S&P 500 eases slightly from fresh record high after stronger economic growth
Investing.com -- Syensqo on Thursday reported second-quarter adjusted EBITDA of €335 million, exceeding analyst expectations despite lowering its full-year guidance due to currency and tariff impacts.
The chemical company’s Q2 earnings surpassed Jefferies estimates of €321 million by 4% and consensus forecasts of €327 million by 2%. This represents an improvement from the first quarter’s €311 million EBITDA.
Despite the quarterly beat, Syensqo reduced its full-year EBITDA guidance to approximately €1.3 billion, down from its previous target of over €1.4 billion, citing foreign exchange and tariff pressures.
The company also cut its free cash flow target to €350 million from around €400 million, even as it lowered its capital expenditure forecast to below €600 million.
Group sales reached €1,586 million, falling 3% short of both Jefferies and consensus estimates of around €1,634 million. Organic sales declined 4%, with volumes down 3% and prices dropping 1%, while currency effects caused an additional 3% decrease.
The Materials division posted adjusted EBITDA of €269 million, exceeding estimates, though sales fell to €908 million with a 5% organic decline.
Specialty Polymer sales reached €620 million but decreased 6% organically, driven by lower volumes in Electronics and reduced pricing in Automotive. Composite materials sales totaled €288 million, down 3% organically due to declines in civil aerospace and automotive sectors.
Performance & Care division reported adjusted EBITDA of €98 million with sales of €511 million, showing a modest 1% organic growth. Within this segment, Novecare sales grew 4% organically to €347 million, while Technology Solutions sales fell 5% to €164 million.
Other Solutions division recorded adjusted EBITDA of €8 million on sales of €168 million, representing a 7% organic decline. This included Aroma Performance sales of €76 million (down 6% organically) and Oil & Gas sales of €92 million (down 7% organically).
The company’s second-quarter operating cash flow was €20 million, down from €43 million in the same period last year.
Free cash flow to shareholders was negative €67 million, compared to negative €120 million in Q2 2024. Underlying net debt stood at €2.2 billion, representing a leverage ratio of 1.7x.
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