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 and key growth markets like batteries and fluorospecialties showed dynamic growth.

• Recurring cash flow was €464 million, well above guidance, strengthening the balance sheet.

• Major projects in the US and Asia ramped up, contributing €60 million additional EBITDA and expanding capacity in PVDF and polyimide.

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

• Dividend stability maintained, with €3.60 per share proposed.

Financial highlights

• Group sales were €9,068 million, down 5% year-over-year, impacted by negative currency and volume effects.

• EBITDA fell 18.3% to €1,251 million; margin declined to 13.8%.

• Adjusted net income was €328 million (€4.34 per share); net income Group share was €63 million.

• Free cash flow reached €390 million, with a strong cash conversion rate of 88%.

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

Outlook and guidance

• 2026 outlook expects slight EBITDA growth at constant currencies, with major projects adding €50 million EBITDA.

• CapEx will be reduced to around €600 million, focusing on targeted, high-return projects.

• Plans to offset fixed cost inflation and streamline organization, with a 3% annual headcount reduction over three years.

• Working capital is expected to remain flat unless there is a demand rebound.