France's Arkema Q2 EBITDA rises
France's Arkema Q2 EBITDA rises
Overview
France specialty materials producer's Q2 sales rose 1.3% yr/yr, with organic growth of 3.2%
Q2 EBITDA up 7.4% yr/yr, margin improved to 16.1%
Company offset higher raw material costs with swift pricing actions and strict cost discipline
Outlook
Arkema sees FY’26 EBITDA slightly higher than last year at constant FX
Company expects around €50 mln additional EBITDA in 2026 from ramp-up of major projects
Arkema plans capital expenditure limited to €600 mln in 2026
Result Drivers
PRICING ACTIONS - Co said swift pricing adjustments helped offset sharp raw material cost inflation following the Middle East conflict
SEGMENT PERFORMANCE - Strong results in Adhesive Solutions and Coating Solutions, with Adhesives benefiting from industrial applications growth and Coatings recovering from last year’s level
KEY MARKETS - Continued growth in batteries, electronics and 3D printing contributed meaningfully to sales
Company press release: ID:nBw3qnhdTa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales |
| EUR 2.42 bln |
|
H1 Sales |
| EUR 4.61 bln |
|
H1 Adjusted EPS |
| EUR 2.56 |
|
H1 Adjusted Net Income |
| EUR 193.70 mln |
|
H1 EBITDA |
| EUR 673.50 mln |
|
H1 EBITDA Margin |
| 14.60% |
|
H1 Net Debt |
| EUR 3.60 bln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 8 "hold" and 3 "sell" or "strong sell"
The average consensus recommendation for the specialty chemicals peer group is "buy."
Wall Street's median 12-month price target for Arkema SA is €63.00, about 8.5% above its July 29 closing price of €58.05
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago
Reuters Recommended Reads
July 28 - UK chemicals maker Croda beats interim profit market view on solid demand, price hikes
July 29 - Germany's BASF Q2 net income surges on coatings sale
July 29 - Belgium's Solvay Q2 revenue falls on weak soda ash pricing
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)