Arkema (AKE) Q4 2025 earnings summary

Executive summary

• EBITDA reached €1,251 million (13.8% margin), within guidance, despite weak demand in Europe and the US, while Asia, especially China, remained dynamic and key growth markets like batteries, sports, 3D printing, healthcare, and fluorospecialties grew 16% year-over-year.

• Specialty Materials showed resilience, but results were impacted by cyclical downturns in acrylics and a decline in old-generation refrigerants.

• Strict cost control and innovation led to recurring cash flow of €464 million, well above guidance, strengthening the balance sheet.

• Dividend proposed at €3.60 per share, maintaining stability and representing about 70% of 2025 free cash flow.

• New segmentation will be implemented in 2026 to better reflect business dynamics, separating resilient Specialty Materials from more cyclical Primary Materials.

Financial highlights

• Group sales were €9,068 million, down 5% year-on-year, impacted by a negative 2.9% currency effect and a 1.6% volume decline.

• EBITDA fell 18.3% to €1,251 million, with a €40 million negative currency effect and a margin of 13.8%.

• Adjusted net income was €328 million (€4.34 per share), down 46.8% year-on-year.

• Free cash flow increased to €390 million, with a working capital ratio of 12.5% of sales.

• Net debt and hybrid bonds stood at €3,170 million, with a net debt/EBITDA ratio of 2.5x.

Outlook and guidance

• For 2026, slight EBITDA growth is targeted at constant FX, with major projects expected to contribute an additional €50 million in EBITDA.

• CapEx will be managed around €600 million, focusing on high-return projects and cost discipline.

• Organization streamlining is planned, with a 3% annual headcount reduction over three years.