Solvay has posted 5.8 per cent drop in its first quarter 2025 net sales at €1,122 million as compared to Q1 2024. Uncertainties on the macro-environment led customers to be more cautious in the second part of the quarter, creating some softness in Soda Ash, particularly in March. Most of the other businesses showed resilient performance.

Underlying EBITDA in Q1 2025 decreased year-on-year to €250 million (-5.7% organically) compared to Q1 2024, with 22.3% underlying EBITDA margin. It was supported by a one-off gain of c. €10 million on the favorable outcome of a patent dispute in Performance Chemicals. Structural cost savings initiatives delivered €27 million in Q1 2025, bringing the cumulative savings to €137 million since the start of 2024. Meanwhile, underlying net profit from continuing operations was €102 million in Q1 2025 vs. €119 million in Q1 2024.

Philippe Kehren, CEO, Solvay said: “The current macro-environment is uncertain and filled with challenges that were not foreseen at the start of the year. However, our resilient global and local to local business model will allow us to navigate these challenges.

Our focus in the short-term is clear: accelerating the transformation of the company and disciplined spending to optimize cash generation. And I am pleased to see the ongoing progress in these areas, driven by our teams worldwide.

I have every confidence in the ability of the Solvay team to succeed in the current environment and continue to deliver for all our stakeholders.”

2025 outlook

The current demand environment is uncertain but the essential nature of its businesses makes Solvay resilient. The company expects the second quarter underlying net sales to be sequentially stable compared to Q1 2025, while underlying EBITDA would be sequentially down as Q1 included a one-off gain of c. €10 million and as Q2 will start to see an increase of the temporary stranded costs from the exit of the Transition Service Agreement with Syensqo.

Solvay confirms the 2025 guidance as follows:

Underlying EBITDA: €1.0 billion to €1.1 billion; Solvay currently expects to reach the lower half of the range (should current market conditions and currency exchange rates continue to prevail)

Cost savings: €200 million by the end of 2025

Free cash flow to Solvay shareholders from continuing operations: around €300 million in 2025, of which the majority will be delivered in the second half of the year due to normal seasonality

Capex: around €300 million, down from “between €300 million to €350 million”

Solvay is exposed to different currencies. We estimate that the average annual currency translation impact on underlying EBITDA is €15 million per 5 USD cents movement and €5 million per 25 BRL cents movement.