Synthomer (SYNT) Q4 2025 TU earnings summary

Executive summary

• Revenue for 2025 expected at approximately £1.74bn, down from £1.93bn in 2024, with EBITDA in the range of £135-138m, aligning with market expectations.

• Positive free cash flow delivered for the year, with a cash inflow in the second half and year-end net debt expected at around £575m.

• Strategic focus on operational execution, cost reduction, and portfolio transformation towards higher-margin speciality solutions.

Financial highlights

• EBITDA margin increased despite lower revenue, driven by cost reductions and capital reallocation.

• Net debt:EBITDA ratio at 4.7-4.8x, well within the covenant requirement of less than 5.25x.

• £50m receivables arrangement with the largest shareholder supported cash management.

Outlook and guidance

• Year-on-year progress expected in 2026, driven by ongoing cost programs, product investments, and volume improvements in Health & Protection.

• Anticipated margin progress in speciality businesses, partially offset by wage inflation and normalisation of bonus accrual.

• Commitment to doubling recent earnings levels in the medium term through self-help, market recovery, and strategic delivery.