UK's Synthomer H1 revenue rises, upgrades 2026 outlook
UK's Synthomer H1 revenue rises, upgrades 2026 outlook
Overview
UK speciality polymers supplier's H1 revenue rose 6.7% yr/yr, driven by growth in all divisions
Adjusted EPS turned positive from a loss a year ago, reflecting improved profitability
Company upgraded FY 2026 outlook, citing strategic progress, higher margins and cost savings
Outlook
Synthomer upgrades FY 2026 outlook to slightly ahead of market expectations
Company expects FY 2026 free cash flow before non-recourse receivables finance movements to be positive
Synthomer sees year-end 2026 covenant net debt:EBITDA at 4.0-4.35x, excluding further divestments
Result Drivers
STRATEGIC INITIATIVES - Co said underlying earnings growth was mainly driven by strategic growth initiatives, innovation, and a shift toward higher-margin speciality products
COST SAVINGS - Synthomer attributed margin improvement to ongoing cost and efficiency measures across divisions
COMPETITOR DISRUPTION - Temporary volume gains in Health & Protection were linked to supply chain disruptions at competitors, which are not expected to recur in H2
Company press release: ID:nRSD0891Pa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| GBP 954.30 mln |
|
H1 Adjusted EPS | Beat | GBP 0.22 | GBP 0.05 (1 Analyst) |
H1 Adjusted Pretax Profit | Beat | GBP 12.70 mln | GBP 11 mln (1 Analyst) |
H1 Adjusted EBIT |
| GBP 48.60 mln |
|
H1 EBIT |
| GBP 12.20 mln |
|
H1 EBITDA |
| GBP 96.70 mln |
|
H1 Free Cash Flow |
| -GBP 80.80 mln |
|
H1 Loss Per Basic Share |
| GBP 0.03 |
|
H1 Pretax Loss |
| GBP 25.50 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the specialty chemicals peer group is "buy"
Wall Street's median 12-month price target for Synthomer PLC is GBp101.00, about 13.5% above its August 3 closing price of GBp89.00
The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 59 three months ago
Reuters Recommended Reads
Aug 4 - Germany's Evonik Q2 revenue up 11% on higher volumes and prices
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Aug 3 - Germany's Beiersdorf H1 sales fall, trims FY outlook
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)