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Press release Regulated information
Continued solid EBITDA margin and Free cash flow delivery, despite soft demand environment
Brussels, July 30, 2025, 7.00am CEST
Highlights
- Underlying net sales in Q2 2025 of EUR1,102 million were down -3.8% organically compared to Q2 2024 due to the soft market environment, impacted by ongoing tariff and geopolitical tensions. This resulted in a continued reduction of short term demand, particularly visible in certain soda ash and Coatis end-markets.
- Underlying EBITDA in Q2 2025 decreased year-on-year to EUR230 million, -12.4% organically compared to Q2 2024 which was the strongest quarter of last year. Q2 2025 was supported by a one-off gain of c. EUR20 million impacting both revenue and EBITDA resulting from the termination of a customer's contract in the Special Chem business unit (Performance Chemicals segment). Forex had a negative impact of EUR10 million in this quarter. The underlying EBITDA margin remained solid at 20.9%.
- Structural cost savings initiatives delivered EUR29 million in Q2 2025, bringing the cumulative savings to EUR55 million in 2025 and EUR165 million since the start of 2024.
- Underlying net profit from continuing operations was EUR99 million in Q2 2025 vs. EUR116 million in Q2 2024.
- Free Cash Flow amounted to EUR54 million in Q2 2025, bringing the H1 FCF to EUR97 million.
- Underlying Net Debt at EUR1.9 billion, implying a leverage ratio of 1.9x.
- 2025 outlook: as revised on July 14th, Solvay now expects underlying EBITDA to be between EUR880 million and EUR930 million and confirms its Free Cash Flow1 to be around EUR300 million, with a maximum of EUR300 million of Capex
Second quarter First half
Underlying (in EUR million) 2025 2024 % yoy % organic 2025 2024 % yoy % organic
Net sales 1,102 1,194 -7.8% -3.8% 2,223 2,396 -7.2% -4.8%
EBITDA 230 272 -15.4% -12.4% 480 538 -10.8% -9.1%
EBITDA margin 20.9% 22.8% -1.9pp 21.6% 22.5% -0.9pp
FCF1 54 120 -54.8% 97 246 -60.7%
ROCE 16.0% 17.6% -1.6pp
1Free Cash Flow (FCF) here is the free cash to Solvay shareholders from continuing operations.
Philippe Kehren, Solvay CEO
"The level of business activity in the first half of 2025 has been impacted by the uncertainty around the tariff discussions and heightened geopolitical tensions. Over the past few months, our industry has faced a soft market demand environment, and this is not expected to improve in the coming months. In this context, we downgraded our 2025 underlying EBITDA outlook to reflect current conditions, while confidently re-confirming our strong free cash flow guidance. This commitment to robust cash generation is fundamental to our financial policy, and our management team is dedicated to disciplined investments and optimized cash usage to ensure we meet our objectives."
2025 outlook
In the second quarter, Solvay experienced a continuation of the soft market environment, impacted by ongoing global tariff discussions and heightened geopolitical tensions. This led to a progressive reduction of demand, and a slowdown in order books, particularly in certain soda ash end-markets and in the Coatis business unit. Visibility remains low and market conditions are expected to remain challenging throughout the second half of 2025.
Based on this, Solvay has updated its 2025 outlook on July 14, 2025, as follows:
- Solvay now expects underlying EBITDA to be between EUR880 million and EUR930 million, assuming current FX levels for the second half.
- Solvay confirms its Free Cash Flow from continuing operations to Solvay shareholders to be around EUR300 million, with a maximum of EUR300 million of Capex, reflecting management's focus on cash generation and dividend cover.
Cost savings are now expected to exceed the previous indication of EUR200 million at the end of 2025.
Financial calendar
- November 6, 2025: Third quarter and first nine months 2025 earnings
- Link to Solvay's financial calendar
Details of analysts and investors conference call
- Time: July 30, 2025 - 2pm CEST
- Registration: register to the webcast here.
Contacts
Media relations Investor relations
Peter Boelaert Boris Cambon-Lalanne
+32 479 30 91 59 +32 471 55 37 49
Laetitia Van Minnenbruggen Geoffroy d'Oultremont
+32 484 65 30 47 +32 478 88 32 96
media.relations@solvay.com Vincent Toussaint
+33 6 74 87 85 65
investor.relations@solvay.com
About Solvay
Solvay, a pioneering chemical company with a legacy rooted in founder Ernest Solvay's pivotal innovations in the soda ash process, is dedicated to delivering essential solutions globally through its workforce of around 9,000 employees. Since 1863, Solvay has harnessed the power of chemistry to create innovative, sustainable solutions that answer the world's most essential needs such as purifying the air we breathe and the water we use, preserving our food supplies, protecting our health and well-being, creating eco-friendly clothing, making the tires of our cars more sustainable and cleaning and protecting our homes. Solvay's unwavering commitment drives the transition to a carbon-neutral future by 2050, underscoring its dedication to sustainability and a fair and just transition. As a world-leading company with EUR4.7 billion in underlying net sales in 2024, Solvay is listed on Euronext Brussels and Paris (SOLB). For more information about Solvay, please visit solvay.com or follow Solvay on Linkedin.
Safe harbor
This press release may contain forward-looking information. Forward-looking statements describe expectations, plans, strategies, goals, future events or intentions. The achievement of forward-looking statements contained in this press release is subject to risks and uncertainties relating to a number of factors, including general economic factors, interest rate and foreign currency exchange rate fluctuations, changing market conditions, product competition, the nature of product development, impact of acquisitions and divestitures, restructurings, products withdrawals, regulatory approval processes, all-in scenario of R&I projects and other unusual items. Consequently, actual results or future events may differ materially from those expressed or implied by such forward-looking statements. Should known or unknown risks or uncertainties materialize, or should our assumptions prove inaccurate, actual results could vary materially from those anticipated. The Company undertakes no obligation to publicly update or revise any forward-looking statements.
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