Arkema has reported a steady first quarter for 2026, holding volumes flat year-on-year despite uneven regional demand and a challenging macroeconomic backdrop.
The French chemicals group said overall volumes were stable versus last year, underpinned by growth in its Specialty Materials divisions and a rebound in March after a slow start to the year. Asia remained a bright spot, while demand in Europe and the United States stayed subdued.
Growth was particularly strong in key high-value markets, with “superior YoY growth of ~15% in key attractive markets namely batteries, sports, 3D printing and healthcare,” reinforcing the company’s shift toward higher-margin specialty segments.
Earnings reflected mixed conditions. EBITDA came in at €283 million, down from €329 million a year earlier, hit by an unfavorable currency impact of around €20 million. However, performance improved sequentially, rising 14% versus Q4 2025, with margins holding at 13.0%.
Operationally, the business saw resilience in Coating Solutions and a slight increase in Primary Materials, while Adhesive Solutions improved sharply from the previous quarter.
Advanced Materials, however, started the year weakly, with expectations of a stronger Q2 driven by High Performance Polymers.
Cost discipline remained a key lever, with fixed costs stable year-on-year at constant exchange rates. The company also moved quickly on pricing actions from March onward to offset rising input costs linked to Middle East disruption.
Cash flow was negative €95 million, in line with seasonal patterns but improved versus last year due to better working capital management. The group maintained its full-year guidance, targeting slight EBITDA growth at constant currencies in 2026.
Chairman and CEO Thierry Le Hénaff highlighted both the resilience of the first quarter and the growing impact of geopolitical tensions.
“After a relatively weak January and February, first-quarter performance was eventually slightly better than expected, with the Group demonstrating solid resilience. This was notably supported by our development in key attractive markets, the continued growth in Asia as well as our sustained efforts to tightly manage fixed costs.
"The second-quarter environment is marked by the crisis in the Middle East, which is having significant repercussions across the entire supply chain, affecting raw materials, energy and logistics availability and costs.
"In this context, Arkema is reacting swiftly to adjust its pricing policy and work closely with suppliers and customers to address the situation. The Group will benefit from the regionalization of its manufacturing footprint over the past years, enabling it to serve its customers from their geography.
"In parallel, Arkema remains fully focused on the execution of its strategy towards specialties, which is expected to translate into an improved momentum in Adhesive Solutions and High Performance Polymers in the second quarter, benefiting from the completion of major growth projects over recent years.”
Looking ahead, Arkema warned it remains alert to potential supply chain and demand disruptions linked to the Middle East crisis, while continuing to push pricing adjustments, cost control, and investment in growth projects expected to add around €50 million in EBITDA in 2026.
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