Syensqo has reported net sales of €6.6 billion declined by 3% year-on-year organically driven by lower pricing (-4%), partially offset by higher volumes (+1%) with improved net sales momentum in the second half; double digit growth in Composite Materials. Gross profit in 2024 stood at €2.2 billion included net pricing impact of €-97 million, resulting in gross margin of 33.8%. During the year, underlying EBITDA of €1.4 billion, in-line with expectations; EBITDA margin of 21.5%. Underlying net profit stood at €553 million.

For Q4 2024, the company posted net sales of €1.6 billion increased by 2% year-on-year organically, driven by higher volumes (+3%), partially offset by lower pricing (-1%); On a sequential basis, pricing increased by 1% compared to Q3 2024. Gross profit of €482 million was approximately flat year-on-year including net pricing impact of €-26 million, resulting in gross margin of 30.2%. Underlying net profit stood at €76 million.

“2024 was a milestone year for Syensqo. With our sharper focus and a deeper understanding of our customers’ needs, we now have more clarity around how we will accelerate our innovation to outperform our markets and increase returns. We also used our balance sheet strength to increase direct shareholder returns, through the board’s proposed dividend payment as well as the ongoing share buyback program.

Our Q4 performance saw us return to year-on-year EBITDA growth, coupled with strong cash flow generation. This was achieved against the backdrop of macroeconomic softness and ongoing market uncertainties experienced across our sector. In this context, we will remain focused on executing initiatives in 2025 that we can control, accelerating cost actions to support our profitability, further refining our disciplined approach to capital allocation, and taking steps to unlock value. Underpinned by our strong balance sheet, we will also continue to balance cashflow generation and attractive growth investments with shareholder returns.

2025 will also see us continue to assess options to accelerate value creation, including through divestments, to become an even more focused specialty company. Having already determined that we will divest the Oil & Gas business, we now plan to do the same with Aroma.

The Americas is Syensqo’s largest region, representing more than 40% of our revenues and people, as well as more than half of our industrial footprint. In addition, we expect a major part of our future growth and investments to be in this strategically important region. I am therefore pleased to share that our Board of Directors has approved the exploration of a potential dual listing in the US, in addition to Brussels, which has the potential added benefits of expanding and enhancing our investor base,” said Dr. Ilham Kadri, CEO, Syensqo.

2025 Outlook

For 2025, we expect macroeconomic and demand uncertainty to continue across most of our end markets. Supported by our strong balance sheet, we will focus on accelerating initiatives that are within our control, increasing cost savings and further focusing our investments to outperform our markets.

Growth is expected to be led by Composite Materials, supported by strong underlying demand as well as our diverse range of customer programs and applications. For Specialty Polymers, we expect net sales to be approximately flat versus 2024, with growth primarily driven by Healthcare and Food Packaging, offset by the lower net sales in Electronics.

Overall, we expect flattish volumes in 2025. This includes the combined impact of approximately €80 million in Electronics, driven by a design change in a customer program, and in Aerospace, as a result of strike action at a major customer and its related impact on demand in the first half of the year.

In order to enhance our profitability in 2025 and beyond, we also plan to accelerate cost savings initiatives. This is expected to both offset the inflationary impact on costs during the year, and also deliver more than €200 million of run rate savings by the end of 2026.