PARIS--(BUSINESS WIRE)--Regulatory News:
Arkema (PARIS:AKE):
In a quarter marked by the conflict in the Middle East, Arkema delivered a robust performance with EBITDA up 7.4% YoY and an EBITDA margin rising to 16.1%
- In an overall still weak global demand, with no material change to previous quarters, organic growth of Arkema sales of 3.2%, supported by the pricing dynamics and the progression of Asia
- A few pockets of growth continuing to contribute meaningfully, in particular batteries, electronics and 3D printing
- Sharp increase of raw material costs following the start of the conflict in the Middle East leading to swift pricing adjustments to offset input cost inflation
- Solid EBITDA, up 7.4% YoY, at €391 million (€364 million in Q2’25) including €10 million FX headwind, and EBITDA margin improving to 16.1% (15.2% in Q2’25)
- Mostly driven by the performances of Adhesive Solutions benefiting from the growth of industrial applications and Coating Solutions recovering well from last year’s level
- Advanced Materials impacted by weaker Performance Additives while HPP gained momentum
- Primary Materials supported by the improvement of acrylic spreads, partially offset by the decline of old-generation refrigerants
- Strict cost discipline and continued progress in streamlining the organization, in line with the objective of offsetting fixed costs inflation over the full year
- Recurring cash flow at €78 million despite the increase in working capital due to higher raw material prices and traditional seasonality. Capex was lower YoY, in line with the €600 million annual target
- Net debt broadly stable YoY at €3.6bn after the payment of the dividend, confirming the solidity of the Group’s balance sheet in weak market conditions
- Confirmed outlook: within a global environment that remains uncertain and on the basis of the Group’s achievement in H1, Arkema is confident of delivering its guidance of a FY’26 EBITDA slightly higher than last year at constant FX
Chairman and CEO, Thierry Le Hénaff, said:
“Arkema delivered a solid second quarter in a challenging environment impacted by the crisis in the Middle East, rising raw material prices and widespread supply chain disruption. Arkema’s teams once again demonstrated agility and commitment. We were particularly pleased with the significant improvement in Adhesives and Coatings as well as the better dynamics in HPP. This demonstrates the strength of Arkema’s portfolio including its positioning in key markets such as electric mobility, advanced electronics, datacenters and bio-based consumer goods.
The performance of the quarter was contrasted across regions, with continuous challenges in Europe, particularly France and Germany, slight improvement in North America and good momentum in Asia, notably South-East Asia and India.
In the second half, we will remain vigilant as regards the situation in the Middle East, which has not stabilized yet. Our priorities will continue to combine strict discipline on costs and operational excellence with the ramp-up of our major projects, including the recent acquisition of Dow adhesives, our PA11 and Rilsan® Clear plants in Singapore, the PVDF expansion in Calvert City in the US, the new distillation in acrylics in France and the HF supply at Nutrien in the US.”
KEY FIGURES
| in millions of euros | Q2'26 | Q2'25 | Change | H1'26 | H1'25 | Change | ||||
| Sales | 2,427.8 | 2,395.5 | +1.3% | 4,609.6 | 4,776.3 | -3.5% | ||||
| EBITDA (a) | 390.9 | 363.9 | +7.4% | 673.5 | 692.5 | -2.7% | ||||
| Specialty Materials | 352.1 | 342.2 | +2.9% | 630.4 | 666.3 | -5.4% | ||||
| Primary Materials | 57.7 | 44.3 | +30.3% | 90.5 | 75.0 | +20.7% | ||||
| Corporate | -19.0 | -22.6 | -47.4 | -48.8 | ||||||
| EBITDA margin (a) | 16.1% | 15.2% | 14.6% | 14.5% | ||||||
| Specialty Materials | 17.3% | 17.0% | 16.2% | 16.6% | ||||||
| Primary Materials | 14.8% | 12.0% | 13.0% | 10.1% | ||||||
| Recurring operating income (REBIT) (a) | 219.5 | 197.8 | +10.9% | 337.6 | 358.1 | -5.7% | ||||
| REBIT margin (a) | 9.0% | 8.3% | 7.3% | 7.5% | ||||||
| Adjusted net income (a) | 129.0 | 119.7 | +7.8% | 193.7 | 218.3 | -11.3% | ||||
| Adjusted net income per share (in €) (a) | 1.70 | 1.59 | 2.56 | 2.89 | ||||||
