Solvay cuts 2026 forecast after Middle East conflict hits third quarter (updated)
UPDATE 1-Solvay cuts 2026 forecast after Middle East conflict hits third quarter Adds consensus in paragraph 2 and bullets
Oct 19 (Reuters) - Solvay SOLB.BR cut its 2026 forecast after the Middle East conflict and a peroxide plant shutdown at Sadara in Saudi Arabia hit third-quarter earnings.
The chemicals group now sees full-year EBITDA of €720 million to €740 million, slightly below the company-compiled consensus of €775 million, and free cash flow of between €120 million and €150 million.
• Solvay previously forecast 2026 underlying EBITDA of €770 million to €850 million and free cash flow of at least €200 million
• The group posted preliminary third-quarter underlying EBITDA of €173 million, missing consensus by 7%, and sales in line at €1.03 billion
• It said the Middle East conflict reduced quarterly underlying EBITDA by about €25 million, including nearly €15 million linked to the shutdown of the peroxide plant at the Sadara complex in Saudi Arabia
• Solvay said it was pursuing options to limit the shutdown's financial impact, citing joint-venture contractual provisions that could allow it to recover lost profit
($1 = 0.8921 euros)
(Reporting by Olivier Cherfan in Gdansk; Editing by Anil D'Silva and Shreya Biswas)