Akzo Nobel NV

The global automotive powder coatings market is projected to grow from USD 2.78 billion in 2026 to USD 3.59 billion by 2031, at a CAGR of 5.22% during the forecast period. Growth is driven by increasing vehicle production, rising demand for durable and high-quality surface protection, and growing adoption of low-VOC and environmentally friendly coating technologies. Increasing EV production is also creating new opportunities for powder coatings in battery systems and automotive components. Asia Pacific dominated the market in 2025, accounting for 56.2% of the market, supported by large-scale vehicle manufacturing and established automotive supply chains. Passenger cars accounted for 77.6% of the market in 2025, and thermoset is projected to register the fastest growth among resin types.

Axalta Coating Systems reported record adjusted EBITDA of $305 million and a multi-year high margin of 22.7% for the second quarter of 2026, driven by cost discipline and favorable mix. The Refinish segment grew 6% with 1,900 net new body shops added in the first half, while Mobility achieved record quarterly net sales of $474 million. The company maintained its full-year 2026 guidance and expects third-quarter adjusted EBITDA between $295 million and $305 million. A shareholder vote on the pending merger of equals with AkzoNobel is set for August 5, 2026, with closing targeted for late 2026 or early 2027, and management projects approximately $600 million in annual run-rate cost synergies from the deal.

AkzoNobel and Axalta have announced enhancements to the proposed governance arrangements for their combined company following their pending merger of equals. The changes include annual re-election of all directors after an initial three-year period, instead of the previously contemplated five-year period, and a two-thirds approval threshold for non-executive directors during the initial three years, down from 75%, for matters such as director appointments and dismissals, CEO and CFO appointments and removals, designation of chair and vice chair titles, and amendments to the remuneration policy. The companies stated that these refinements resulted from extensive engagement with shareholders and other stakeholders. The governance enhancements do not require changes to the proposed articles of association, and the extraordinary general meeting and special general meeting planned for August 5, 2026 will proceed as scheduled with existing agenda items unaffected.

Akzo Nobel reported second-quarter profit attributable to shareholders rose to 139 million euros from 124 million euros a year earlier, with earnings per share of 0.81 euros compared to 0.72 euros. Adjusted EBITDA increased to 398 million euros from 393 million euros, while revenue slipped to 2.59 billion euros from 2.63 billion euros. The company said it remains on track to achieve its full-year targets and expects to deliver 100 million euros of adjusted EBITDA improvement in constant currencies. CEO Greg Poux-Guillaume also noted that the merger with Axalta is progressing as planned, with a shareholder vote on August 5 and an expected closing at the end of 2026 or early 2027.

The Europe architectural coatings market is projected to grow from USD 20.93 billion in 2026 to USD 25.49 billion by 2031, at a compound annual growth rate of 4.0%. Growth is driven by extensive renovation and refurbishment activities, rising demand for energy-efficient and environmentally friendly coatings, and strong contributions from Germany. The façade segment, particularly External Thermal Insulation Composite Systems, is expected to lead the market, while professional applications dominate the end-use sector. Key players include AkzoNobel, PPG Industries, and The Sherwin-Williams Company.