Solvay advances its strategic transformation, while navigating the challenging environment
Highlights
New step to support the growth of Solvay's rare earths business, with long-term feedstock supply agreement with Viridis, while discussions with OneIM continue to progress.
Underlying net sales in Q3 2026 reached €1,031 million, down -3.3% organically versus Q3 2025, reflecting the negative impact of the Middle East conflict on Solvay’s operations and the continued weakness in the soda ash market.
Underlying EBITDA amounted to €173 million with a margin of 16.8%, down -26.6% organically versus Q3 2025. The year-on-year decline is driven by a c. €-25 million impact from the conflict in the Middle East and by the c. €40 million proceeds from the sale of CO2 emissions rights in Q3 2025.
Structural cost savings initiatives delivered another €25 million in Q3 2026, bringing savings since the start of the program to €283 million, on track to reach the target of €300 million by end of 2026.
Underlying net profit from continuing operations was €35 million in Q3 2026 vs. €90 million in Q3 2025.
Free cash flow1 for the first nine months of 2026 amounted to €70 million (€54 million in Q3 2026). Capex for 9M reached €203 million.
The Board of Directors approved the payment of an interim dividend of €0.97 gross per share, stable compared to last year, payable on Jan. 20, 2027.
Underlying Net Debt at €1.8 billion, implying a leverage ratio of 2.4x at the end of September 2026.
2026 outlook: as revised on October 19th, Solvay now expects its underlying EBITDA to be between €720 million and €740 million and its Free Cash Flow1 to be between €120 million and €150 million (net of transformation expenses).
Underlying key figures
(in € million) | Q3 2026 | Q3 2025 | % yoy | % organic | 9M 2026 | 9M 2025 | % yoy | % organic |
|---|---|---|---|---|---|---|---|---|
Net sales | 1,031 | 1,044 | -1.3% | -3.3% | 3,059 | 3,267 | -6.4% | -6.4% |
EBITDA | 173 | 232 | -25.3% | -26.6% | 579 | 712 | -18.7% | -18.6% |
EBITDA margin | 16.8% | 22.2% | -5.4pp |
| 18.9% | 21.8% | -2.9pp |
|
FCF | 54 | 117 | -53.7% |
| 70 | 214 | -67.5% |
|
ROCE |
|
|
|
| 11.0% | 15.4% | -4.4pp |
|
“We continue to navigate a challenging economic environment. The conflict in the Middle East is having a significant impact on Solvay operations, with the temporary shutdown of our Peroxides plant in Jubail materially affecting the company’s short-term performance, as reflected in our updated guidance. In this context, Solvay remains focused on executing its transformation, actively managing and strengthening its portfolio to position the company for long-term growth.
With our long-term supply agreement with Viridis, we strengthen our position in rare earths separation and establish a new value chain down to the customers. This is a concrete step that will allow our plant in La Rochelle to unlock future growth opportunities.
2026 Outlook
The conflict in the Middle East continues to weigh on the underlying EBITDA of the company, with an impact of €-20 million in Q2 2026 and €-25 million in Q3 2026. This is primarily driven by the continued suspension of the Peroxide plant operations at the Sadara complex in Jubail, Saudi Arabia, which accounted for close to €-15 million both in Q2 and in Q3 2026.
As communicated on October 19, 2026, excluding potential revenue or recovery measures from Sadara for the remainder of 2026, the guidance for 2026 is:
Underlying EBITDA between €720 million and €740 million
Free Cash Flow from continuing operations to Solvay shareholders between €120 million and €150 million, net of c. €90 million of transformation expenses
Capital expenditure below €300 million, including the strategic investments of €15-20 million announced in July to expand rare earth separation capacity at the La Rochelle site
Cumulated structural cost savings on track to reach €300 million at the end of 2026
Solvay’s operations in Jubail are conducted through a joint venture with Sadara (which is a joint venture majority-owned by Saudi Aramco). Solvay is exploring all available avenues to mitigate the financial impact of the temporary shutdown, as the joint venture contractual framework includes mechanisms designed to recover lost profitability.
Rare earths developments
As previously disclosed, Solvay continues to progress its discussions with OneIM, a global investment fund with critical mineral investments. If such discussions lead to a definitive agreement, Solvay would contribute its rare earths activities to a newly formed joint venture while retaining a significant minority ownership interest. The Solvay perimeter under consideration generates approximately €80 million of underlying EBITDA on an annual basis.
Separately, Solvay signed a long-term supply agreement with Viridis, securing strategic rare earth feedstock beginning in 2028 and reinforcing the resilience and integration of its future rare earths supply chain.
Dividend
The Board has decided to pay an interim gross dividend of €0.97 gross per share. This represents 40% of the 2025 total dividend (€2.43 per share), which is in line with its dividend policy and historical practices.