| Operating income | 141.4 | 116.0 | +21.9% | 215.1 | 218.6 | -1.6% | ||||
| Net income - Group share | 65.7 | 47.2 | +39.2% | 92.9 | 96.4 | -3.6% | ||||
| Recurring cash flow (a) | 78.3 | 110.7 | -29.3% | -17.0 | -26.9 | |||||
| Free cash flow (a) | 67.7 | 91.0 | -25.6% | -40.2 | -63.8 | |||||
| Net debt and hybrid bonds (a) | 3,604.9 | 3,579.9 | 3,604.9 | 3,579.9 | ||||||
| €3,169.6m as of 31/12/2025 | ||||||||||
| (a) Alternative performance indicator : refer to sections 6 and 8 of the consolidated financial information at the end of June 2026 available at the end of the document for reconciliation tables and definitions | ||||||||||
SECOND-QUARTER 2026 BUSINESS PERFORMANCE
At €2,428 million (€2,395 million in Q2’25), Group sales were driven by organic growth of 3.2% year-on-year. This was supported by a 5.1% price effect, reflecting swift pricing adjustments implemented by the Group to offset the sharp raw material cost inflation, as well as tighter market conditions in upstream acrylics. In an overall demand environment remaining weak with no material change to previous quarters, volumes were down 1.8% compared to last year. Some attractive key markets, namely batteries, electronics and 3D printing continued to show good growth, with around 15% sales increase in the quarter compared to last year. Scope effect was slightly negative at 0.7%, corresponding to the restatement as a non-recurring item of some small plastic additives businesses in connection with their divestment completed on 1 July. Lastly, the currency effect was more moderate than in the first quarter at a negative 1.2%, mainly linked to the devaluation of the US dollar against the euro.
At €391 million, Group EBITDA was solid, up 7.4% year-on-year (€364 million in Q2'25), mostly driven by the strong performances of Adhesive Solutions and Coating Solutions. Advanced Materials were impacted by the challenging environment in Performance Additives while High Performance Polymers showed a better dynamic than in the first quarter, being broadly stable year-on-year. Primary Materials benefited from the improvement of acrylic spreads, although back to low levels in Asia, partially offset by the decline, as expected, in old-generation refrigerants. Group EBITDA also included a currency headwind of €10 million compared to last year. Major projects continued to ramp up smoothly during the quarter and their additional EBITDA contribution amounted to around €25 million in the first half of 2026 compared to last year. In addition, Arkema maintained its strict cost discipline, while streamlining the organization, in line with the objective of offsetting fixed costs inflation over the full year. In this context, EBITDA margin increased meaningfully by 90 bps and stood at the good level of 16.1% in the quarter (15.2% in Q2’25).
Recurring depreciation and amortization was slightly up versus last year at €171 million (€166 million in Q2’25). As a result, recurring operating income (REBIT) increased by 10.9% to €220 million (€198 million in Q2’25), and REBIT margin improved to 9.0% (8.3% in Q2’25).
Operating income was up and stood at €141 million (€116 million in Q2’25), including €46 million of exceptional expenses, mainly corresponding to costs linked to the reorganization of Jarrie and Pierre-Bénite sites, ongoing legal proceedings and the divestment of some small plastic additives businesses, which was completed on 1 July.
Adjusted net income was up 7.8% and amounted to €129 million (€120 million in Q2'25), i.e. €1.70 per share.
CASH FLOW AND NET DEBT AT 30 JUNE 2026
Recurring cash flow stood at €78 million in the quarter despite the increase in working capital due to higher raw material prices and traditional seasonality. At end-June 2026, working capital represented a good ratio at 15.8% of the annualized sales (17.0% at end-June 2025). Recurring cash flow also included lower capital expenditure than last year at €117 million (€152 million in Q2'25), in line with the annual guidance of €600 million.
Free cash flow amounted to €68 million in the quarter (€91 million in Q2'25), including a non-recurring cash outflow of €11 million, linked essentially to restructuring costs.
