Arkema (AKE) Q1 2026 earnings summary

Executive summary

• Q1 2026 volumes remained stable year-over-year, with growth in all Specialty Materials segments and a notable improvement in March after a slow start to the year, especially in Asia.

• Specialty Materials volumes rose 1.5%, driven by batteries, sport, 3D printing, and healthcare, with batteries showing robust growth of ~15% year-over-year.

• EBITDA reached €283 million, up 14% sequentially from Q4 2025 but down 14% year-on-year, with a margin of 13.0%, impacted by a €20 million negative currency effect and weak U.S./Europe demand.

• The company managed cost inflation and supply chain disruptions from the Middle East conflict, initiating strong pricing actions since March to offset higher input costs.

• Major growth projects progressed, including new PVDF capacity in the U.S. (mid-2026 start), a 20% expansion in China (2028), and the successful ramp-up of the Singapore PA 11/Rilsan Clear plant.

Financial highlights

• Q1 2026 revenue was €2,182 million, down 8.4% year-on-year, impacted by a 5.1% negative currency effect and a 3% negative price effect.

• Q1 EBITDA was €283 million; recurring EBIT was €118 million (5.4% margin); adjusted net income was €65 million (€0.86/share).

• Non-recurring items totaled €45 million, including €34 million PPA depreciation and €11 million restructuring costs.

• Q1 recurring cash flow was -€95 million, reflecting typical seasonal working capital needs and improved year-over-year.

• Net debt (including hybrids) at March 2026 was €3,344 million; net debt/EBITDA ratio at 2.8x.

Outlook and guidance

• Q2 2026 expected to show sequential improvement, with EBITDA targeted to be comparable to Q2 2025, supporting full-year guidance of slight EBITDA growth at constant exchange rates.

• Major projects are expected to deliver around €50 million additional EBITDA in 2026 versus 2025.

• Price increases to offset input cost inflation will become visible in Q2.

• The company remains agile in pricing and operational controls amid ongoing Middle East conflict and global uncertainties.

• Capex is managed at ~€600 million for 2026.