Arkema (AKE) Q2 2025 earnings summary

Executive summary

• Q2 2025 sales declined 5.6% year-over-year to €2,395 million, with persistent weak demand in Europe and the US, but growth in Asia and select sectors like batteries, sports, and 3D printing.

• EBITDA for Q2 2025 was €364 million, margin at 15.2%, showing resilience in High Performance Polymers and Adhesive Solutions, but sharp declines in Coating Solutions and Intermediates.

• Adjusted net income was €118 million (€1.56/share), down 44.9% year-over-year; recurring cash flow was €111 million.

• Net debt and hybrid bonds rose to €3,580 million at end-June 2025, with leverage at 2.5x LTM EBITDA.

• 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; EBITDA fell 19.3% to €364 million, margin at 15.2%.

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

• Recurring operating income (REBIT) was €198 million, margin at 8.3%.

• Recurring cash flow reached €111 million; free cash flow for Q2 was €91 million.

• Net debt and hybrid bonds at €3,580 million; working capital at 17.0% of annualized sales.

Outlook and guidance

• 2025 EBITDA guidance set at €1.3–1.4 billion, including a €50 million FX headwind; recurring cash flow expected between €300–400 million.

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

• Additional EBITDA from major projects expected to reach €50 million in 2025 versus 2024, reaffirming €400 million+ target by 2028.

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

• Continued focus on innovation and sustainable solutions despite macroeconomic and geopolitical headwinds.