Solvay has reported a resilient but softer start to 2026, with earnings and sales declining amid weaker volumes and pricing pressure, even as cost controls and portfolio optimization helped cushion the impact.

 

Underlying net sales fell to €997 million in Q1 2026, down 8.5% organically from a year earlier, reflecting broad-based softness across businesses—particularly in soda ash and Coatis, where pricing pressure weighed heavily.

 

Underlying EBITDA came in at €219 million, down 10.1% organically year-on-year, with margins holding relatively firm at 21.9%.

 

Performance was supported by a €7 million one-off gain from a litigation win in Performance Chemicals and roughly €38 million from CO2 portfolio optimization, which together offset transformation-related costs.

 

The company continued to push ahead with restructuring discipline. Structural cost savings delivered €22 million in the quarter, bringing cumulative savings since 2024 to €233 million—tracking in line with targets.

 

Net profit from continuing operations dropped to €78 million from €102 million a year earlier. Free cash flow stood at €26 million, reflecting seasonal patterns, while net debt edged up to €1.7 billion following dividend payments, resulting in a leverage ratio of 2.0x.

 

CEO Philippe Kehren said the company is maintaining strategic momentum despite a challenging backdrop.

 

“During Q1 2026, we continued to execute our strategy with discipline, delivering progress on our transformation, advancing our energy transition initiatives, and further optimizing our industrial footprint. These actions have strengthened our operational resilience and cost structure, while enhancing our ability to manage a more volatile external environment.

 

"While our performance remained solid across most of our businesses during Q1 2026, we do not expect the operating environment to improve in the short term. In response, we are taking targeted actions to address these challenges where needed, and remain firmly focused on cash generation, allowing us to support both our strategic priorities and our financial resilience.”

 

Looking ahead, Solvay expects full-year 2026 underlying EBITDA between €770 million and €850 million, with free cash flow of at least €200 million after transformation costs. Structural cost savings are projected to reach around €300 million by year-end.

 

Despite near-term pressure, the company is leaning on cost discipline, portfolio optimization, and cash generation to stabilise performance in a still-uncertain chemical market.