Synthomer (SYNT) Trading Update summary

Trading performance and financial highlights

• Q1 2025 EBITDA and margin exceeded Q1 2024, driven by self-help initiatives and improved product/geographical mix.

• Adhesive Solutions and Health & Protection divisions saw margin and EBITDA growth; Coatings & Construction faced softer US demand but benefited from European construction.

• Robust pricing maintained, aided by lower energy and raw material costs.

• New specialty investments in the USA and Middle East are immediately profit and cash accretive.

• Continued focus on cash generation, deleveraging, and progressing divestment of non-core European businesses.

Strategic and operational updates

• 'In region for region' manufacturing strategy provides resilience against tariffs and protectionist trends.

• Health & Protection customers in Malaysia positioned to benefit from tariff changes versus China-based competitors.

• Ongoing cost and cash self-help programs and strategic transformation to enhance profitability.

• No change to guidance for further earnings progress and positive free cash flow in 2025, despite increased end-market uncertainty.

• Resource allocation remains focused on key global growth opportunities.

Market and macroeconomic context

• End-market demand uncertainty heightened by geopolitical tensions, especially in the USA (25% of revenues).

• Specialty solutions strategy and innovation centers support growth in sectors driven by global megatrends.

• 20% of sales volumes from new and patent-protected products; sustainability and decarbonization remain priorities.

• 2030 decarbonization targets approved by Science Based Targets initiative; Green Economy Mark held since 2021.

• Interim results scheduled for 5 August 2025.