Arkema S.A.

Arkema reported Q1 2026 revenue of EUR 2.2 billion, down 8.4% year on year, with a negative 5.1% currency effect and a 3% price decline; volumes were broadly stable. Q1 EBITDA was EUR 283 million, with roughly EUR 20 million of negative FX impact. By segment, EBITDA was EUR 89 million for Adhesive Solutions, EUR 139 million for Advanced Materials, EUR 51 million for Coating Solutions, and EUR 33 million for Primary Materials. Adjusted net income was EUR 65 million, or EUR 0.86 per share; recurring EBIT was EUR 118 million and the REBIT margin was 5.4%. Recurring cash flow was minus EUR 95 million, working capital ratio was 16.3%, capex was EUR 75 million, net debt and hybrid bonds were EUR 3.3 billion, and net debt/last-12-month EBITDA was 2.8x. Management confirmed full-year 2026 guidance for slight EBITDA growth at constant exchange rates and reiterated EUR 600 million of capex for the year. For Q2, management said EBITDA should be comparable to Q2 2025 and noted improving momentum in Advanced Materials, aided by HPP, as well as pricing actions to offset raw material, energy, and logistics inflation.

Thierry Le Hénaff framed the quarter as resilient in a difficult setting, with soft demand in Europe and the U.S. but solid momentum in Asia and strong March improvement. He emphasized Arkema’s diversified portfolio and said the Middle East conflict should be roughly neutral overall for the group, though it creates both costs and some supply-demand support in places. He also highlighted continued execution on growth projects, especially PVDF, HPP, and Rilsan Clear, and pointed to Arkema’s 20-year transformation into a more profitable specialty materials company.

Marie-José Donsion said Q1 revenue fell to EUR 2.2 billion, down 8.4% year on year, mainly because of a 5.1% FX headwind and a 3% price decline, while volumes were broadly stable. She detailed EBITDA of EUR 283 million, adjusted net income of EUR 65 million, recurring EBIT of EUR 118 million, and nonrecurring items of EUR 45 million, including EUR 34 million of PPA depreciation and EUR 11 million of one-off charges. On cash, she cited recurring cash flow of minus EUR 95 million, working capital at 16.3% of annualized sales, capex of EUR 75 million, and net debt and hybrid bonds of EUR 3.3 billion, with leverage at 2.8x; she also said the EUR 600 million full-year capex target remains intact.

Analysts focused on how Middle East disruption might change the mix between upstream and downstream businesses, whether March strength reflected prebuying, and how management sees Advanced Materials mix and the new China PVDF investment. Management said the portfolio is balanced and that Q2 should see acrylics improve on tighter supply-demand conditions, while Advanced Materials should improve sequentially as HPP ramps and Performance Additives faces more pressure from sulfur-related cost inflation. On PVDF, Thierry Le Hénaff said Arkema remains comfortable investing because PVDF has long been a growth and profitability engine, especially in high-end applications like semiconductors, batteries, and cables. He also said March may have included some prebuying, but April was continuing in line with March, supporting the view that Q2 EBITDA should be comparable to last year.