Net debt and hybrid bonds stood at €3,605 million at end-June 2026, broadly stable year-on-year (€3,580 million at end-June 2025), after the €3.60 per share dividend payment in May 2026 for a total amount of €272 million. This confirms the solidity of the Group’s balance sheet in weak market conditions. The net debt and hybrid bonds to last-twelve-months EBITDA ratio stood at 2.9x at end-June 2026.
SECOND-QUARTER 2026 PERFORMANCE BY SEGMENT
ADHESIVE SOLUTIONS (30.5% OF TOTAL GROUP SALES)
| in millions of euros | Q2'26 | Q2'25 | Change | ||
| Sales | 735.4 | 715.8 | +2.7% | ||
| EBITDA (a) | 111.0 | 103.5 | +7.3% | ||
| EBITDA margin (a) | 15.1% | 14.5% | |||
| Recurring operating income (REBIT) (a) | 82.7 | 77.8 | +6.3% | ||
| REBIT margin (a) | 11.2% | 10.9% | |||
| (a) Alternative performance indicator : refer to sections 6 and 8 of the consolidated financial information at the end of June 2026 available at the end of the document for reconciliation tables and definitions | |||||
Sales in the Adhesive Solutions segment amounted to €735 million (€716 million in Q2’25), posting 3.8% year-on-year organic growth. Prices were up 3.4%, driven by pricing actions, notably in industrial adhesives, and positive product mix. Volumes increased slightly by 0.4%, supported by a strong growth in high-end solutions for durable goods, both in North America and Europe, in particular in aerospace, consumer electronics and industrial assembly, while volumes in packaging and construction declined. The currency effect was a negative 1.0%.
Segment EBITDA was strong at €111 million, up 7.3% year-on-year (€103 million in Q2'25) and EBITDA margin gained 60 bps at 15.1% (14.5% in Q2’25). This result reflected the improvement of the mix towards higher value-added solutions as well as the swift and disciplined execution of the teams to pass through input cost inflation and tightly manage operations. Achieved in an overall low volume environment, this performance confirms the potential of this segment going forward and highlights the improving quality of its portfolio of technologies.
ADVANCED MATERIALS (36% OF TOTAL GROUP SALES)
| in millions of euros | Q2'26 | Q2'25 | Change | ||
| Sales | 872.0 | 899.6 | -3.1% | ||
| EBITDA (a) | 162.9 | 187.6 | -13.2% | ||
| EBITDA margin (a) | 18.7% | 20.9% | |||
| Recurring operating income (REBIT) (a) | 71.1 | 98.7 | -28.0% | ||
| REBIT margin (a) | 8.2% | 11.0% | |||
| (a) Alternative performance indicator : refer to sections 6 and 8 of the consolidated financial information at the end of June 2026 available at the end of the document for reconciliation tables and definitions | |||||
Sales in the Advanced Materials segment stood at €872 million (€900 million in Q2’25), down 1.5% compared to last year at constant exchange rates. Prices increased by 2.1%, benefiting from the pricing initiatives launched by the Group and were up in most of the segment’s businesses. On the other hand, volumes decreased by 3.6%, reflecting the decline in Performance Additives, impacted by the situation in the Middle East, lower demand in some end-markets (refining and fertilizers) and sulfur cost increase. This was partially offset by better volumes in High Performance Polymers, supported by the continuous growth momentum in attractive key markets such as batteries, electronics and 3D printing, as well as the ongoing ramp-up of our major projects. Lastly, the currency effect was a negative 1.6%.
Segment EBITDA stood at €163 million (€188 million in Q2’25), impacted by weaker Performance Additives. High Performance Polymers EBITDA was broadly stable, supported by its new business developments in high-end applications as well as the strong achievements of PIAM and in PVDF, while Fluorospecialties were lower year-on-year, against a high comparison base. In this context, EBITDA margin for the segment remained at the good level of 18.7% (20.9% in Q2’25).
