Dutch paints maker Akzo Nobel reported an improved fourth-quarter adjusted EBITDA margin of 13%, up from 12.3% a year earlier. The company is navigating weak demand in the paints and coatings market. This performance comes as Akzo Nobel pursues a merger with U.S. rival Axalta Coating Systems, aiming to create a global coatings leader.

Akzo Nobel anticipates adjusted EBITDA to reach at least €1.47 billion by 2026, a €100 million improvement. Fourth-quarter revenue decreased 9% to €2.37 billion. However, operating income surged to €787 million, boosted by the sale of its Indian unit. The company is also targeting an adjusted EBITDA margin above 16% in the mid-term.

Looking ahead, Akzo Nobel anticipates continued market weakness in the first half of 2026 before seeing easier year-over-year comparisons in the second half. The proposed all-stock merger with Axalta is expected to close in late 2026 or early 2027, subject to regulatory approvals. The company's focus remains on profitability and shareholder returns.