was driven by pricing discipline and structural benefits from efficiency programs, despite significant currency headwinds. The company has also signed a binding agreement to sell its India operations to the JSW Group, expected to close in the fourth quarter of 2025 [2].

References:
[1] https://www.marketscreener.com/news/akzo-nobel-lowers-earnings-forecast-citing-market-uncertainties-ce7c5cdcdc89f625
[2] https://www.marketscreener.com/news/akzo-nobel-n-akzonobel-s-q2-profitability-up-60-bps-to-15-on-strong-efficiency-actions-ce7c5cdcdd80f320