COATING SOLUTIONS (17.5% OF TOTAL GROUP SALES)
| in millions of euros | Q2'26 | Q2'25 | Change | ||
| Sales | 422.4 | 402.6 | +4.9% | ||
| EBITDA (a) | 78.2 | 51.1 | +52.9% | ||
| EBITDA margin (a) | 18.5% | 12.7% | |||
| Recurring operating income (REBIT) (a) | 63.5 | 35.7 | +78.1% | ||
| REBIT margin (a) | 15.0% | 8.9% | |||
| (a) Alternative performance indicator : refer to sections 6 and 8 of the consolidated financial information at the end of June 2026 available at the end of the document for reconciliation tables and definitions | |||||
At €422 million, sales in the Coating Solutions segment were up 4.9% year-on-year (€403 million in Q2’25). This increase was driven by a strong volume effect of 5.7%, reflecting the significant growth of Sartomer in all three regions, notably in electronics, 3D printing and industrial coatings, as well as the positive dynamic observed in waterborne resins for decorative paints in North America. Price effect stood at 4.7% and included a negative 3.5% mechanical effect linked to the transition of certain activities to manufacturing agreements. Excluding this impact, prices increased by 8.2%, reflecting swift pricing actions in all segment’s businesses to offset input cost inflation, notably acrylics, as well as better market conditions in UV curing resins in the US. Sales also included a negative 4.2% impact linked to the divestment of some small plastic additives businesses. Lastly, the currency effect was a negative 1.3%.
Segment EBITDA grew significantly to €78 million, recovering well from last year’s level (€51 million in Q2’25) and EBITDA margin increased sharply to 18.5% (12.7% in Q2’25). This performance, up in both resins and additives businesses, reflected the improved quality of Arkema’s portfolio thanks to continued refocusing towards higher value-added applications and also benefited from the agility demonstrated by the teams to swiftly adjust the pricing to the inflationary environment.
PRIMARY MATERIALS (16% OF TOTAL GROUP SALES)
| in millions of euros | Q2'26 | Q2'25 | Change | ||
| Sales | 389.3 | 368.5 | +5.6% | ||
| EBITDA (a) | 57.7 | 44.3 | +30.3% | ||
| EBITDA margin (a) | 14.8% | 12.0% | |||
| Recurring operating income (REBIT) (a) | 23.5 | 11.7 | +100.3% | ||
| REBIT margin (a) | 6.0% | 3.2% | |||
| (a) Alternative performance indicator : refer to sections 6 and 8 of the consolidated financial information at the end of June 2026 available at the end of the document for reconciliation tables and definitions | |||||
At €389 million, sales in the Primary Materials segment increased by 5.6% compared with second-quarter 2025, driven by a significant 16.0% price effect, reflecting the rise of acrylic monomers prices following the start of the Middle East conflict. Volumes decreased by 9.7%, impacted in particular by weak demand in acrylic monomers, notably in Europe, and the decline, as expected, of old-generation refrigerant gases. The currency effect was a negative 0.7%.
Segment EBITDA amounted to €58 million (€44 million in Q2’25), and EBITDA margin stood at 14.8% (12.0% in Q2'25), benefiting from the improvement of acrylic spreads, although back to low levels in Asia since May, while old-generation refrigerant gases continued to progressively fade away.
OUTLOOK
The start of the second half follows the demand trend of recent months, within a macro environment that remains challenging and volatile with geopolitical uncertainties prevailing in the Middle East.
The Group is firstly focusing on the elements that are within its control. It will continue to tightly manage its operations, with the aim of offsetting fixed cost inflation over the full year, and to ramp up its major projects, which are expected to deliver around €50 million additional EBITDA in 2026 versus 2025. Cash allocation will also continue to be a key focus for the Group, notably through strict management of working capital and capital expenditure limited to €600 million in 2026.
In this global environment, on the basis of all these initiatives and the Group’s achievement in H1, Arkema is confident of delivering its guidance of a FY’26 EBITDA slightly higher than last year at constant FX, reflecting a traditional seasonality between the two semesters. The second half of the year should notably benefit from year-on-year growth in Adhesive Solutions and Coating Solutions.
Beyond these short-term priorities, Arkema will also continue to implement its strategic roadmap, notably its innovation focus and the development of high-performance solutions, in partnership with its customers and suppliers, for a less carbon-intensive and more sustainable world.
Further details concerning the Group's second-quarter 2026 results are provided in the "Second-quarter 2026 results and outlook" presentation and the "Factsheet", both available on Arkema's website at: www.arkema.com/global/en/investor-relations/
REGULATORY INFORMATION
The half-year financial report for the six months ended 30 June 2026 is available on the Group’s website (www.arkema.com) under Investors/Financials/Financial results.
