Solvay sees slightly lower 2026 earnings after in-line quarterly result (updated)

Solvay SA

24/02/2026 06:27

Adds shares and analyst comment in paragraph 2, CEO comments and context on U.S. tariffs in paragraphs 4-7.

Q4 EBITDA meets expectations in soft market

2026 EBITDA seen at 770-850 million euros, versus 881 million last year

CEO says US tariff change adds uncertainty, could positively affect Brazil biz

Shares rise around 5% on solid cash flow, broadly in-line outlook

By Olivier Cherfan

Feb 24 (Reuters) - Solvay SOLB.BR expects a slight dip in 2026 earnings, excluding any positive tariff effect on its Brazil business, after the chemical maker's fourth-quarter core profit met analysts' expectations in a persistently soft market.

Shares of the Belgian group rose around 5% in early Tuesday trading. J.P. Morgan analysts said the outlook was close to expectations while quarterly cash flow of 137 million euros ($162 million) was a strong beat.

Solvay sees 2026 underlying earnings before interest, taxes, depreciation and amortisation of 770-850 million euros, at least 30 million less than last year. In the fourth quarter, underlying EBITDA fell around 34% to 169 million euros.

Solvay, which produces a range of essential chemicals from soda ash to peroxides used in high-purity electronics, said it was too early to assess the impact of U.S. President Donald Trump's new tariffs, after the U.S. Supreme Court struck down most of his previous levies.

"It creates a little bit of additional uncertainties, so we will monitor this extremely carefully," CEO Philippe Kehren said during a press call.

The Trump administration imposed on Tuesday a temporary 10% surcharge on most U.S. imports, potentially raising costs for Solvay's U.S.-bound shipments while supporting locally made chemicals.

"It could be ... positive for our business in Brazil, which has been very much impacted by the 50% tariffs implemented by U.S., not on us directly, but on some of our customers," Kehren said, though he added Solvay did not expect a major impact from the change.

The company expects at least 200 million euros of free cash flow and about 300 million euros in cumulative structural cost savings this year, though geopolitical and macroeconomic headwinds will continue to weigh on demand and pricing in some divisions.

It proposed a total dividend of 2.43 euros per share, subject to approval at the May shareholders' meeting, with a final payout of 1.46 euros per share expected on May 20.

($1 = 0.8483 euros)

(Reporting by Olivier Cherfan in Gdansk, editing by Milla Nissi-Prussak.)

((olivier.cherfan@thomsonreuters.com))