Synthomer (SYNT) H1 2026 earnings summary

Executive summary

• H1 2026 results exceeded expectations, with strong revenue and margin growth driven by strategic focus on specialty products, innovation, and cost discipline, supported by robust supply chains and all divisions contributing.

• Revenue grew 5.1% in constant currency to £954.3m, EBITDA up 13.4%, and EBIT up 36% year-over-year.

• Margin improvements achieved across all divisions, aided by product innovation, regional strategies, and cost savings.

• Divestment of Acrylate Monomers and three further non-core projects underway to enhance specialty focus and reduce net debt.

• Successful refinancing in April extended debt maturities to 2029, supporting a stable financial position.

Financial highlights

• Revenue: £954.3m (+5.1% constant currency, +6.7% reported), EBITDA: £96.7m (+13.4%), margin up 80bps to 10.1%.

• EBIT increased by 36% year-over-year; group PBT up £11.4m to £12.7m.

• Underlying EPS was 21.5p vs (3.6)p in H1 2025; statutory loss before tax improved to £25.5m.

• Net debt at £671.3m at June-end, with leverage at 4.9x, expected to reduce to 4–4.35x by year-end.

• Free cash flow for H1 was £(80.8)m, impacted by seasonal working capital and receivables unwind; positive FCF expected for FY 2026.

Outlook and guidance

• FY 2026 outlook upgraded to slightly ahead of market expectations, with recurring EBITDA progress expected in H2.

• Positive free cash flow expected for FY 2026 (excluding non-recourse receivables finance movements).

• Leverage targeted to fall to 4–4.35x by year-end, excluding further divestments.

• Medium-term targets: mid-single-digit % revenue growth, EBITDA margin mid-teens, ROIC 15%+, and net debt/EBITDA 1-2x.

• Continued focus on divestments, innovation, and cost actions to drive medium-term earnings growth.