FINANCIAL CALENDAR
5 November 2026: Publication of third-quarter 2026 results
25 February 2027: Publication of full-year 2026 results
DISCLAIMER
The information disclosed in this press release may contain forward-looking statements with respect to the financial position, results of operations, business and strategy of Arkema.
In a context of significant geopolitical tensions, where the outlook for the global economy remains uncertain, the retained assumptions and forward-looking statements could ultimately prove inaccurate. Such statements are based on management's current views and assumptions that could ultimately prove inaccurate and are subject to risk factors such as changes in raw materials prices, currency fluctuations, and the pace at which cost-reduction projects are implemented, escalating geopolitical tensions, and changes in general economic and financial conditions. Arkema does not assume any liability to update such forward-looking statements whether as a result of any new information or any unexpected event or otherwise. Further information on factors which could affect Arkema's financial results is provided in the documents filed with the French Autorité des marchés financiers.
Balance sheet, income statement and cash flow statement data, as well as data relating to the statement of changes in shareholders' equity and information by segment included in this press release are extracted from the condensed consolidated interim financial statements at 30 June 2026, as approved by Arkema's Board of Directors on 29 July 2026. Quarterly financial information is not audited. Information by segment is presented in accordance with Arkema's internal reporting system used by management.
Unless otherwise stated, amounts disclosed in the tables are presented in millions of euros, rounded naturally to one decimal. Slight differences may appear between calculations performed using these rounded amounts and the totals and percentages shown. Data relating to the year 2025 are now presented using this new format and may therefore show minor non-material differences compared with previously published figures.
Definitions and concordance tables for the main alternative performance indicators used by the Group are provided in Notes 6 and 8 to the consolidated financial information at the end of June 2026 provided at the end of this document.
For the purpose of tracking changes in its results, and particularly its sales figures, the Group analyzes the following effects (unaudited analyses):
- scope effect: the impact of changes in the Group's scope of consolidation, which arise from acquisitions and divestments of entire businesses or as a result of the first-time consolidation or deconsolidation of entities. Increases or reductions in capacity are not included in the scope effect;
- currency effect: the mechanical impact of consolidating accounts denominated in currencies other than the euro at different exchange rates from one period to another. The currency effect is calculated by applying the foreign exchange rates of the prior period to the figures for the period under review;
- price effect: the impact of changes in average selling prices is estimated by comparing the weighted average net unit selling price of a range of related products in the period under review with their weighted average net unit selling price in the prior period, multiplied, in both cases, by the volumes sold in the period under review; and
- volume effect: the impact of changes in volumes is estimated by comparing the quantities delivered in the period under review with the quantities delivered in the prior period, multiplied, in both cases, by the weighted average net unit selling price in the prior period.
Building on its unique set of expertise in materials science, Arkema offers a portfolio of first-class technologies to address ever-growing demand for new and more sustainable materials. With the ambition to become a world leader in Specialty Materials, the Group is structured into three complementary, resilient and highly innovative segments dedicated to Specialty Materials - Adhesive Solutions, Advanced Materials, and Coating Solutions - accounting for some 85% of Group sales in 2025, and a Primary Materials segment regrouping well-positioned large scale industrials activities. Arkema offers cutting-edge technological solutions to meet the challenges of, among other things, new energies, access to water, recycling, urbanization and mobility, and fosters a permanent dialogue with all its stakeholders. The Group reported sales of around €9.1 billion in 2025 and operates in some 55 countries with 20,700 employees worldwide.
ARKEMA financial statements
Consolidated financial information - At the end of June 2026
Half-year information is subject to a limited review by auditors.
Consolidated financial statements as of December 2025 have been audited.
