Arkema stock jumps after mixed Q2 results despite lowered guidance

Published 31/07/2025, 09:30
Arkema stock jumps after mixed Q2 results despite lowered guidance

Investing.com -- Arkema (EPA:AKE) stock rises 1.5% after the specialty chemicals company reported second-quarter results that showed mixed performance across its business segments, despite lowering its full-year outlook.

The French chemical manufacturer posted second-quarter sales of €2,395 million, slightly below analyst estimates of €2,403 million, representing an organic decline of 3.8%. The decrease was attributed to lower volumes (-1.3%) and reduced pricing (-2.5%), with currency effects further impacting sales by -3.3%.

Adjusted EBITDA came in at €364 million, 1% above consensus expectations but still down 19% compared to the same period last year. EBITDA margins contracted by 260 basis points year-over-year, reflecting ongoing challenges in the operating environment.

The company’s Advanced Materials segment was a bright spot, with adjusted EBITDA of €177 million exceeding analyst estimates of €173 million. This segment saw organic sales growth of 3.3%, driven by a 5.7% increase in volumes, though prices declined by 2.4%.

In contrast, the Coating Solutions segment underperformed with adjusted EBITDA of €53 million, below consensus expectations of €62 million. This division experienced a 9.7% organic sales decline, with volumes down 6.6% and prices falling 3.1%.

Arkema has revised its full-year EBITDA guidance downward to €1.3-1.4 billion from its previous outlook of "at least equal to last year’s at constant exchange rate." The company also reduced its cash flow forecast to €300-400 million from nearly €600 million previously.

Despite these challenges, the company maintained a solid financial position with second-quarter operating cash flow of €262 million and free cash flow of €91 million. Net debt stood at €3,580 million, representing a debt-to-EBITDA ratio of 2.5x.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.