Solvay reported second quarter adjusted EBITDA of €187 million, a result that came in 2% below Jefferies' projection and 2% above the consensus estimate. The company confirmed its full-year 2026 outlook.
Top-line and organic trends
Group sales for the quarter were €1,031 million, underperforming both the Jefferies forecast of €1,047 million and the consensus of €1,046 million. On an organic basis, sales fell 7.4%. The organic decline was attributable to a 5.3% reduction in volumes and a 2.2% decrease in pricing.
Division-level performance
The Basic Chemicals division produced adjusted EBITDA of €134 million, beating Jefferies' estimate of €110 million by 22% and topping consensus of €128 million by 5%. Division sales were €622 million, down 7.2% organically.
Within Basic Chemicals, Soda Ash sales declined to €404 million from €441 million in the second quarter of 2025, an 8.4% organic drop. The company reported marginal pricing declines in domestic Soda Ash markets and more pronounced price weakness in seaborne markets. Peroxides sales were €218 million, down 4.9% organically, with the decline influenced by an operational suspension at a HPPO site in Saudi Arabia.
Performance Chemicals delivered adjusted EBITDA of €78 million, a result 19% below Jefferies' estimate and 8% below consensus. Sales in this division reached €409 million, down 7.6% on an organic basis.
Special Chemicals saw sales decline to €148 million from €181 million in the prior-year quarter, a 17.6% organic drop. The reduction was driven primarily by a non-recurring €20 million one-off termination recorded in the second quarter of 2025.
Cash flow and balance sheet
Free cash flow to shareholders was negative €11 million in the second quarter, compared with positive €54 million in the same period last year. Net financial debt stood at €1,829 million, equivalent to a leverage ratio of 2.3 times net debt to EBITDA.
Guidance and cost savings
Solvay confirmed full-year 2026 targets: EBITDA of €770 million to €850 million, free cash flow above €200 million, and capital expenditure of approximately €300 million. The company expects cumulative cost savings to reach about €300 million by year-end 2026, with €288 million already achieved since 2024.
Summary of implications
- Reported EBITDA slightly missed one broker forecast while exceeding consensus, reflecting mixed analyst expectations.
- Sales weakness was broad-based across divisions and driven by lower volumes and pricing, with specific headwinds in seaborne Soda Ash markets and an operational suspension affecting Peroxides.
- Cash flow swung negative year-over-year and the company continues to carry net financial debt equivalent to 2.3 times EBITDA.