Solvay (SOLB) Q2 2026 earnings summary

Executive summary

• Q2 2026 underlying net sales were €1,031 million, down 7.4% organically year-over-year, mainly due to weak soda ash pricing and the Middle East conflict disrupting operations.

• Underlying EBITDA fell 19.5% organically to €187 million, with margin at 18.1%, impacted by the Middle East conflict and absence of a €20 million one-off gain from Q2 2025.

• Bicarbonate and electronic-grade peroxides performed well, while soda ash export markets faced persistent pricing pressure; Coatis showed sequential improvement.

• Transformation and cost-saving initiatives delivered tangible safety improvements and €26 million in structural cost savings in Q2 2026.

• Free cash flow for H1 2026 was €15 million, with Q2 at €-11 million; capex for H1 reached €141 million.

Financial highlights

• Q2 2026 underlying net sales: €1,031 million (-7.4% organic yoy); EBITDA: €187 million (-19.5% organic yoy); EBITDA margin: 18.1%.

• H1 2026 underlying net sales: €2,028 million (-8.0% organic yoy); EBITDA: €406 million (-14.7% organic yoy); net profit: €139 million (-29.2% yoy).

• Free cash flow to shareholders in H1 2026 was €15 million; Q2 2026 was -€11 million due to seasonality and concentrated cash outflows.

• Capex for H1 2026 was €141 million, focused on HSE, maintenance, and energy transition projects.

• Net debt stood at €1.8 billion at end of June 2026, leverage ratio at 2.3x, temporarily higher due to dividend payment.

Outlook and guidance

• Full-year 2026 guidance confirmed: underlying EBITDA expected between €770 million and €850 million, including €20 million negative currency impact and €40 million transformation expenses.

• Free cash flow to shareholders expected to be at least €200 million (net of €90 million transformation expenses), with capex around €300 million.

• Guidance assumes the Saudi peroxides plant restarts before end of Q3 2026.

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

• Temporary transformation expenses will continue to impact free cash flow through 2027.