Unless otherwise stated, amounts disclosed in the tables are presented in millions of euros, rounded naturally to one decimal. Slight differences may appear between calculations performed using these rounded amounts and the totals and percentages shown. Data relating to the year 2025 is now presented using this new format and may therefore show minor non-material differences with previously published figures.
| 1. CONSOLIDATED INCOME STATEMENT | ||
| Q2 2026 | Q2 2025 | |
| (In millions of euros) | ||
| Sales | 2,427.8 | 2,395.5 |
| Operating expenses | (1,942.6) | (1,940.3) |
| Research and development expenses | (71.3) | (71.4) |
| Selling and administrative expenses | (226.2) | (220.5) |
| Other income and expenses | (46.3) | (47.4) |
| Operating income | 141.4 | 116.0 |
| Equity in income of affiliates | 0.1 | 0.2 |
| Financial result | (34.8) | (33.4) |
| Income taxes | (37.6) | (35.7) |
| Net income | 69.1 | 47.1 |
| Attributable to non-controlling interests | 3.4 | (0.1) |
| Net income - Group share | 65.7 | 47.2 |
| Earnings per share (amount in euros) | 0.64 | 0.62 |
| Diluted earnings per share (amount in euros) | 0.64 | 0.62 |
| H1 2026 | H1 2025 | |
| (In millions of euros) | ||
| Sales | 4,609.6 | 4,776.3 |
| Operating expenses | (3,740.3) | (3,879.8) |
| Research and development expenses | (142.2) | (142.3) |
| Selling and administrative expenses | (454.8) | (466.6) |
| Other income and expenses | (57.3) | (69.0) |
| Operating income | 215.1 | 218.6 |
| Equity in income of affiliates | 0.2 | 0.4 |
| Financial result | (63.8) | (57.7) |
| Income taxes | (54.3) | (64.0) |
| Net income | 97.3 | 97.3 |
| Attributable to non-controlling interests | 4.4 | 0.9 |
| Net income - Group share | 92.9 | 96.4 |
| Earnings per share (amount in euros) | 0.69 | 0.96 |
| Diluted earnings per share (amount in euros) | 0.69 | 0.96 |
| 2. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | ||
| Q2 2026 | Q2 2025 | |
| (In millions of euros) | ||
| Net income | 69.1 | 47.1 |
| Hedging adjustments | (4.5) | 11.1 |
| Other items | 0.1 | (0.1) |
| Deferred taxes on hedging adjustments and other items | (1.5) | 0.5 |
| Change in translation adjustments | 45.7 | (320.5) |
| Other recyclable comprehensive income | 39.8 | (309.0) |
| Impact of remeasuring unconsolidated investments | 1.6 | 0.2 |
| Actuarial gains and losses | 3.1 | 2.9 |
| Deferred taxes on actuarial gains and losses | (1.0) | (0.8) |
| Other non-recyclable comprehensive income | 3.8 | 2.3 |
| Total other comprehensive income | 43.6 | (306.7) |
| Total comprehensive income | 112.7 | (259.6) |
| Attributable to non-controlling interest | 1.3 | (1.0) |
| Total comprehensive income - Group share | 111.3 | (258.6) |
| H1 2026 | H1 2025 | |
| (In millions of euros) | ||
| Net income | 97.3 | 97.3 |
| Hedging adjustments | 13.3 | 21.0 |
| Other items | 0.1 | 0.0 |
| Deferred taxes on hedging adjustments and other items | (0.7) | (0.1) |
| Change in translation adjustments | 117.0 | (522.5) |
| Other recyclable comprehensive income | 129.7 | (501.5) |
| Impact of remeasuring unconsolidated investments | 1.6 | (0.7) |
| Actuarial gains and losses | 11.4 | 10.6 |
| Deferred taxes on actuarial gains and losses | (2.0) | (1.0) |
| Other non-recyclable comprehensive income | 11.0 | 8.8 |
| Total other comprehensive income | 140.6 | (492.7) |
| Total comprehensive income | 237.9 | (395.4) |
| Attributable to non-controlling interest | (7.8) | (17.4) |
| Total comprehensive income - Group share | 245.7 | (378.1) |
Contacts
Investor relations contacts
Béatrice Zilm +33 (0)1 49 00 75 58 beatrice.zilm@arkema.com
James Poutier +33 (0)1 49 00 73 12 james.poutier@arkema.com
Alexis Noël +33 (0)1 49 00 74 37 alexis.noel@arkema.com
Franck Zhang +33 (0)1 49 00 72 08 franck.zhang@arkema.com
Media contacts
Gilles Galinier +33 (0)1 49 00 70 07 gilles.galinier@arkema.com
Anne Plaisance +33 (0)6 81 87 48 77 anne.plaisance@arkema.com
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