Solvay released its fourth quarter and full-year 2025 financial results on 24 February 2026. The company maintained strong cash flow despite "persistent market softness" and geopolitical challenges.

2025 net sales at €4.3 billion reflected an organic decrease of 6.5% compared to 2024.Underlying EBITDA at €881 million was down 13.4% organically from 2024, with a margin of 20.7%. Free Cash Flow (FCF) at €350 million, supported by disciplined capital expenditure and working capital.

For Q4 2025, Solvay has posted net sales of €995 million, down 9.6% organically year-on-year. Underlying EBITDA at €169 million was down significantly from €256 million in Q4 2024.  The company reported a net loss attributable to shareholders of €95 million for the quarter, compared to a profit of €30 million in the prior year.  

Philippe Kehren, CEO, Solvay, said: “In 2025, we delivered a strong performance in terms of free cash flow and retained our attractive EBITDA margin, at the same time as advancing the strategic and sustainability commitments that are reshaping Solvay for the long term, despite persistent market softness and continued geopolitical uncertainty. Our progress on cost savings, our disciplined capital allocation, and the development of our energy transition projects all reflect the determination of our teams. In the short term, transformation expenses are impacting our performance, but they are necessary in our journey to build the Solvay of the future.”

Focus on capital allocation, cost and cash

Solvay stays committed to its “Essential chemistry” strategy and its clear capital allocation framework.

In the current challenging environment, cost savings are a key lever used by management to sustain performance. The savings program already generated more than €200 million in the first two years, leveraging the digitalization and simplification of the group.

In particular, over the past two years, the company optimized its industrial footprint to keep the most competitive asset base and adapts it, when necessary, to the changes in the regional supply/demand realities. In the Soda Ash business unit, Solvay announced yesterday the launch of a consultation process to right size the production capacity in Torrelavega (Spain) to 420kt. In the Peroxides business unit, the sites of Warrington (UK) and Povoa (Portugal) have been closed. The Special Chem business unit has closed its site in Salindres (France) and announced the restructuring of its two German sites.

Solvay prioritizes investments based on its capital allocation framework with essential capex and dividends as the first priorities. Discretionary investments are sized based on merit and affordability, and will remain focused in the short term on targeted growth opportunities, such as bicarbonate and electronic grade peroxides. Lastly, the company will continue to review its portfolio to ensure alignment with its long-term strategy and capital allocation priorities.

2026 Outlook

In 2026, Solvay expects geopolitical and macroeconomic headwinds to persist and weigh on end-market demand, and competitive pricing pressure in certain business lines to stay. Transformation expenses (Transition Services Agreement phase-out, new ERP deployment, restructuring of the Fluorine activities) will continue to negatively impact EBITDA and Free Cash Flow, before gradually fading out as from 2027. Finally, the company is further optimizing its portfolio of CO2 emission rights in 2026, with a similar impact as in 2025.

Solvay guidance for full year 2026 is as follows:

Underlying EBITDA between €770 million and €850 million. This includes a year-on-year negative impact of €20 million from currencies in 2026 (assuming a 1.20 EUR/USD exchange rate2) and another €40 million of transformation expenses.

Free Cash Flow from continuing operations to Solvay shareholders to be at least €200 million, net of c. €90 million of transformation expenses, and with Capex capped at €300 million.

Cumulated structural cost savings to be around €300 million at the end of 2026.

Solvay remains committed to the pillars of its financial policy: a stable-to-increasing dividend and an investment-grade rating.