Financial performance
Underlying key figures
(in € million) | Q3 2026 | Q3 2025 | % yoy | 9M 2026 | 9M 2025 | % yoy |
|---|---|---|---|---|---|---|
Net sales | 1,031 | 1,044 | -1.3% | 3,059 | 3,267 | -6.4% |
EBITDA | 173 | 232 | -25.3% | 579 | 712 | -18.7% |
EBITDA margin | 16.8% | 22.2% | -5.4pp | 18.9% | 21.8% | -2.9pp |
EBIT | 99 | 155 | -35.8% | 355 | 477 | -25.5% |
Net financial charges | -40 | -32 | -26.1% | -109 | -95 | -14.6% |
Income tax expenses | -24 | -33 | +26.3% | -69 | -91 | +24.2% |
Tax rate |
|
|
| 28.4% | 24.0% | +4.4pp |
Profit from continuing operations | 35 | 90 | -61.0% | 178 | 291 | -39.0% |
Profit / (loss) from discontinued operations | - | - | n.m. | - | - | n.m. |
(Profit) / loss attributable to non-controlling interests | -2 | -3 | -41.1% | -5 | -8 | -29.3% |
Profit / (loss) attributable to Solvay shareholders | 34 | 88 | -61.7% | 172 | 284 | -39.2% |
Basic earnings per share (in €) | 0.32 | 0.84 | -61.7% | 1.65 | 2.72 | -39.3% |
of which from continuing operations | 0.32 | 0.84 | -61.7% | 1.65 | 2.72 | -39.3% |
Capex in continuing operations | 62 | 81 | -24.0% | 203 | 214 | -5.3% |
FCF to Solvay shareholders from continuing operations | 54 | 117 | -53.7% | 70 | 214 | -67.5% |
Net financial debt | 1,792 | 1,748 | - | 1,792 | 1,748 | +2.5% |
Underlying leverage ratio | 2.4 | 1.8 | +32.7% | 2.4 | 1.8 | +32.7% |
ROCE (continuing operations) |
|
|
| 11.0% | 15.4% | -4.4pp |
Group performance
Underlying net sales of €1,031 million for the quarter were lower by -1.3% versus the third quarter of 2025 (-3.3% organically), with a positive forex impact (+2.1%), lower volumes (-5.2%) and slightly positive pricing (+1.8%). Volumes were lower year-on-year mostly in Peroxides (Jubail plant shutdown) and soda ash. Positive pricing during the quarter was mainly the result of the significant year-on-year improvement at Coatis, and price increases at Special Chem and Silica.
Underlying EBITDA of €173 million in Q3 2026 was down -25.3% (-26.6% organically). Performance was affected by the ongoing conflict in the Middle East, which had a negative impact of approximately €-25 million on the underlying EBITDA in Q3 2026, primarily due to the continued suspension of the Peroxides plant operations at the Sadara complex in Jubail, Saudi Arabia, (c. €-15 million impact). Volumes were down -27.8%, a significant year-on-year decline mainly explained by lower Peroxides and by the sale of CO2 emission rights in Q3 2025. Net pricing was down (-12.7%), due to significantly increased variable costs across the different businesses, only partially compensated by price increases and cost savings. Fixed costs contributed positively to the EBITDA variation (+4.8%), thanks to operational savings more than offsetting inflation. The underlying EBITDA margin declined to 16.8%, -5.4pp year-on-year.
Free cash flow to shareholders from continuing operations amounted to €54 million in Q3 2026, with Capex of €-62 million and €-26 million of Working Capital variation. Cash outflows from Provisions amounted to €-46 million. The Free cash flow in Q3 2026 benefitted from a settlement with an insurer in relation to a former Solvay business, leading to a €28 million one-off gain for Solvay. In the first nine months; free cash flow to shareholders from continuing operations amounted to €70 million.
Underlying net financial debt was €1.8 billion at the end of Q3 2026, increasing by €195 million compared to the end of 2025, mainly from dividend payments outflows (€254 million), partly offset by positive free cash flow generation. The underlying leverage ratio was 2.4x at the end of Q3 2026.
Provisions decreased slightly to €1.3 billion at the end of Q3 2026 and included €590 million of employee benefits (primarily pensions) and €529 million of environmental provisions.
