Resilient performance supported by a diversified portfolio and cost savings
Brussels, May 8, 2025, 7.00am CEST
Highlights
Underlying net sales in Q1 2025 of €1,122 million were down -5.8% organically compared to Q1 2024. Uncertainties on the macro-environment led customers to be more cautious in the second part of the quarter, creating some softness in Soda Ash, particularly in March. Most of the other businesses showed resilient performance.
Underlying EBITDA in Q1 2025 decreased year-on-year to €250 million (-5.7% organically) compared to Q1 2024, with 22.3% underlying EBITDA margin. It was supported by a one-off gain of c. €10 million on the favorable outcome of a patent dispute in Performance Chemicals.
Structural cost savings initiatives delivered €27 million in Q1 2025, bringing the cumulative savings to €137 million since the start of 2024.
Underlying net profit from continuing operations was €102 million in Q1 2025 vs. €119 million in Q1 2024.
Free Cash Flow amounted to €42 million in Q1 2025, in line with normal seasonality, including Capex of €-70 million.
Underlying Net Debt at €1.7 billion, implying a leverage ratio of 1.7x.
2025 outlook confirmed: underlying EBITDA currently expected to reach the lower half of the guidance range; free cash flow1 guidance of €300 million confirmed
Underlying (in € million)
Q1 2025
Q1 2024
% yoy
% organic
Net sales
1,122
1,201
-6.6%
-5.8%
EBITDA
250
265
-5.9%
-5.7%
EBITDA margin
22.3%
22.1%
+0.2pp
-
FCF1
42
126
-66.5%
-
ROCE
17.2%
19.8%
-2.7pp
-
1 Free Cash Flow (FCF) here is the free cash to Solvay shareholders from continuing operations.
Philippe Kehren, Solvay CEO
“The current macro-environment is uncertain and filled with challenges that were not foreseen at the start of the year. However, our resilient global and local to local business model will allow us to navigate these challenges.
Our focus in the short-term is clear: accelerating the transformation of the company and disciplined spending to optimize cash generation. And I am pleased to see the ongoing progress in these areas, driven by our teams worldwide.
I have every confidence in the ability of the Solvay team to succeed in the current environment and continue to deliver for all our stakeholders.”
2025 outlook
The current demand environment is uncertain but the essential nature of its businesses makes Solvay resilient. The company expects the second quarter underlying net sales to be sequentially stable compared to Q1 2025, while underlying EBITDA would be sequentially down as Q1 included a one-off gain of c. €10 million and as Q2 will start to see an increase of the temporary stranded costs from the exit of the Transition Service Agreement with Syensqo.
Solvay confirms the 2025 guidance as follows:
Underlying EBITDA: €1.0 billion to €1.1 billion; Solvay currently expects to reach the lower half of the range (should current market conditions and currency exchange rates continue to prevail)
Cost savings: €200 million by the end of 2025
Free cash flow to Solvay shareholders from continuing operations: around €300 million in 2025, of which the majority will be delivered in the second half of the year due to normal seasonality
Capex: around €300 million, down from “between €300 million to €350 million”
Solvay is exposed to different currencies. We estimate that the average annual currency translation impact on underlying EBITDA is €15 million per 5 USD cents movement and €5 million per 25 BRL cents movement.
Financial calendar
May 13, 2025: Ordinary General Shareholders’ Meeting
May 19, 2025: final dividend: ex-date (subject to the approval of the Shareholders meeting)
May 21, 2025: final dividend: payment date (subject to the approval of the Shareholders meeting)
July 30, 2025: Second quarter and first half year 2025 earnings
November 6, 2025: Third quarter and first nine months 2025 earnings
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 9,000 employees. Since 1863, Solvay harnesses 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 €4.7 billion in underlying net sales in 2024, Solvay is listed on Euronext Brussels and Paris (SOLB). For more information about Solvay, please visit solvay.com or follow Solvay on Linkedin.
Safe harbor
This press release may contain forward-looking information. Forward-looking statements describe expectations, plans, strategies, goals, future events or intentions. 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.
