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Investing.com -- Solvay (EBR:SOLB) shares plummeted nearly 7% on Thursday after the Belgian chemicals group cut its 2025 core profit guidance and flagged persistent uncertainty in key markets, citing pressure from U.S. President Donald Trump’s tariffs.
“As we navigate this period of global economic uncertainty, it’s of course very hard to predict what will happen with trade negotiations, currency fluctuations, or GDP evolution,” CEO Philippe Kehren told reporters.
The company now expects to reach the lower end of its previous adjusted EBITDA forecast range of 1.0 billion to 1.1 billion euros ($1.13 billion). Analysts surveyed by Vara Research had projected EBITDA of 1.04 billion euros for the year.
“What we see is that this uncertainty, in particular, is creating an impact on the demand,” Kehren added.
Solvay, which manufactures essential chemicals such as soda ash and peroxides used in electronics, also trimmed its capital expenditure forecast to 300 million euros, narrowing it from an earlier range of 300 to 350 million euros.
“There is not enough room in order to make new investments,” Kehren said.
Looking ahead, the company warned that second-quarter underlying EBITDA would decline sequentially due to higher temporary stranded costs following the end of its Transition Service Agreement with Syensqo.
“We don’t see yet any positive impact from the different measures that have been taken in some regions,” Kehren noted. “What we expect is that if this materializes, it won’t be most probably before the year-end that we will see the positive impacts.”
Solvay reported first-quarter 2025 adjusted EBITDA of €250 million, matching consensus estimates. The figure includes a one-off gain of approximately €10 million.
“We expect share price pressure,” Jefferies analysts said in a note.