Arkema's volumes and financial performance held up well in the first quarter of 2025, in a broadly weak demand environment outside of Asia, which is progressing, and an uncertain geopolitical context.
- Sales of €2.4 billion, up by 1.7% year-on-year:
- Stable volumes (down 0.2%), supported by significant growth in High Performance Polymers and their dynamic of new businesses, notably in batteries, electronics and sports
- Contrasting trends by region with strong growth in Asia but broadly weak demand in Europe and North America
- Price effect limited to a negative 0.5%, in a broadly stable raw materials environment
- First benefit of the integration of Dow's laminating adhesives
- EBITDA of €329 million, slightly down compared with Q1’24 (€350 million), and EBITDA margin at 13.8%:
- Good resilience of Specialty Materials (93% of the Group’s sales) with a 3% EBITDA decrease
- Significant decline of nearly 40% in the EBITDA of Intermediates (7% of the Group’s sales), impacted by refrigerant gases
- Adjusted net income down at €99 million, representing €1.31 per share (€1.84 in Q1'24)
- Net debt and hybrid bonds of €3.4 billion at end-March 2025, representing 2.3x last-twelve-months EBITDA. Recurring cash flow at a negative €138 million, reflecting the seasonality of sales
Chairman and CEO Thierry Le Hénaff said:
“The global macroeconomic environment is currently marked by the strong uncertainty generated by the subject of tariffs and their consequences on demand, interest rates and exchange rates. In the first quarter, the Group’s performance was broadly resilient, supported notably by the significant growth of our activities in Asia and of High Performance Polymers. Our balanced geographical footprint, the recent acquisitions of PIAM and Dow’s laminating adhesives, and the progressive ramp-up of our major industrial investments made a positive contribution to the Group’s results.
In this context of limited visibility and slowdown in demand, Arkema will once again rely on its capacity to adapt and its agility, and will continue to strictly manage its operations with a strong emphasis on cost savings. In parallel, the Group will pursue its long-term innovation strategy centered on Specialty Materials by focusing notably on finalizing the projects currently in progress.”
Outlook
In a global economic environment that remains uncertain and marked by weak demand outside of Asia, Arkema will continue to rely on its geographical balance, the diversity of its end markets and its major growth projects and will continue its cost control actions, as well as the strict management of its operations.
Relying on its industrial footprint close to customers in the three major regions of the world, Arkema anticipates a limited direct impact from the recent increase in tariffs. Nevertheless, the Group will remain vigilant about their effect on the macroeconomic environment and the global demand, which is difficult to assess reliably at this stage.
In this context, the Group aims to achieve in 2025 an EBITDA at least equal to last year’s at constant exchange rates and a significantly increasing recurring cash flow of close to €600 million, unless a major slowdown in global growth occurs due to geopolitical disruptions. The second quarter is expected to be in relative continuity with the trends observed since the beginning of the year, with two specific points of attention on customer wait-and-see attitude linked to the announcements on tariffs and the evolution of exchange rates.
Arkema will also continue to implement its strategic roadmap unveiled at the Capital Markets Day in September 2023, notably its innovation efforts and the development of high performance solutions for a less carbon-intensive and more sustainable world, in partnership with its customers.
Further details concerning the Group's 2025 results are provided in the "First quarter 2025 results and outlook" presentation and the "Factsheet", both available on Arkema's website at: www.arkema.com/global/en/investor-relations/
Financial calendar
22 May 2025: Annual general meeting
31 July 2025: Publication of first-half 2025 results
7 November 2025: Publication of third-quarter 2025 results