Solvay (SOLB) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales rose 3.9% organically year-over-year to €1,156 million, driven by higher volumes despite lower prices, with stable underlying EBITDA at €259 million and a margin of 22.4% as cost savings offset negative pricing.

• Free cash flow to shareholders reached €74 million in Q3 and €320 million for the first nine months, with CapEx ramping up to €84 million.

• Interim dividend of €0.97 per share was approved, payable January 2025.

• Major sustainability milestones achieved at the Green River site, including a new emissions control process and coal phase-out, reducing company-wide greenhouse gas emissions by up to 8%.

• Safety performance included a reportable injury rate (RIIR) of 0.27 and one fatality in August, prompting renewed safety initiatives.

Financial highlights

• Q3 2024 net sales: €1,156 million (+3.2% yoy); underlying EBITDA: €259 million (22.4% margin, down 3.2pp yoy); underlying net profit: €108 million.

• Free cash flow to shareholders from continuing operations was €320 million year-to-date.

• Net financial debt stood at €1.5 billion as of September 30, 2024, with a leverage ratio of 1.5x.

• ROCE reached 17.3% in Q3 2024.

• Cost savings initiatives delivered €77 million in the first nine months, exceeding targets.

Outlook and guidance

• Full-year 2024 underlying EBITDA expected at the high end of the -10% to -15% organic growth range (€975–1,040 million).

• Free cash flow for 2024 projected to exceed €300 million; CapEx guidance set at €300–350 million.

• Cost savings target of €150 million by end-2025 and €300 million by 2028 reaffirmed, with accelerated delivery in 2024.

• Trends from the first nine months expected to continue into Q4, with some seasonality.