Syensqo (SYENS) Q1 2026 earnings summary

Executive summary

• Net sales reached €1.4 billion in Q1 2026, up 5% sequentially but down 7% year-over-year, with growth led by Specialty Polymers and Novecare; volumes were stable year-over-year.

• Underlying EBITDA was €251 million (17.9% margin), up 6% sequentially but down 13–17% year-over-year.

• Gross margin was 31.7%, up 260 bps sequentially but down 110 bps year-over-year.

• Operating cash flow was €82 million, impacted by working capital, project costs, and separation expenses.

• The Oil & Gas business divestment was completed in January, generating €130 million in net proceeds and a €35 million gain after taxes.

Financial highlights

• Net sales declined 7% year-over-year but rose 5% sequentially; underlying EBITDA margin was 17.9%.

• Gross profit was €444 million, gross margin 31.7%, down 10% year-over-year but up 15% sequentially.

• Operating cash flow was €82 million; full-year guidance is €700 million.

• CapEx for Q1 was €97 million, down 44% year-over-year; full-year CapEx guidance reduced to €450 million.

• Net debt at €1,952 million, leverage ratio 1.7x, gearing ratio 24%; €500 million bond redeemed.

Outlook and guidance

• Full-year 2026 underlying EBITDA expected at approximately €1.1 billion; operating cash flow at €700 million.

• Capital expenditure guidance reduced to €450 million for 2026.

• Q1 expected to be the lowest EBITDA quarter, with sequential improvement and gradual volume recovery anticipated for the rest of the year.

• Second quarter will include a €165 million cash outflow for the 2025 dividend payment.

• Impact from Middle East conflict expected to be limited, with mitigation actions in place.