Akzo Nobel stock falls after Q4 results miss estimates

Published 29/01/2025, 11:42
© Reuters.

Investing.com -- Shares of Akzo Nobel (OTC:AKZOY) (EURONEXT:AKZA) dropped 5% today following the company’s fourth-quarter earnings report, which revealed an adjusted EBITDA slightly below consensus estimates and higher net debt than expected.

The paint and coatings company reported a 2.6% increase in adjusted EBITDA year-over-year (YoY) to €321 million, which was -0.7% below Visible Alpha consensus and slightly below company consensus of €323 million.

The company’s performance coatings exceeded expectations, while its decorative segment showed weaker results. Free cash flow (FCF) for the quarter came in at €284 million, falling short of the €374 million consensus.

Akzo Nobel’s net debt increased to €3,901 million, surpassing the Bloomberg consensus of €3,794 million. Adjusted earnings per share (EPS) for the third quarter were reported at €0.56, significantly lower than the Visible Alpha consensus of €0.79 per share.

Looking ahead, Akzo Nobel provided fiscal year 2025 guidance that aligns with analyst expectations, projecting an EBITDA greater than €1.55 billion compared to the Visible Alpha consensus of €1.58 billion. This forecast is based on anticipated flat to low single-digit volume growth.

Morgan Stanley (NYSE:MS) commented on the results, stating, "An in-line set of numbers and an FY25 guide that should help to clear the air around FY25 cons expectations."

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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