Solvay (SOLB) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales rose 3.9% organically year-over-year to €1,156 million, driven by higher volumes despite lower prices, with stable underlying EBITDA at €259 million and a margin of 22.4% as cost savings offset negative pricing.

• Free cash flow reached €74 million in Q3 and €320 million for the first nine months, with CapEx ramping up to €84 million and sustainability milestones achieved at the Green River plant, including a new emissions control process reducing greenhouse gas emissions by up to 8%.

• The company remains focused on safety, following a fatal incident at the Torrelavega site and reporting a RIIR of 0.27.

• Interim dividend of €0.97 per share was approved, payable January 2025.

• Underlying net profit from continuing operations was €108 million in Q3 2024, down from €157 million in Q3 2023.

Financial highlights

• Q3 2024 net sales: €1,156 million (+3.2% yoy); underlying EBITDA: €259 million (22.4% margin, down 3.2pp yoy); underlying net profit: €108 million (-31.5% yoy).

• Free cash flow to shareholders from continuing operations was €320 million year-to-date.

• Net financial debt stood at €1.5 billion as of September 30, 2024, with a leverage ratio of 1.5x.

• ROCE reached 17.3% in Q3 2024.

• S&P rating maintained at BBB- with a stable outlook.

Outlook and guidance

• Full-year 2024 underlying EBITDA expected at the high end of the -10% to -15% organic growth range (€975–1,040 million), with free cash flow guidance maintained above €300 million and CapEx expected at €300–350 million.

• Cost savings initiatives to exceed €80 million for the year, with over €77 million delivered in the first nine months.

• Trends from the first nine months expected to continue into Q4, with some seasonality and no structural market recovery anticipated.

• 2025 approached with caution due to market uncertainty; focus remains on transformation and cost savings.