Solvay SA

SOLB

Equity

ISIN BE0003470755 / Valor 446673

Euronext - Euronext Brussels (2025-10-20)

EUR 28.12+0.72%

Solvay SA
UMushroom community rating:

0.00 0 votes No rating yet

NegativeNeutralPositive

About company

Solvay SA is a prominent global chemical company, established in 1863, known for its innovative contributions to the chemical industry, particularly in the development of the soda ash process. With a workforce of over 9,000 employees, Solvay operates across various sectors, providing essential chemical solutions that address critical global needs. The company is involved in producing materials and chemicals that enhance air and water quality, improve food preservation, and contribute to health and well-being. Solvay also focuses on developing eco-friendly products, such as sustainable clothing materials and more efficient automotive tires. In 2023, Solvay reported net sales of €4.9 billion and is publicly traded on Euronext Brussels and Paris under the ticker SOLB. The company is committed to leveraging its expertise in chemistry to drive innovation and sustainability in its operations and product offerings.

Summarized from source with an LLMView SourceSector: Industrials

Net Sales

Underlying net sales for Q2 2025 were €1,102 million, down 3.8% organically year-on-year. The decline was driven by a soft market environment influenced by ongoing tariff and geopolitical tensions, particularly affecting soda ash and Coatis end-markets.

EBITDA Performance

Underlying EBITDA decreased to €230 million in Q2 2025, representing a 12.4% organic decline compared to Q2 2024. Despite this reduction, the EBITDA margin remained robust at 20.9%, supported by a one-off gain of approximately €20 million from a contract termination in the Special Chem business unit.

Cost Savings Initiatives

Solvay SA achieved €29 million in structural cost savings during Q2 2025, contributing to a cumulative total of €55 million for the year. Since the beginning of 2024, the company has realized €165 million in cost reductions, highlighting its ongoing commitment to operational efficiency.

Net Profit

The underlying net profit from continuing operations was €99 million in Q2 2025, down from €116 million in the same quarter last year. This decrease reflects the broader challenges in the market and the impact of reduced demand.

Free Cash Flow

Free Cash Flow for Q2 2025 amounted to €54 million, bringing the first half FCF to €97 million. The company remains focused on disciplined cash generation despite a 54.8% decline in quarterly free cash flow.

Debt and Leverage

Underlying net debt stood at €1.9 billion at the end of Q2 2025, resulting in a leverage ratio of 1.9x. This increase was primarily due to dividend payments and new leases related to recent investments.

2025 Outlook

Solvay SA has updated its 2025 outlook, now expecting underlying EBITDA to be between €880 million and €930 million. The company confirms its Free Cash Flow guidance of around €300 million and maintains a maximum Capex of €300 million, emphasizing a focus on cash generation and disciplined investments amidst ongoing market uncertainties.

Summarized from source with an LLMView Source

Key figures

-28.5%1Y

59.1%3Y

84.4%5Y

Performance

29.5%1Y

30.2%3Y

30.0%5Y

Volatility