Solvay expects tough market environment to weigh on volume recovery (updated)

Solvay SA

06/03/2025 06:48

Corrects paragraph 6 to say 2028 gross savings target was raised to 350 million euros from 300 million euros

March 6 (Reuters) - Belgian chemicals maker Solvay SOLB.BR forecast stable annual core profit on Thursday, in line with market expectations, and said macroeconomic and geopolitical concerns would weigh on volume recovery.

The company, whose products range from base chemicals such as soda ash to speciality polymers used in cars and airplanes, said it expected the trends seen in the latter part of 2024 to continue for at least the first half of 2025.

It forecast earnings before interest, taxes, depreciation and amortisation (EBITDA) of between 1.0 billion and 1.1 billion euros ($1.08 billion and $1.19 billion) in 2025, compared to the 1.05 billion it made in 2024.

Analysts polled by Vara Research had forecast an EBITDA of 1.05 billion euros for 2025.

Solvay expects its cost savings to reach 200 million euros by the year end, from 110 million euros at the end of 2024, offsetting both inflation and the finalisation of the separation with Syensqo SYENS.BR.

It has been cutting costs due to soft demand and the volatile business environment, and on Thursday raised its target for gross savings annual run-rate to 350 million euros in 2028, from 300 million euros previously.

The company also confirmed its 2028 EBITDA guidance for a mid-single-digit percent annual growth rate and proposed a gross dividend of 2.43 euros per share for 2024.

($1 = 0.9256 euros)

 (Reporting by Dimitri Rhodes and Olivier Cherfan in Gdansk; editing by Milla Nissi)

 ((Dimitri.Rhodes@thomsonreuters.com; olivier.cherfan@thomsonreuters.com))