# HEMPEL A/S

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/fi/companies/hempel).

## Overview

HEMPEL A/S is a Denmark-based coatings company that develops, manufactures and sells protective coatings, marine coatings and decorative paint systems. Its products are used to protect and finish assets in marine, energy, infrastructure and building applications through a global network of operating companies and manufacturing sites.

## Products & services

• Marine coatings for ships and offshore assets
• Protective coatings for industrial infrastructure
• Decorative paints and surface finishes
• Energy & infrastructure coating solutions
• Foul-release and performance coating systems

- **Marine Coatings** (35%) — Coatings for ship hulls, cargo vessels and marine maintenance applications.
- **Protective Coatings** (30%) — Industrial coatings that protect steel and concrete structures from corrosion and wear.
- **Decorative Paints** (20%) — Architectural paints and finishes for residential and commercial buildings.
- **Energy & Infrastructure Coatings** (15%) — High-performance coatings for energy, transport and infrastructure assets.

- Marine coatings for ships and offshore assets
- Protective coatings for industrial infrastructure
- Decorative paints and surface finishes
- Energy & infrastructure coating solutions
- Foul-release and performance coating systems

## Customers

Hempel sells to shipowners, shipyards, offshore operators and marine maintenance customers that need coatings to reduce corrosion, fouling and downtime. It also serves industrial asset owners, infrastructure contractors and distributors in architectural markets that buy coatings for protection, durability and appearance. The customer base is tied to large installed assets and recurring repainting or maintenance cycles.

- **Marine customers** (primary) — Shipowners, operators and shipyards buying hull and maintenance coatings for performance and compliance.
- **Industrial and infrastructure customers** (primary) — Owners and contractors buying protective systems for steel, concrete and energy assets.
- **Decorative and architectural customers** (secondary) — Retail, trade and distribution customers buying paints and finishes for buildings.
- **Offshore and energy customers** (secondary) — Customers buying specialist coatings for harsh environments and long-life asset protection.

- Shipowners and fleet operators buying hull and maintenance coatings
- Shipyards specifying coatings for newbuild and repair work
- Industrial asset owners needing corrosion protection
- Infrastructure and energy customers requiring durable coating systems
- Decorative paint customers buying through retail and distribution channels

## Geography

Hempel is headquartered in Denmark and operates through a global footprint of factories, R&D centres and sales companies. The annual report notes that 33% of its locations are in areas identified as high risk for flooding, which makes site resilience and continuity planning important parts of the operating model. Its business is therefore geographically diversified but exposed to climate, logistics and regulatory conditions across the countries where it manufactures and sells coatings.

- Headquartered in Denmark with global operating sites
- Manufacturing and R&D footprint supports local supply and formulation
- 33% of locations are in high flood-risk areas
- Global sales exposure increases logistics and regulatory complexity
- Climate and site resilience matter for factory continuity

## Strategy

Hempel’s strategy centres on growing commercial business units through market share gains, product performance and value-based pricing. The report highlights priorities around higher sales prices, higher volumes, and continued launch of sustainable coating solutions, especially in marine and energy & infrastructure end markets. It is also building resilience in operations and supply chain risk management through climate adaptation, emergency preparedness and business continuity measures.

- **Increase market share in core coating businesses** (medium-term) — Scale and installed-base relevance support recurring demand and customer retention.
- **Expand sustainable product offerings** (medium-term) — Customers and regulators increasingly favor lower-emission and recyclable solutions.
- **Improve operational resilience** (short-term) — Climate and weather risks can disrupt production, R&D and supply continuity.

- Grow share through stronger product performance and commercial execution
- Use value-based pricing to improve realization per project
- Expand sustainable coating solutions for marine and energy uses
- Strengthen site protection and continuity planning against climate risk
- Align product development with recycling and lower-emission needs

## Risks

Hempel faces exposure to climate-related physical risk, regulatory change and hazardous-material handling because its business depends on manufacturing sites, R&D centres and chemical formulations. It also faces standard coatings-industry risks such as raw material volatility, customer project timing, competitive pricing pressure and execution risk in global supply chains.

- **Climate-related physical damage to sites** [high] — A significant share of locations sit in flood-risk areas and weather events can interrupt production.
- **Regulatory change tied to decarbonisation and chemicals** [high] — New environmental rules can require reformulation or process changes for current products.
- **Raw material and supply chain volatility** [medium] — Coatings depend on petrochemical and specialty inputs that can move quickly in price or availability.
- **Hazardous materials and environmental compliance** [medium] — Coatings operations involve VOCs, waste and handling requirements that increase compliance burden.

- Flooding and extreme weather can disrupt factories and R&D sites
- Climate regulation may affect product formulas and manufacturing methods
- Raw material and logistics volatility can pressure supply reliability
- Hazardous materials and emissions create compliance and liability risk
- Competition and pricing pressure can affect share in key coatings markets

## Accounting

Hempel’s results depend on judgments around provisions, derivatives and foreign exchange hedging, especially given its multinational footprint and commodity-linked input costs. The report also highlights transaction costs, asset reclassifications and discontinued-operation effects, while long-lived assets and site-related investments create impairment and capitalisation judgments.

- **Derivatives and hedging** — Reported finance income/expense and OCI can fluctuate with market rates
- **Provisions and environmental liabilities** — Affects operating expenses and balance sheet reserves
- **Impairment of long-lived assets** — Can create non-cash write-downs and affect segment profitability
- **Discontinued operations and transaction costs** — Distorts trend analysis if not adjusted

- Derivative hedge accounting affects reported gains and losses on swaps
- Foreign exchange translation impacts multinational earnings and equity
- Provision estimates matter for environmental and legal obligations
- Impairment testing is relevant for factories, R&D and acquired assets
- Discontinued operations can change comparability across periods

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*Last updated: 2026-10-24T15:34:53.743095+00:00*