Solvay (SOLB) Q1 2026 earnings summary

Executive summary

• Q1 2026 demonstrated resilience amid a challenging macro environment, with underlying net sales of €997 million and EBITDA of €219 million, both down year-over-year, but margins held steady at 21.9%, supported by €38 million from CO2 emission rights and a €7 million litigation gain.

• Structural cost savings initiatives delivered €22 million in Q1, with cumulative savings since 2024 reaching €233 million.

• Free cash flow was €26 million, in line with seasonality, with capex tightly controlled at €69 million.

• Safety and employee well-being remain top priorities, with reportable injury rates improving.

• Transformation and energy transition strategies are progressing, supporting competitiveness and sustainability.

Financial highlights

• Net sales declined 11.1% year-over-year to €997 million, with negative impacts from scope, forex, lower volumes, and lower prices.

• EBITDA fell 12.4% to €219 million, with a margin of 21.9%.

• Free cash flow to shareholders was €26 million; capex was €69 million.

• Net financial debt stood at €1.7 billion, with a leverage ratio of 2.0x.

• Profit attributable to shareholders was €76 million, down 22.7% year-over-year.

Outlook and guidance

• 2026 underlying EBITDA expected between €770 million and €850 million, including €20 million negative currency impact and €40 million transformation expenses.

• Free cash flow for 2026 expected to be at least €200 million, net of €90 million transformation expenses, with capex capped at €300 million.

• Cumulative structural cost savings targeted at €300 million by end of 2026.

• H2 expected to be stronger than H1, with improvements in stranded costs and business opportunities.