Finance
Dulux Maker AkzoNobel Beats Q1 Profit Estimates
Published by Global Banking & Finance Review®
Posted on April 22, 2026
3 min readLast updated: April 22, 2026
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AkzoNobel posted Q1 2026 adjusted EBITDA of €345 million, beating the analysts’ consensus of €323 million despite a 3 % year‑on‑year decline, supported by stronger pricing and cost‑saving measures.
AkzoNobel's price hikes help drive profits, to offset Iran war effects
AkzoNobel Reports Strong First-Quarter Performance Amid Geopolitical Tensions
By Dimitri Rhodes
April 22 (Reuters) - Dulux paint maker AkzoNobel reported a 7% jump in its first-quarter core profit on Wednesday, excluding activities of its recently sold India unit, carried by higher pricing and cost savings.
Business Model and Pricing Power
AkzoNobel sells branded products ranging from decorative paints to speciality coatings used on cargo ships and Formula 1 cars. This allows it to pass on price increases to customers more successfully than its commodity chemical counterparts.
Impact of Raw Material Costs
"Our raw material basket is going to go up by something like the high teens (percentage), given the disruption of the Strait of Hormuz," a full effect of which will be seen in the next two quarters, CEO Greg Poux-Guillaume told Reuters.
Financial Outlook and Market Reaction
The Dutch group, which had trimmed its outlook in February, stood by its 2026 core profit target of at least 1.47 billion euros, saying the impact from the Middle East conflict would be covered by its previously announced price hikes.
Its shares rose around 4% in early trading, as analysts from J.P. Morgan said the market was likely to welcome the outlook confirmation.
Analyst Perspectives
"There will likely still be some skepticism around the FY26 guidance that it doesn’t seem to be assuming any demand destruction from higher inflation, but this will likely be as much of a headwind for most others in the sector," the analysts wrote in a note to investors.
First-Quarter Earnings Details
AkzoNobel's adjusted earnings before interest, taxes, depreciation and amortisation were 345 million euros ($405 million) in the first quarter, corresponding to a margin of 14.5%. Analysts polled by it were expecting 323 million euros on average.
Portfolio Adjustments and Strategic Moves
Redeveloping the Portfolio in Asia
REDECORATING THE PORTFOLIO
AkzoNobel has been trimming its portfolio throughout Asia since 2025, including the sales of its units in India and Pakistan for $1.6 billion and 50 million euros, respectively.
"We continue to evaluate our positions in Southeast Asia, and that process is ongoing," finance chief Maarten de Vries said.
Planned Merger with Axalta Coating Systems
The group is also planning to merge with U.S. paint maker Axalta Coating Systems to create a combined company worth $25 billion.
Additional Information
($1 = 0.8517 euros)
(Reporting by Dimitri Rhodes in Gdansk, editing by Milla Nissi-Prussak)
Key Takeaways
- •AkzoNobel’s Q1 2026 adjusted EBITDA of €345 million surpassed the €323 million mean analyst estimate, reflecting better-than-expected performance. (akzonobel.com)
- •The 3 % drop in core profit (from €357 million to €345 million YoY) was cushioned by effective pricing strategies and operational cost efficiencies. (akzonobel.com)
- •The company continues to be insulated from macro‑economic pressures such as tariffs via its ‘local‑for‑local’ sourcing and procurement de-risking approach, providing stability in volatile markets. (akzonobel.com)
References
Frequently Asked Questions about Dulux maker AkzoNobel beats Q1 profit estimates
1What was AkzoNobel’s Q1 2024 adjusted EBITDA?
AkzoNobel reported an adjusted EBITDA of 345 million euros for the first quarter of 2024.
2How did AkzoNobel’s Q1 earnings compare to analyst expectations?
AkzoNobel beat expectations with Q1 EBITDA of 345 million euros, higher than analysts' consensus of 323 million euros.
3What factors contributed to AkzoNobel’s better-than-expected Q1 performance?
Better pricing and cost savings helped AkzoNobel outperform market profit estimates for Q1.
4How did AkzoNobel’s Q1 profit compare to the previous year?
AkzoNobel’s Q1 core profit dropped 3% compared to a year ago, from 357 million euros to 345 million euros.
5What is the euro to dollar conversion rate stated in the article?
The article states that $1 is equivalent to 0.8517 euros.
