Solvay (SOLB) Q2 2025 earnings summary

Executive summary

• Q2 2025 saw continued soft market conditions and demand reductions due to global tariff discussions, FX volatility, and geopolitical tensions, especially impacting Soda Ash and Coatis, but EBITDA margin and free cash flow remained resilient.

• Safety culture transformation and operational efficiency remain top priorities, with a decrease in high-potential incidents and improved reportable injury rates.

• Rare earths business in France is seeing increased customer interest due to Chinese export controls, though capacity is currently limited.

• Structural cost savings initiatives delivered €29 million in Q2, totaling €55 million year-to-date and €165 million since 2024.

• Free cash flow to shareholders from continuing operations was €54 million in Q2 and €97 million for H1 2025.

Financial highlights

• Q2 2025 underlying net sales were €1.1 billion, down 7.8% year-over-year (3.8% organically); underlying EBITDA was €230 million, down 15.4% year-over-year (12.4% organically), with a margin of 20.9%.

• H1 2025 net sales were €2,223 million, down 7.2% year-over-year; H1 2025 EBITDA was €480 million, down 10.8%.

• Underlying net profit from continuing operations was €99 million in Q2 2025, down 15% year-over-year; basic EPS was €0.93.

• Net financial debt increased to €1,856 million, with a leverage ratio of 1.9x.

• Free cash flow for H1 2025 reached €97 million, in line with seasonal trends.

Outlook and guidance

• 2025 underlying EBITDA is guided between €880 million and €930 million, assuming current FX rates.

• Free cash flow guidance for 2025 is confirmed at around €300 million, with a capex ceiling of €300 million.

• Cost savings are now expected to exceed €200 million by year-end 2025.

• Market conditions are expected to remain challenging in H2 2025 due to low visibility and ongoing demand softness.

• Essential capex to remain at the low end of €250–300 million due to soft demand.