Solvay (SOLB) Q2 2025 earnings summary

Executive summary

• Q2 2025 saw continued soft market conditions and demand reductions due to global tariff discussions, FX movements, and geopolitical tensions, especially impacting Soda Ash and Coatis.

• Underlying net sales in Q2 2025 were €1,102 million, down 3.8% organically year-over-year, with a notable one-off €20 million gain from a contract termination in Special Chem.

• Underlying EBITDA for Q2 2025 was €230 million, down 12.4% organically, with a margin of 20.9%.

• Free cash flow to shareholders from continuing operations was €54 million in Q2 and €97 million for H1 2025.

• Structural cost savings initiatives delivered €29 million in Q2, totaling €55 million year-to-date and €165 million since 2024.

Financial highlights

• Q2 2025 underlying net sales were €1.1 billion, down 7.8% year-over-year (3.8% organically); H1 2025 net sales were €2,223 million, down 7.2%.

• Underlying EBITDA was €230 million, down 15.4% year-over-year (12.4% organically); margin at 20.9%.

• Free cash flow for H1 2025 reached €97 million, in line with seasonal trends.

• Net financial debt increased to €1,856 million, with a leverage ratio of 1.9x.

• Basic EPS for Q2 2025 was €0.93, down 11.2% year-over-year.

Outlook and guidance

• 2025 underlying EBITDA is guided between €880 million and €930 million, assuming current FX rates.

• Free cash flow target for 2025 reaffirmed at around €300 million; capex capped at €300 million.

• Cost savings are expected to exceed €200 million by end-2025.

• Market conditions are expected to remain challenging in H2 2025 due to low visibility and ongoing demand softness.

• Essential capex to remain at the low end of €250–300 million due to soft demand.