Stock Markets August 4, 2026 02:39 AM

Synthomer lifts 2026 guidance after H1 revenue climbs 6.7%

Speciality polymers firm posts positive adjusted EPS, upgrades full-year outlook while flagging temporary volume tailwind in Health & Protection

By Caleb Monroe
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Synthomer reported H1 revenue of £954.30 million, a year-on-year increase of 6.7%, and upgraded its full-year 2026 outlook to slightly ahead of market expectations. Adjusted earnings per share turned positive at £0.22 and adjusted pretax profit exceeded estimates, although the group recorded an overall pretax loss and negative free cash flow for the half.

Synthomer lifts 2026 guidance after H1 revenue climbs 6.7%
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Key Points

  • H1 revenue rose 6.7% year-on-year to £954.30 million, with growth across all divisions - impacts manufacturing and chemical sectors.
  • Adjusted EPS turned positive at £0.22 and adjusted pretax profit of £12.70 million beat the £11 million estimate - relevant to equity investors and corporate earnings analysis.
  • Company upgraded full-year 2026 outlook to slightly ahead of market expectations and expects full-year free cash flow before non-recourse receivables finance movements to be positive - important for credit and fixed-income stakeholders.

Synthomer, the UK speciality polymers supplier, reported a 6.7% rise in first-half revenue and has adjusted its full-year 2026 outlook upward, the company said on Tuesday.

Top-line and adjusted results

Revenue for the six months reached £954.30 million, with management saying growth was recorded across all business divisions. On an adjusted basis the company delivered earnings per share of £0.22, a turnaround from a loss in the comparable period last year and ahead of a £0.05 consensus estimate cited from one analyst.

Adjusted pretax profit came in at £12.70 million, above the £11 million estimate. The group also reported adjusted operating income (EBIT) of £48.60 million and adjusted EBITDA of £96.70 million for the half-year.

Statutory numbers and cash flow

On a statutory basis Synthomer reported a pretax loss of £25.50 million and a loss per basic share of £0.03. Free cash flow for the first half was negative £80.80 million.

Drivers of underlying earnings and margins

The company attributed its underlying earnings growth to strategic growth initiatives, ongoing innovation efforts and a deliberate shift towards higher-margin speciality products. Margin improvement was also linked to continued cost and efficiency measures implemented across the divisions.

Synthomer noted that temporary volume gains in its Health & Protection division were connected to supply chain disruptions affecting competitors. Management said it does not expect those elevated volumes to persist into the second half.

Outlook and balance-sheet metrics

Following the first-half results the company upgraded its full-year 2026 outlook to be slightly ahead of market expectations. It expects full-year free cash flow - before movements related to non-recourse receivables finance - to be positive.

Synthomer provided a year-end 2026 forecast for covenant net debt to EBITDA of 4.0-4.35 times, a projection that excludes any further divestments.


Note on limitations

The company indicated that certain volume benefits observed in the first half were temporary and tied to competitor supply issues, and it flagged that those effects are not anticipated to continue in the second half. No additional assumptions or estimates beyond those stated by the company were made in this report.

Risks

  • Temporary volume gains in the Health & Protection division were linked to competitors' supply chain disruptions and are not expected to continue into H2 - this affects near-term revenue visibility in healthcare-related product lines.
  • Statutory pretax loss of £25.50 million and negative free cash flow of £80.80 million for H1 indicate continued cash conversion and profitability challenges - relevant to lenders and investors assessing liquidity and solvency.
  • Forecasted covenant net debt to EBITDA of 4.0-4.35 times excludes further divestments, so balance-sheet outcomes could differ if asset sales occur or do not occur - material to credit covenant compliance and refinancing risk.

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