Second-quarter 2026 results

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.”

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.