Solvay reported adjusted EBITDA for the first quarter of €219 million, effectively matching consensus expectations of €220 million. The company maintained its full-year underlying EBITDA guidance range of €770 million to €850 million, against a consensus view of €814 million, and reconfirmed targets for free cash flow and capital spending.
Group revenue for the quarter reached €997 million, below the consensus estimate of €1.04 billion. On an organic basis, sales declined by 8.5% as a combination of a 3.3% fall in volumes and a 5.2% reduction in pricing more than offset a positive currency contribution of 2.6%.
Division performance
The Basic Chemicals division delivered adjusted EBITDA of €129 million, short of the €150 million consensus. Sales for the division totaled €610 million, down 6.7% on an organic basis.
- Soda Ash & Derivatives: Sales of €397 million, down 7.2% organically. The company cited lower pricing in domestic markets and a more pronounced decline in the seaborne market as drivers of the weakness.
- Peroxides: Sales of €213 million, down 5.8% organically. Volumes fell, reflecting reduced demand for HPPO and other intermediates.
In contrast, the Performance Chemicals division outperformed expectations, producing adjusted EBITDA of €84 million versus a consensus of €62 million. Sales in this segment were €387 million, down 11.3% organically.
- Silica: €129 million in sales, a 7% organic decline driven by lower tire volumes.
- Coatis: €115 million in sales, down 16% organically.
- Special Chemicals: €142 million in sales, down 11% organically.
Cash flow and balance sheet
Operating cash flow for the quarter was €94 million, versus €116 million in the same period a year earlier. Free cash flow to shareholders from continuing operations amounted to €26 million, down from €42 million in the prior-year quarter. Net financial debt stood at €1.7 billion, corresponding to a debt-to-EBITDA ratio of 2 times.
Guidance and capital allocation
Management reconfirmed its full-year underlying EBITDA guidance range of €770 million to €850 million and maintained a free cash flow target of at least €200 million. Maximum capital expenditure guidance remains capped at €300 million.
Overall, the quarter combined a near-consensus group EBITDA outcome with mixed divisional dynamics: Basic Chemicals underdelivered against estimates while Performance Chemicals provided a stronger-than-expected contribution. Sales weakness across the group was led by volume declines and negative pricing, only partly offset by favorable currency movements.