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Solvay Q3 revenue falls on soda ash weakness

By Reuters News


Overview

  • Belgium chemicals group's Q3 revenue fell 3.3% organically amid Middle East conflict and soda ash weakness

  • Q3 underlying EBITDA dropped 26.6% organically, impacted by Middle East conflict and prior-year one-offs

  • Q3 free cash flow declined sharply from prior year


Outlook

  • Solvay expects 2026 underlying EBITDA between €720 mln and €740 mln

  • Company sees 2026 free cash flow at €120 mln to €150 mln, net of transformation expenses

  • Solvay expects 2026 capital expenditure below €300 mln


Result Drivers

  • MIDDLE EAST CONFLICT - Temporary shutdown of Peroxides plant in Jubail weighed on Q3 performance, per CEO

  • SODA ASH MARKET - Company cited continued weakness in soda ash market as a drag on Q3 sales

  • COST SAVINGS - Structural cost savings initiatives delivered €25 mln in Q3


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

EUR 1.03 bln

Q3 EBITDA

EUR 173 mln

Q3 EBITDA Margin

16.80%

Q3 Free Cash Flow

EUR 54 mln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 8 "hold" and 7 "sell" or "strong sell"

  • The average consensus recommendation for the diversified chemicals peer group is "buy."

  • Wall Street's median 12-month price target for Solvay SA is €24.50, about 4.4% above its November 3 closing price of €23.46

  • The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago


Reuters Recommended Reads

  • Nov 3 - Evonik expects end-year demand to drive strong start to 2027

  • Nov 3 - Switzerland's Clariant Q3 sales beat on higher prices, EBITDA misses on cost pressure

  • Nov 3 - German chemical sector mood slips in October after two-month recovery, Ifo says


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.)

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