Performance by segment
Key segment figures (Underlying)
|
| |||||||
|---|---|---|---|---|---|---|---|---|
(in € million) | Q3 2026 | Q3 2025 | % yoy | % organic | 9M 2026 | 9M 2025 | % yoy | % organic |
Net sales | 1,031 | 1,044 | -1.3% | -3.3% | 3,059 | 3,267 | -6.4% | -6.4% |
Basic Chemicals | 609 | 655 | -7.1% | -8.4% | 1,840 | 1,995 | -7.8% | -7.5% |
Soda Ash & Derivatives | 398 | 427 | -6.8% | -7.5% | 1,198 | 1,307 | -8.3% | -7.7% |
Peroxides | 211 | 228 | -7.7% | -10.0% | 641 | 688 | -6.7% | -6.9% |
Performance Chemicals | 422 | 389 | +8.6% | +5.1% | 1,219 | 1,273 | -4.2% | -4.9% |
Silica | 133 | 121 | +9.2% | +7.3% | 392 | 399 | -1.7% | -0.9% |
Coatis | 138 | 116 | +19.1% | +10.6% | 384 | 373 | +3.0% | -1.9% |
Special Chem | 152 | 152 | +0.1% | -1.1% | 443 | 501 | -11.6% | -10.4% |
Corporate | - | - |
|
| - | - |
| -97.8% |
EBITDA | 173 | 232 | -25.3% | -26.6% | 579 | 712 | -18.7% | -18.6% |
Basic Chemicals | 123 | 151 | -18.6% | -20.0% | 386 | 454 | -15.0% | -14.5% |
Performance Chemicals | 72 | 59 | +22.2% | +17.3% | 234 | 257 | -8.9% | -9.2% |
Corporate | -22 | 22 | n.m. | n.m | -41 | 1 | n.m. | n.m |
EBITDA margin | 16.8% | 22.2% | -5.4pp |
| 18.9% | 21.8% | -2.9pp |
|
Basic Chemicals | 20.2% | 23.1% | -2.8pp |
| 21.0% | 22.8% | -1.8pp |
|
Performance Chemicals | 17.1% | 15.2% | +1.9pp |
| 19.2% | 20.2% | -1.0pp |
|
Basic Chemicals
Basic Chemicals sales in Q3 2026 were down -7.1% (-8.4% organically) compared to Q3 2025, with a slightly positive currency impact (+1.4%), lower volumes (-6.8%) and a slight negative price impact (-1.6%).
Soda Ash & Derivatives sales for the quarter were lower by -6.8% (-7.5% organically) compared to Q3 2025.
Soda ash volumes were slightly down but pricing rather steady in domestic markets while on seaborne markets volumes were flat but pricing is down year-on-year. The bicarbonate business remained very steady year-on-year.
Peroxides sales for the quarter decreased by -7.7% (-10.0% organically) compared to Q3 2025, impacted by lower volumes due to the temporary suspension of operations at the HPPO site in Jubail, Saudi Arabia. This decrease was partly offset by continued strong growth in electronic grades.
The segment underlying EBITDA declined by -18.6% (-20.0% organically), reflecting lower volumes following the shutdown of the Peroxides site in Saudi Arabia, continued pricing pressure and limited phasing in energy indexation mechanism in Soda Ash & Derivatives. The EBITDA margin reached 20.2%, -2.8pp versus Q3 2025.
Performance Chemicals
Performance Chemicals sales in Q3 2026 were up +8.6% (+5.1% organically) compared to Q3 2025, with positive scope and conversion impact (+3.3%), lower volumes (-2.4%) and higher prices (+7.7%).
Silica sales for the quarter increased by +9.2% (+7.3% organically). The increase primarily reflects the price impact from the pass-through of the significant rise in raw materials cost experienced during the second quarter while volumes were stable year-on-year.
Coatis sales for the quarter were up by +19.1% (+10.6% organically), driven mainly by higher pricing across the phenol and solvents product lines while volumes were broadly stable year-on-year.
Special Chem sales for the quarter were rather flat at +0.1% (-1.1% organically). Lower volumes in autocatalysis were partially offset by strong Fluorine demand in North America and in electronic rare earths applications. Prices increased year-on-year, driven by cost increases.
The segment underlying EBITDA increased by +22.2% (+17.3% organically), thanks to higher pricing partially offset by lower volumes. The EBITDA margin increased +1.9pp year-on-year to 17.1%.
Corporate
For Q3 2026, the corporate segment underlying EBITDA was €-22 million (compared to €22 million in Q3 2025). The year-on-year variation mainly reflects the c. €40 million gain from the sale of CO2 emissions rights recorded in Q3 2025.
More information, including the condensed consolidated interim financial statements, notes, reconciliation of the APM and definitions, can be found in the financial report (prepared in accordance with article 11 of the Royal Decree of 14 November 2007), which is available on Solvay’s website.
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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 8,400 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 €4.3 billion in underlying net sales in 2025, Solvay is listed on Euronext Brussels and Paris (SOLB). For more information about Solvay, please visit solvay.com or follow Solvay on LinkedIn.
This press release may contain forward-looking information. Forward-looking statements describe expectations, plans, strategies, goals, future events or intentions. Discussions with One IM described in this press release remain ongoing and there can be no assurance that these discussions will result in a definitive agreement or that any transaction will be consummated. 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.