Solvay reports 2Q25 results in line with pre-release

Investing.com -- Solvay SA (BR:EBR:SOLB) on Wednesday reported second-quarter 2025 adjusted EBITDA of €230 million, in line with its pre-release figures, which included a one-off revenue gain of approximately €20 million in Special Chemicals.

The chemical company’s full-year 2025 guidance remained unchanged at €880-930 million for adjusted EBITDA, with free cash flow from continued operations to shareholders expected at approximately €300 million, capital expenditure at €300 million, and a working capital inflow of around €100 million.

Group sales for the quarter reached €1,102 million, representing an organic decline of 3.8%, with volumes down 2.0% (3.9% excluding one-offs) and prices down 1.6%. Scope and foreign exchange effects contributed a negative 4.1%.

The Basic Chemicals segment posted adjusted EBITDA of €141 million, 9% below analyst estimates and 15% below consensus, with margins declining 630 basis points year-over-year. Sales in this segment were €667 million, down 3.5% organically.

Soda Ash sales came in at €441 million, showing weakness due to sluggish demand in domestic markets and increased competition in seaborne markets. Peroxides sales reached €226 million, with stable volumes as strength in mining and water end-markets offset low chemical demand.

The Performance Chemicals segment delivered adjusted EBITDA of €104 million, exceeding analyst expectations, with margins improving by 310 basis points. Sales for this segment were €434 million, down 4.3% organically.

Silica sales totaled €134 million, showing a slight volume decrease in the tire market compared to a strong second quarter in 2024. Coatis sales fell to €119 million, with volumes down in both polyamide chain and solvents end markets due to renewed competition from Asia.

Special Chemicals sales were €181 million, with lower volumes in rare earth autocatalysis offset by the one-off revenue from a customer’s contract termination.

Solvay reported second-quarter 2025 IFRS operating cash flow of €114 million, down from €153 million in the same period last year. Underlying free cash flow to shareholders was €54 million, compared to €120 million in the second quarter of 2024.

The company’s net financial debt stood at €1,856 million, representing a net debt to EBITDA ratio of 1.9x.

Solvay also noted that cost savings are now expected to exceed the initial €200 million target, with €55 million of incremental savings delivered in the first half of 2025.

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