Arkema S.a. (adr) Stock Earnings Reports

Arkema reported Q1 2026 revenues of EUR 2.2 billion (down 8.4% y/y) with volumes broadly stable year‑on‑year and a stronger finish in March. Q1 EBITDA was EUR 283 million, impacted by a ~EUR 20 million negative currency effect (weaker USD) and lower selling price environment; EBITDA improved sequentially (+14% vs Q4 2025) but was down year‑on‑year. Specialty Materials drove the volume performance (+1.5% for the segment), with strong growth in high‑growth end markets (batteries, sport, 3D printing, healthcare) and particularly solid PIAM results (EBITDA +30% y/y in local currency, 35% EBITDA margin). Coating Solutions improved margins (up 100 bps) and Adhesive Solutions showed sequential improvement; Primary Materials was slightly up y/y, helped by legacy U.S. refrigerants while acrylics remained weak early in the quarter but are expected to see spread improvement in Q2. Management is taking cost control measures and expects FY CapEx of around EUR 600 million (Q1 CapEx EUR 75 million). The company is actively managing raw material, energy and logistics price increases following the Middle East conflict, with price actions initiated and cost impacts expected to become visible in Q2. Key growth projects remain on track (U.S. PVDF start‑up mid‑year; additional PVDF expansion in China announced; Rilsan Clear unit in Singapore ramping). Net debt including hybrid bonds was EUR 3.3 billion at end‑March (net debt / LTM EBITDA 2.8x). Management confirmed the 2026 objective of a slight EBITDA increase at constant exchange rates, while remaining cautious about geopolitical uncertainty and regional demand divergence (Asia stronger than Europe/US).