Stock Markets February 26, 2026

Arkema posts mixed Q4 results, flags modest 2026 EBITDA growth in constant currency

Specialty chemicals group misses consensus on quarterly EBITDA while Intermediates outperforms; FX headwinds to largely offset planned growth next year

By Derek Hwang
Arkema posts mixed Q4 results, flags modest 2026 EBITDA growth in constant currency

Arkema reported adjusted EBITDA of €248 million for Q4 2025, slightly below analyst and consensus expectations, with group sales of €2.105 billion affected by price, volume and currency headwinds. Performance varied across divisions, with Intermediates beating forecasts while Advanced Materials, Adhesive Solutions and Coating Solutions fell short. The company expects only slight EBITDA growth in 2026 on a constant currency basis and saw no improvement in demand at the start of the year.

Key Points

  • Q4 2025 adjusted EBITDA was €248 million, 1% below analyst estimates and 3% below consensus; group sales were €2.105 billion, down 3.7% organically with price declines of 1.6% and volume decreases of 2.1%. - Sectors impacted: specialty chemicals, industrials, manufacturing.
  • Intermediates outperformed with €46 million adjusted EBITDA and 13.2% organic sales growth to €175 million, while Advanced Materials, Adhesive Solutions and Coating Solutions missed estimates and experienced organic sales declines. - Sectors impacted: materials manufacturing, coatings and adhesives markets.
  • Arkema expects slight EBITDA growth for fiscal 2026 on a constant currency basis, noting foreign exchange effects will largely offset growth initiatives; prior year EBITDA was €1.25 billion and analyst estimates were €1.33 billion.

Arkema SA reported mixed fourth-quarter results on Thursday, delivering adjusted EBITDA of €248 million for Q4 2025 - a figure that came in 1% below analyst estimates and 3% under consensus expectations.

Group sales for the quarter were €2.105 billion. On an organic basis, sales declined 3.7% as price reductions of 1.6% combined with volume declines of 2.1%. Currency effects further weighed on reported revenue, reducing sales by 2.9%.


Division-level performance

The company highlighted a split across its business units.

  • Intermediates outperformed. Adjusted EBITDA for the unit reached €46 million, beating estimates by 35%. Organic sales in the segment rose 13.2% to €175 million, driven by price increases of 6.3% and volume gains of 6.9%.
  • Advanced Materials fell short. Adjusted EBITDA was €113 million, 9% below analyst projections. Margins for the segment contracted by 510 basis points year-on-year. Sales were €820 million, down 1.8% on an organic basis.
  • Adhesive Solutions delivered adjusted EBITDA of €70 million, roughly 1% below forecasts. Segment sales were €631 million, a 3.8% organic decline.
  • Coating Solutions recorded adjusted EBITDA of €32 million, 2% under estimates, while organic sales decreased 11.9% to €472 million.

Outlook and cash flow

For fiscal year 2026 the company guided to only slight EBITDA growth in constant currency terms. Prior year EBITDA stood at €1.25 billion. Arkema said foreign exchange impacts would largely offset its growth initiatives; analyst estimates referenced in the release stood at €1.33 billion.

The company reported no improvement in demand conditions entering the first quarter.

Operating cash flow for Q4 was €549 million, compared with €482 million in the same period a year earlier. Free cash flow reached €269 million versus €148 million in the prior-year quarter.

On the balance sheet, net debt including hybrid bonds totaled €3.17 billion, equivalent to 2.5 times net debt to EBITDA. The company declared a dividend of €3.6 per share.


What this means

Arkema's quarterly results show uneven momentum across its portfolio: Intermediates posted notable outperformance while several other segments missed expectations and experienced organic sales declines. The firm expects only modest EBITDA growth next year in constant currency, with foreign exchange movements cited as largely offsetting growth plans. Cash generation strengthened year-on-year for the quarter, and net leverage remained at a multiple of 2.5 on the company basis reported.

Risks

  • Foreign exchange headwinds are identified by the company as a factor that will largely offset growth initiatives, introducing uncertainty to reported EBITDA and revenues. - Affected sectors: corporate finance, specialty chemicals.
  • Demand conditions showed no improvement into the first quarter, which poses a risk to near-term sales and margins across multiple divisions. - Affected sectors: manufacturing and industrial demand-sensitive markets.
  • Several core divisions missed analyst expectations and faced organic sales declines, signaling potential operational or market risks for revenue and margin recovery. - Affected sectors: coatings, adhesives, advanced materials.

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