Arkema (AKE) Q2 2024 earnings summary

Executive summary

• Q2 2024 sales reached €2.54 billion, up 3.8% year-over-year, with volumes rising 4.7% and a negative 2.4% price effect due to lower raw material prices.

• EBITDA increased 8.2% to €451 million, with a margin of 17.8%, reflecting strong performance in adhesives, high performance polymers, fluorogases, and downstream coating solutions.

• Adjusted net income was €214 million (€2.87/share), up 3.4% year-over-year.

• Strategic progress included the acquisition of Dow's flexible packaging adhesives, investments in EV battery technologies, and ramp-up of the Singapore polyamide 11 plant.

• Continued focus on sustainability, with new biodiversity commitments and expanded ISCC+ certification for coating sites.

Financial highlights

• Q2 2024 sales: €2,536 million (+3.8% YoY); EBITDA: €451 million (+8.2% YoY); EBITDA margin: 17.8%.

• Recurring EBIT at €302 million (+6% YoY); adjusted net income at €214 million (€2.87/share).

• Recurring cash flow for Q2 was €132 million, with €170 million in capex and net debt at €3,270 million (net debt/EBITDA: 2.2x).

• Free cash flow was €117 million, including a €15 million non-recurring outflow for Singapore platform start-up costs.

• Working capital ratio: 15.7% of annualized sales at end-June 2024.

Outlook and guidance

• Full-year 2024 EBITDA guidance tightened to €1.53–1.63 billion (vs. €1.5 billion in 2023), with major projects expected to contribute €60 million to EBITDA for the year.

• Q3 2024 EBITDA expected to be slightly up year-over-year, including a €15 million impact from German plant flooding.

• H2 to benefit from ramp-up of organic projects and continued PM contribution.

• Strategic focus remains on organic growth, M&A integration, and innovation for sustainable solutions.