Syensqo raises profit outlook as materials business returns to growth (updated)
UPDATE 3-Syensqo raises profit outlook as materials business returns to growth Updates with share move and analyst comments in paragraphs 2, 6, context in paragraphs 7, 8, CEO comments in paragraphs 9 and 10. Adds chart showing materials unit sales growth.
By Dimitri Rhodes
July 30 (Reuters) - Belgian chemical maker Syensqo SYENS.BR raised its 2026 profit outlook on Thursday after second-quarter core earnings beat market expectations, as improving demand and order book in its materials business helped offset weakness elsewhere.
Shares in the company jumped 8.7% by 0858 GMT, on track for their best trading day ever if the gains hold, with J.P. Morgan analysts calling the report a "rarity" in the chemicals sector.
Underlying earnings before interest, taxes, depreciation and amortisation fell 6% organically to €311 million ($356 million) in the quarter, but exceeded the €292 million analysts' forecast compiled by Syensqo.
It also edged up its 2026 adjusted EBITDA guidance to at least €1.1 billion supported by a strong half-year performance and an improving order book, particularly in the materials unit.
The materials business, composed of composite materials and speciality polymers, posted its first year-on-year sales growth since the creation of Syensqo, CEO Mike Radossich told journalists.
Speciality polymers growing again was "key to rebuilding credibility", and the management delivered on that, Bernstein analysts said in a note.
Syensqo had already in May flagged good momentum driven by its cost-savings programme and a strong performance in the materials unit, which accounts for 73% of the group's EBITDA.
Syensqo 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, a perception that has recently been tested by its muted profit guidance for 2026 and broader economic uncertainty.
The company now aims to become a pure-play speciality materials and advanced technologies company, Radossich said during a press call.
He said the company was actively reviewing strategic options for its Performance and Care business area to maximize long-term shareholder value, but did not include a specific timeline for any actions.
($1 = 0.8731 euros)
(Reporting by Dimitri Rhodes in Gdansk; Editing by Matt Scuffham and Milla Nissi-Prussak)