By Andrea Figueras

Shares in AkzoNobel jumped after the Dutch paints company reported first-quarter earnings that beat expectations and confirmed its guidance for the year.

The stock was up 6.8% at 55.22 euros in European morning trading. However, since the start of the year, shares have dropped 4.7%.

AkzoNobel posted adjusted earnings before interest, taxes, depreciation and amortization of 357 million euros ($407.7 million) for the first three months of the year, down 2% from the prior-year period, but ahead of a company-compiled estimate of 345 million euros.

Quarterly revenue dropped 1% to 2.61 billion euros while net profit fell to 107 million euros from 181 million euros.

The company confirmed its target of adjusted Ebitda above 1.55 billion euros this year, subject to market uncertainties and assuming constant currencies.

"While macro-economic volatility has been fueled by U.S. tariffs, our local-for-local and procurement de-risking strategic principles continue to largely shield us from direct impacts on our cost base or our ability to deliver," Chief Executive Greg Poux-Guillaume said.

However, the CEO noted that the company could be hit by weaker customer demand as economic growth slows during the global trade dispute.

The company provided an analysis on the potential impact of tariffs, assuming 145% on U.S. imports from China, 125% on U.S. exports to China and 10% between the U.S. and the Rest-of-World region.

The estimated full-year impact after mitigation measures would be of around 35 million euros at the Ebitda level or roughly 2% of 2025 Ebitda.

For the midterm, the company still aims to expand profitability to deliver an adjusted Ebitda margin of above 16% and a return on investment between 16% and 19%.

Write to Andrea Figueras at andrea.figueras@wsj.com

(END) Dow Jones Newswires

April 23, 2025 05:07 ET (09:07 GMT)

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