Akzo Nobel has been pioneering a world of possibilities to bring surfaces to life for well over 200 years. As experts in making coatings, there's a good chance you're only ever a few meters away from one of our products. The company's world-class portfolio of brands – including Dulux, International, Sikkens, and Interpon – is trusted by customers around the globe and is active in more than 150 countries with sights set on becoming the global industry leader.
Akzo Nobel positions itself as the most sustainable paints company, which has been inventing the future for more than two centuries. The Dutch multinational operates across multiple business segments, serving both consumer and industrial markets with innovative coating solutions that protect and enhance surfaces worldwide.
Akzo Nobel's market cap as of October 16, 2024, stands at $11.68 billion, reflecting its position as a major player in the global coatings industry. For the full year 2024, the company reported revenue of €10.7 billion, remaining flat compared to FY 2023.
The company described 2024 as "a year of solid organic growth for AkzoNobel as we demonstrated our ability to grow in mixed market conditions. We faced a complex operating environment, with continued inflationary pressure, adverse currency impacts, and unstable markets. Although these headwinds spurred competitive intensity and tested our resilience, they also strengthened our determination to control our own destiny by stepping up self-help measures that ultimately boosted our performance."
The company grew organically while increasing adjusted EBITDA, demonstrating the ability to grow in mixed market conditions. In Q4, adjusted EBITDA increased by 3%, with costs at constant currencies now in line with the previous year.
The company reported a slight increase in organic sales and stable revenue growth but faced challenges with reduced operating income primarily due to restructuring costs. Adjusted EBITDA showed a modest increase, reflecting improved efficiency in operations.
The Decorative Paints segment represents a significant portion of Akzo Nobel's business, serving both professional and consumer markets. The segment posted 986 million euros in revenue, with volumes in Europe remaining below 2019 levels, though the market had bottomed out in mid-2023 and rebounded in the fourth quarter.
The Performance Coatings division focuses on industrial applications, serving automotive, aerospace, marine, and protective coating markets. The company achieved volume growth in both Paints and Coatings segments, with organic sales up 2% driven by volume growth in both divisions.
A major solar energy plant – the company's largest in Europe – has been installed at the Pilawa site in Poland, further powering the company's efforts to transition all production locations to renewable electricity. Covering nearly three hectares (around the size of four football pitches), there are 3,551 solar panels, with an installed capacity of 1.9 MWp, providing nearly a quarter of the decorative paints facility's electricity needs.
All manufacturing locations in Latin America are now operating on 100% renewable electricity, further boosting the company's ambition to reduce carbon emissions across the full value chain by 50% by 2030 (baseline 2018). The milestone follows on from similar achievements in North America (early 2023) and Europe (early 2022).
The company has opened a new €26 million manufacturing plant in Faisalabad – the company's largest investment in Pakistan to date. The 25-acre site, which has facilities for making decorative paint, wood finishes, automotive and specialty coatings, coil coatings, and protective coatings, will help to meet increasing customer demand across a variety of markets.
Looking ahead, the company doesn't expect a significant market rebound in 2025, but the self-help measures being taken will increasingly contribute to the bottom line. Based on current market conditions and constant currencies, AkzoNobel expects to deliver 2025 adjusted EBITDA above €1.55 billion.
For the mid-term, AkzoNobel aims to expand profitability to deliver an adjusted EBITDA margin of above 16% and a return on investment between 16% and 19%, underpinned by organic growth and industrial excellence. The company targets leverage below 2.5 times net debt/adjusted EBITDA (below 2.9 times net debt/EBITDA) by the end of 2025 and around 2 times in the mid-term, while remaining committed to retaining a strong investment grade credit rating.
Despite a decrease in net cash from operating activities, Akzo Nobel maintained a stable dividend payout and aims to enhance profitability while maintaining a strong investment grade credit rating, with expectations of improved adjusted EBITDA in 2025.
The company's diversified portfolio, global presence, and commitment to sustainability position it well for long-term growth, though near-term performance remains subject to market conditions and the success of ongoing restructuring efforts.
