Chemicals firm Syensqo beats core profit estimates in first quarter (updated)
15/05/2026 06:12
Fixes hyperlink in paragraph 9. Q1 EBITDA falls 13.1% organically but beats analyst forecasts 2026 capex target lowered to 450 million euros Shares surge 9.5% by 0703 GMT, tracking best day since December 2023 listing By Dimitri Rhodes May 15 (Reuters) - Belgian chemicals maker Syensqo SYENS.BR reported a first-quarter core profit above market expectations on Friday, supported by its cost-savings programme and strong performance in the materials segment. Its shares opened nearly 10% higher and could see their best-ever trading day if the gains hold. Analysts from Bernstein cited a "decent quality beat" driven by better than expected margins across Syensqo's main units. Syensqo's underlying earnings before interest, taxes, depreciation and amortisation dropped 13.1% organically to 251 million euros ($292 million), but beat analysts' average forecast of 239 million euros. It had spun off from Solvay SOLB.BR as a pure speciality chemicals player in 2023 and has been seen by analysts and investors as a growth company, but its most recent profit guidance and earnings trajectory have tested this perception. "While we delivered on our outlook for Q1, it is clear that, relative to our potential, our performance is not where it needs to be," Syensqo's new CEO Mike Radossich told journalists. The company had cut its full-year adjusted EBITDA guidance to 1.1 billion euros in February, as continued economic uncertainty impacted its main markets. It reiterated that target on Friday. "We recognize that our performance has not met the expectations that were set at the time of the spin-off," Radossich said, though he noted those goals were set in a very different macroeconomic environment. "Since then, we have seen weaker demand, we've seen persistently high inflation, and the broader geopolitical uncertainty impacts all of our markets," he said. RESTRUCTURING SYENSQO Syensqo sped up its restructuring measures last year due to heightened demand uncertainty, targeting 200 million euros in savings by the end of 2026. As part of that, it completed the sale of its oil and gas division last month. "Over the last three months, we have quickly moved from what I would call diagnosis to action," Radossich said. The first quarter was likely the worst this year in terms of core earnings, he added. The company adjusted its 2026 capital spending target to 450 million euros, having previously guided for less than 500 million. ($1 = 0.8590 euros) Syensqo shares have lost around 40% since listing in December 2023 https://www.reuters.com/graphics/SYENSQO-RESULTS/gkvlkeorgpb/chart.png Syensqo core earnings and margin have dropped steadily since its spinoff https://www.reuters.com/graphics/SYENSQO-RESULTS/mopaorgekpa/chart.png (Reporting by Dimitri Rhodes in Gdansk, editing by Milla Nissi-Prussak) ((Dimitri.Rhodes@thomsonreuters.com))