Arkema delivered a solid third-quarter performance, with EBITDA rising 7% year-on-year to €332 million, as its Specialty Materials business demonstrated resilience amid weak global demand, rising energy costs and persistent raw material inflation.
The French chemicals group reported an 8.1% increase in sales to €2.4 billion, supported by higher prices and resilient volumes. However, market conditions remained uneven across regions, with improved volumes in the US, difficult trading conditions in Europe and softer demand in Asia.
Specialty Materials volumes grew 1.7% year-on-year, driven by positive momentum in attractive markets, including batteries, water management and adhesives for durable goods, particularly in aerospace and transportation.
Arkema said further price adjustments were implemented to counter the surge in energy costs and continued inflation in raw material prices.
The Group's EBITDA margin remained stable at 14.1%, underlining the resilience of its Specialty Materials portfolio.
Among its business segments, Adhesive Solutions recorded good growth, supported by favourable momentum in industrial adhesives, which more than offset subdued demand in construction.
Coating Solutions posted a significant increase, driven by strong performances in UV curing applications and rheology additives, extending the positive trend seen in the second quarter of 2026.
Advanced Materials remained stable, combining new business development in High Performance Polymers (HPP), supported by long-term megatrends, with challenging conditions in Performance Additives.
Primary Materials, meanwhile, came under pressure from weaker market conditions in acrylic monomers.
Arkema reaffirmed its commitment to delivering its 2026 operational priorities, including generating an additional €50 million in EBITDA from major projects, offsetting fixed-cost inflation and keeping capital expenditure below €600 million.
The Group's net debt stood at €3.5 billion, compared with €3.6 billion at the end of June, supported by recurring cash flow of €129 million. The company attributed the cash performance to measures aimed at limiting the impact of inflation on working capital.
Arkema is also stepping up its innovation capabilities, strengthening R&D resources in China and at its Global Battery Center of Excellence in France to accelerate the development of advanced solutions for high-growth applications.
In a significant sustainability milestone, the company's 2050 net-zero target has been validated by SBTi Services, reinforcing its climate ambitions and decarbonisation commitments as customers increasingly seek more sustainable solutions.
Chairman and CEO Thierry Le Hénaff said the Group's performance reflected the strength of its geographical footprint, specialty portfolio and operational discipline.
“In a complex macroeconomic and geopolitical context, Arkema delivered a solid performance in the third quarter, benefiting from its balanced geographical footprint, its strong positioning in fast-growing specialty applications and strict operational discipline. I would like to sincerely thank our teams for their ongoing commitment and their agility, which are critical to making a difference in this environment.
"We do not expect the external conditions to ease in the coming months, and we will continue to focus on the elements under our control, including all the initiatives which will make us stronger in the long run."
He added: "The resilience of our current performance highlights the consistency of Arkema’s journey and the relevance of its deep transformation over the past 20 years towards Specialty Materials, focused on our three core capabilities of creating, bonding and protecting materials. Looking ahead, I am convinced that we have all the foundations in place to continue to grow and enhance our profitability, building on our solid asset base, cutting-edge technologies and strong innovation potential.”
Despite continued macroeconomic and geopolitical uncertainty, Arkema maintained its full-year 2026 outlook, saying it remains on track to deliver slightly higher year-on-year EBITDA at constant foreign exchange rates.
The company expects the operating environment to remain challenging and volatile, but is banking on its Specialty Materials portfolio, pricing discipline, operational efficiency and innovation pipeline to sustain growth and protect profitability.
