Arkema Q3 2025 Financial Results
- Sales reached €2.2 billion, down 4.7% YoY, with volumes down 2.5% and a 3.7% negative price effect.
- EBITDA fell to €310 million, with a margin of 14.2%, impacted by weak demand and unfavorable currency effects.
- Net debt decreased by €200 million to €3.4 billion, including a €500 million green bond issuance.
- Arkema aims for €1.25-1.3 billion EBITDA and €300 million recurring cash flow in 2025.
Financial Performance
Arkema's Q3 2025 sales totaled €2.2 billion, a 4.7% decrease at constant exchange rates. Volumes declined by 2.5%, with notable weakness in the U.S. and Europe, while Asia, particularly China, showed resilience. The company experienced a 3.7% negative price effect, mainly due to the acrylic cycle and old-generation refrigerant gases.
EBITDA and Net Income
EBITDA dropped to €310 million from €407 million in Q3 2024, with a margin of 14.2%. The decline was influenced by weak demand in Europe and the U.S., despite growth in Asia. Adjusted net income was €78 million, equating to €1.04 per share, down from €2.25 per share in Q3 2024.
Cash Flow and Debt
Arkema generated a recurring cash flow of €207 million, surpassing last year's figures due to strict working capital management and reduced capex. Net debt decreased by nearly €200 million to €3.4 billion, including the issuance of a €500 million green bond with an 8-year maturity and a 3.5% coupon.
Cost-Cutting and Future Outlook
The company is intensifying cost-cutting efforts to offset fixed costs inflation in 2025 and 2026, with a target of €100 million in savings for the current year. Capex is projected to reduce to around €600 million in 2026. Arkema aims for an EBITDA of €1.25-1.3 billion and a recurring cash flow of approximately €300 million in 2025, considering the challenging macroeconomic environment and softer demand in the U.S.
Source: Arkema