Solvay (SOLB) Q1 2026 earnings summary

Executive summary

• Q1 2026 demonstrated resilience amid a challenging macro environment, with underlying net sales of €997 million and EBITDA of €219 million, reflecting organic declines of up to 11.1% and 12.4% year-over-year, respectively, supported by €38 million from CO2 rights and a €7 million litigation gain.

• EBITDA margin held steady at 21.9%, with free cash flow of €26 million and capex of €69 million, in line with seasonality.

• Structural cost savings initiatives delivered €22 million in Q1 2026, with cumulative savings since 2024 reaching €233 million.

• Safety and employee well-being, especially in the Middle East, remain top priorities, with reportable injury rates improving.

• Transformation and energy transition strategies are progressing, supporting competitiveness and cash generation.

Financial highlights

• Net sales declined up to 11.1% year-over-year to €997 million, impacted by lower volumes, pricing, and forex headwinds.

• EBITDA fell up to 12.4% year-over-year to €219 million, with margin at 21.9%.

• Free cash flow to shareholders was €26 million, supported by disciplined capex and working capital management.

• Net financial debt stood at €1.7 billion, with a leverage ratio of 2.0x.

• Profit attributable to shareholders was €76 million, down 22.7% year-over-year; basic EPS from continuing operations was €0.73.

Outlook and guidance

• 2026 underlying EBITDA expected between €770 million and €850 million, including €20 million negative currency impact and €40 million transformation expenses.

• Free cash flow to shareholders from continuing operations expected to be at least €200 million, net of €90 million transformation expenses, with capex capped at €300 million.

• Cumulative structural cost savings targeted at €300 million by end of 2026.

• H2 2026 expected to be stronger than H1, with stranded costs decreasing and business opportunities materializing.