Arkema delivered a very solid cash flow generation supported by strong operational discipline, in a challenging environment that weighs on market demand and the Group’s results.
- Sales of €2.2 billion, down 4.7% compared to last year at constant exchange rates:
- Volumes down 2.5% reflecting the lower demand observed in the United States over the summer and the overall weakness in Europe, while Asia, in particular China, remains more resilient
- Strong momentum with ~20 % YoY sales growth in several specific key markets at the heart of our innovation strategy, namely batteries, sports, 3D printing, healthcare and new-generation fluorospecialties
- 3.7% negative price effect, impacted essentially by the acrylic cycle and the old-generation refrigerant gases, while all other activities have seen more stable prices
- EBITDA down to €310 million (€407 million in Q3’24) and EBITDA margin at 14.2%:
- Volumes in Adhesive Solutions and Advanced Materials reflecting weak demand in Europe and the United States but supported by the Group’s development strategy in higher value-added activities and by growth in Asia. Slightly negative net pricing with some benefit from lower raw material costs as they work through the supply chain.
- Coating Solutions significantly down, impacted by the acrylic cycle and the sales decline in the US construction market
- Seasonal decrease in refrigerant gases
- Unfavorable currency impact of around €15 million, mainly linked to the US dollar
- Adjusted net income of €78 million representing €1.04 per share (€2.25 in Q3'24)
- Very solid cash generation with a recurring cash flow of €207 million, higher than last year, reflecting the strict management of working capital and lower capex than last year
- Net debt down by almost €200 million in the quarter to €3.4 billion (including hybrid bonds). Issuance of a €500 million green bond with an 8-year maturity and a 3.5% coupon.
- Strengthening of our cost-cutting efforts:
- Objective to broadly offset fixed costs inflation in 2025 and 2026 with a large number of initiatives ramping up across all functions and business lines
- Further reduction in capex to around €600 million in 2026, representing a decrease of approximately €50 million compared to 2025 and €150 million compared to 2024
- 2025 guidance: taking into account the currently challenging macroeconomic context and the softer than expected demand in the United States, the Group aims at delivering an EBITDA of between €1.25 billion and €1.3 billion and a recurring cash flow of approximately €300 million in 2025.
Chairman and CEO Thierry Le Hénaff said:
"I would like to warmly thank the Arkema teams, whose commitment and professionalism allow us to successfully operate on two levels. On the one hand, we tightly manage costs, capex and working capital to optimize 2025 and be well prepared for 2026. And at the same time, we are following our growth strategy, by strengthening our customer intimacy, delivering our innovation and leveraging our technological platforms in our 5 key high-growth markets. In this respect, I am pleased to announce the launch of a One Arkema platform dedicated to data centers where we have significant growth prospects, and which will reinforce the existing offering in the attractive advanced electronics market.
We are fully convinced that we have all the necessary assets, notably thanks to our recent investments, to benefit from better times of the world economy and capture the numerous opportunities driven by megatrends, which will continue to drive the growth. In the short term, all the teams are fully mobilized on a daily basis to manage the current economic and geopolitical context.”
Outlook
In a global context that remains marked by limited visibility, geopolitical tensions, the increase in tariffs and a weak demand environment, the Group continues to prioritize working on the elements under its control, focusing on strictly managing its operating costs, its capital expenditure and its working capital.
Arkema has thus launched a large number of initiatives ramping up across all functions and business lines to optimize and streamline its activities with the objective to broadly offset fixed costs inflation in 2025 and 2026. For this year, the Group confirms its objective of around €100 million of savings in fixed and variable costs.
At the same time, Arkema is continuing to implement its strategic roadmap on Specialty Materials, notably with the ramp-up of its major projects, for the most part already funded. Their additional contribution to the Group’s EBITDA has been reassessed for the year at around €60 million, factoring in particular the growth of PVDF in batteries, Pebax® in sports, 1233zd in thermal insulation for buildings and PIAM in advanced electronics, as well as the first contribution from Dow's flexible packaging laminating adhesives business.
Taking into account the currently challenging macroeconomic context and the softer than expected demand in the United States, the Group aims at delivering an EBITDA of between €1.25 billion and €1.3 billion and a recurring cash flow of approximately €300 million in 2025.
Further details concerning the Group’s third-quarter 2025 results are provided in the “Third-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
26 February 2026: Publication of full-year 2025 results
6 May 2026: Publication of first-quarter 2026 results