Syensqo reported a solid start to 2026, with first-quarter net sales of €1.4 billion, up 5% sequentially, powered by stronger demand in Specialty Polymers and Novecare and stable pricing across key segments.
Despite stable year-on-year volumes, results were weighed by foreign exchange headwinds. Gross profit came in at €444 million, with a 31.7% margin. However, momentum improved sharply versus the prior quarter, with gross profit up 15% and margins expanding by 260 basis points, driven largely by Specialty Polymers.
Underlying EBITDA reached €251 million, down 13% organically year-on-year but up 6% sequentially, reflecting improving performance across Specialty Polymers, Novecare and Composite Materials. The company posted underlying profit attributable to shareholders of €68 million and operating cash flow of €82 million, which included a €30 million separation-related payment.
Capital discipline remained a key theme, with capital expenditure falling 44% year-on-year to €97 million. Syensqo also completed the divestment of its Oil & Gas business in January, generating about €130 million in proceeds.
Chief executive Mike Radossich said the company is seeing improving momentum heading into the second quarter, supported by stronger order books and internal execution efforts.
“The first quarter of the year saw us deliver on our outlook in a dynamic external environment. We also saw stable year-on-year volumes with improved momentum in Specialty Polymers, supported by ongoing initiatives to drive longer-term growth, as well as strong sequential growth in Novecare. Overall, we have seen improving order book trends in the second quarter, which gives greater line of sight to deliver on our full year outlook.
While the ongoing conflict in the Middle East had no material impact on our first quarter performance, it remains a source of uncertainty and we have taken actions to mitigate any direct impact on our operations.
Having completed my first 100 days as CEO, and complemented by recent leadership appointments, we are working at pace to drive more consistent execution, sharpen our capital discipline as well as implement actions to accelerate growth and improve cashflow trajectory.”
Looking ahead to 2026, Syensqo maintained its guidance for low single-digit volume growth, led by Composite Materials. The company also reiterated that Q1 is expected to be the weakest quarter of the year, with recovery building through the second half as order books strengthen.
Full-year targets remain steady: Underlying EBITDA of approximately €1.1 billion (unchanged); Operating cash flow of approximately €700 million (unchanged);
Capital expenditure of approximately €450 million (revised down from prior guidance of “less than €500 million”).
With cost discipline tightening and recovery signals emerging in key divisions, Syensqo is positioning for a stronger second-half performance even as geopolitical uncertainty continues to linger.
