Third-quarter 2024 results

High-level EBITDA margin and increase in third-quarter sales despite a macroenvironment remaining challenging, notably in Europe.

Sales of €2.4 billion, up by 2.9% year-on-year:
- Volumes up by 2.2% in an environment of global weak demand, particularly in Europe, while supported by certain markets such as energy, sports, healthcare and packaging
- Broadly stable price effect at a negative 0.2%, reflecting dynamic management of selling prices in a raw materials environment that has stabilized overall
EBITDA up by 5.4% to €407 million (€386 million in Q3'23), driven in particular by strong growth in Adhesive Solutions and Advanced Materials, and better resilience in the US and Asia
EBITDA margin up, reaching the high level of 17.0% (16.6% in Q3'23), reflecting the quality of the Group's positioning and technologies, its balanced geographical footprint, as well as strict management of its operations
Adjusted net income down slightly to €168 million, representing €2.25 per share (€2.38 in Q3'23)
Solid recurring cash flow of €190 million and net debt tightly controlled at €3.1 billion (including hybrid bonds), down from €3.3 billion at the end of June and representing 2.0x last twelve-months EBITDA
2024 guidance: As the rebound of the macroeconomic environment has not materialized yet, the Group is targeting for 2024 an EBITDA at the lower end of its guidance range of €1.53 billion.

Following Arkema’s Board of Directors’ meeting held on 5 November 2024 to review the Group’s consolidated financial information for the third quarter of 2024, Chairman and CEO Thierry Le Hénaff said:

“Arkema's Specialty Materials sales grew by 4% year-on-year despite a third quarter marked by a challenging environment, particularly in Europe. After an encouraging July, the end of the quarter was marked by weaker demand. I would like to congratulate our teams, whose efforts in this unfavorable environment have enabled the Group to achieve a strong financial performance. In particular, our EBITDA margin increased to reach 17%, showing our resilience and validating our strategy of focusing on Specialty Materials.

Over the coming months, we will be maintaining our efforts on strict management of costs, capital expenditure and working capital. We will also continue to progress on our major growth projects in order to start 2025 in the best possible position. We are also looking forward to welcoming Dow’s teams very soon, following the closing of the acquisition of the flexible packaging laminating adhesives business, expected by the end of the year, and which will mark a new chapter in Bostik's growth in high-performance adhesives.”

Outlook for 2024

With a still lackluster macroeconomic environment expected for the rest of the year, marked by limited visibility and a continued weak demand environment, the Group will focus on strictly managing its operating costs and optimizing its working capital in line with demand. In parallel, work on the longer term will continue, with the ongoing ramp-up of the organic projects, the closing of the acquisition of Dow's flexible packaging laminating adhesives business, as well as the first steps in the start-up of the HFO-1233zd fluorospecialties unit in the United States.

In this context, based on the results of the first nine months, Arkema expects to achieve in 2024 an EBITDA at the lower end of its guidance range of €1.53 billion.

Finally, the Group will continue to implement its strategic roadmap, leveraging its cutting-edge innovation, strengthening partnerships with its customers, and deploying its portfolio of technologies to support the development of solutions for a less carbon-intensive and more sustainable world.

Further details concerning the Group's third-quarter 2024 results are provided in the "Third-quarter 2024 results and outlook" presentation and the "Factsheet", both available on Arkema's website at: www.arkema.com/global/en/investor-relations/