Toronto, Ontario — AkzoNobel reported lower third-quarter profit after booking a €300 million ($450 million) legal charge, but the coatings giant’s core operations remained steady thanks to strong pricing and tight cost control.
The Dutch-based manufacturer, whose products include Sikkens and Lesonal refinish coatings sold in Canada, said adjusted EBITDA—a measure of earnings before interest, taxes, depreciation and amortization—fell slightly to €385 million ($578 million) from €392 million ($589 million) a year earlier. That figure reflects performance before one-time costs, offering a clearer view of how the business itself is performing. Operating income dropped to €85 million ($127 million) due to the legal provision related to the Ichthys LNG project in Australia.
The provision stems from a long-running dispute over protective coatings supplied for the Ichthys liquefied natural gas facility near Darwin. AkzoNobel has been involved in litigation concerning the performance of coatings used on the project, which was completed in 2018. The company said the provision reflects its current estimate of potential liability, though the matter remains before the courts.
Chief executive Greg Poux-Guillaume said the company had “a resilient third quarter, with profitability up to 15.1 percent on disciplined pricing and continued benefits from our SG&A and industrial excellence programs.” SG&A refers to selling, general and administrative expenses—corporate and overhead costs that companies seek to trim without affecting production.
Overall revenue slipped five percent to €2.55 billion ($3.83 billion) as the strong euro reduced the value of sales made in other currencies. Still, organic sales—meaning sales growth after adjusting for acquisitions, divestments and currency swings—rose one percent on the back of firmer prices and better product mix.
The performance coatings segment, which supplies refinish, marine, protective and industrial coatings, saw a two percent organic increase. Margins improved to 15.3 percent as lower material costs and industrial-excellence programs—internal efficiency drives designed to reduce waste and energy use—helped offset weaker demand in some end-markets. Decorative Paints, which covers consumer and trade brands, slipped slightly as European housing activity softened but gained in Latin America.
Poux-Guillaume said that despite “continued macro-economic softness and the translation effect of a strong euro,” the company “delivered on consensus” and is “progressing on our strategic roadmap as our teams continue to execute with agility and focus.”
He added that “the sale of Akzo Nobel India Ltd. is on track to close in December 2025 as all regulatory approvals have been granted,” describing it as part of a strategy “of unlocking value and positioning the company for more profitable growth.”
Poux-Guillaume said the company expects adjusted EBITDA for the full year to be around €1.48 billion ($2.22 billion), reaffirming guidance and medium-term goals of a 16 percent-plus margin and 16-to-19 percent return on investment.
