Arkema (AKE) Q2 2025 earnings summary

Executive summary

• Q2 2025 faced a challenging macroeconomic environment, with persistent weak demand in Europe and the US, but some growth in Asia and innovation-driven sectors like batteries and 3D printing.

• EBITDA was €364 million, down 19.3% year-over-year, with a margin of 15.2%, reflecting resilience in high-performance polymers and adhesives but sharp declines in coatings and intermediates.

• Adjusted net income was €118 million (€1.56/share), and recurring cash flow reached €111 million, both impacted by lower volumes and prices.

• Cost-cutting and strict working capital management helped offset inflation and maintain robust cash generation, with cost-saving targets doubled to €100 million for 2025.

• Major projects in innovative materials and key growth markets are ramping up, with new capacity coming online in the US, China, and Singapore.

Financial highlights

• Q2 2025 revenue was €2,395 million, down 5.6% year-over-year, with a negative 3.3% currency effect and 1.3% volume decline.

• EBITDA for the quarter was €364 million (down 19.3%), with a margin of 15.2%.

• Adjusted net income was €118 million, or €1.56 per share, down 44.9% year-over-year.

• Recurring cash flow reached €111 million; free cash flow was €91 million; working capital at 17% of annualized sales.

• Net debt including hybrid bonds stood at €3,580 million at end of June 2025, with leverage at 2.5x LTM EBITDA.

Outlook and guidance

• H2 2025 expected to continue with low demand, geopolitical uncertainty, and limited visibility on tariffs.

• 2025 EBITDA guidance set at €1.3–1.4 billion, including a €50 million FX headwind.

• Recurring cash flow for 2025 expected between €300–400 million.

• Cost savings target for 2025 raised to €100 million, double the previous annual target.

• Over €400 million EBITDA contribution from major projects expected by 2028, assuming macro recovery.