Arkema (AKE) Q2 2024 earnings summary

Executive summary

• Q2 2024 sales reached €2,536 million, up 3.8% year-over-year, with volumes rising 4.7% and a negative 2.4% price effect due to lower raw material prices.

• EBITDA increased 8.2% to €451 million, with a margin of 17.8%, reflecting strong performance in adhesives, high performance polymers, fluorogases, and downstream coating solutions.

• All segments recorded EBITDA growth, led by adhesives (+14.7%), and Bostik exceeded a 15% EBITDA margin for the first time in a semester.

• Strategic progress included the acquisition of Dow's flexible packaging adhesives, investments in EV battery technologies, and expanded sustainability initiatives.

• Net debt stood at €3,270 million (2.2x LTM EBITDA), reflecting dividend payments, M&A, and capex.

Financial highlights

• Q2 2024 sales: €2,536 million (+3.8% YoY); EBITDA: €451 million (+8.2% YoY); EBITDA margin: 17.8% (+70 bps YoY).

• Adjusted net income: €214 million (€2.87/share), up 3.4% year-over-year.

• Recurring EBIT reached €302 million, up 6% year-over-year, with a margin of 11.9%.

• Free cash flow was €117 million in Q2 2024, reflecting usual seasonality and higher capex.

• Working capital ratio at 15.7% of annualized sales at end-June 2024.

Outlook and guidance

• Full-year 2024 EBITDA guidance tightened to €1.53–1.63 billion (vs. €1.5 billion in 2023), with major projects expected to contribute €60 million to EBITDA for the year.

• Q3 2024 EBITDA expected slightly above last year, including a €15 million impact from German plant flooding.

• H2 to benefit from ramp-up of organic projects and continued contribution from PM.

• Strategic focus remains on organic growth, M&A synergies, and innovation for sustainable solutions.