Arkema generated powerful cash flow in 2025 despite a punishing macroeconomic backdrop, holding profitability within guidance while pressing ahead with major industrial expansions in the US and Asia.
The specialty chemicals group posted EBITDA of €1.25 billion, landing within its target range, with a 13.8% margin in what it described as a weak demand environment across the US and Europe. Asia remained comparatively resilient. Major projects contributed an additional €60 million in EBITDA versus 2024.
Most notably, Arkema delivered €464 million in recurring cash flow — far exceeding its €300 million guidance — reinforcing its balance sheet ahead of an anticipated market recovery.
The year was marked by strict operational management, with tight control of costs, capital expenditure and working capital helping offset fixed cost inflation — even as R&D spending increased.
Specialty Materials showed resilience, though performance was weighed down by cyclical weakness in acrylics and declining volumes in older refrigerant technologies.
Growth momentum continued in strategic high-value markets, with 16% year-on-year sales growth in batteries, sports, 3D printing, healthcare and fluorospecialties.
Three major capacity expansions — DMDS and 1233zd in the U.S., and Rilsan® Clear in Asia — were successfully brought online on schedule and on budget.
The company also reported progress on key sustainability indicators and proposed maintaining its dividend at €3.60 per share.
Beginning in 2026, Arkema will revise its reporting segmentation to better reflect portfolio dynamics and improve transparency in Specialty Materials performance, which posted a 15.7% margin in 2025 before allocation of corporate costs, with EBITDA down just 5% year-on-year at constant exchange rates.
Chairman and CEO Thierry Le Hénaff acknowledged the severity of the operating environment.
“In 2025 the macroeconomic environment was particularly demanding and more challenging than initially expected at the start of the year. Firstly, I would like to thank Arkema’s teams and management for their strong commitment and agility allowing us to address the headwinds we faced.”
He emphasized the company’s focus on controllable levers.
“On the one hand, we focused on tightly managing costs, capex and working capital. As a result, the Group generated strong recurring cash flow, strengthening further its balance sheet, that will be key when the market rebounds. At the same time, we continued to implement our long-term innovation strategy for more sustainable solutions and to execute our major projects in Asia and North America. Their contribution was lower than expected in 2025 but operationally the plants are living up to our high expectations and their long-term outlook remains promising.”
Looking ahead, he underscored discipline and strategic execution. "In an environment that continues to be uncertain, we will keep on focusing on our strengths and what is under our control, namely our cost discipline and our customer intimacy, as well as leveraging on our major projects and our strong innovation dynamics.”
For 2026, Arkema expects the global environment to remain weak, with adverse currency effects and limited visibility. Even so, the group is targeting slight EBITDA growth at constant currencies.
An additional €50 million EBITDA contribution is expected from the ramp-up of major projects, supported by newly commissioned production capacities.
Headcount is projected to decline by around 3% per year over the next three years, as the company streamlines operations. Capital expenditure will be managed at approximately €600 million in 2026, while maintaining targeted investment in high-growth markets.
Arkema says it will continue executing its Specialty Materials roadmap, expanding customer partnerships and deploying technologies aimed at delivering lower-carbon, more sustainable solutions.
