Arkema: EBITDA Falls 14% in Q1, Margins Under Pressure
Arkema released its first quarter 2026 results on Wednesday, marked by stable volumes but a contraction in operational margins. EBITDA fell by 14% to 283 million euros, affected by an unfavorable exchange rate effect of approximately 20 million euros and weakness in Advanced Materials. However, the group reaffirms its target for slight EBITDA growth at constant exchange rates in 2026.
EBITDA Retracts, Price Actions Initiated Since March
The group's revenue reached 2,182 million euros, down 8.4% year-on-year. At constant exchange rates, the decline stands at 3.2%, reflecting notably a 3.0% price decrease. Revenue is also penalized by a mechanical exchange rate effect of -5.1%, mainly due to the depreciation of the dollar. Volumes remain generally stable compared to last year, supported by continuous growth in Asia and a marked improvement in March after a slow start to the year.
EBITDA is set at 283 million euros compared to 329 million in the first quarter of 2025, incorporating an unfavorable exchange rate effect of around 20 million euros. Despite this annual decline, the indicator progresses by 14% sequentially compared to the fourth quarter of 2025, reflecting the improvement observed in March. The EBITDA margin falls to 13.0% (13.8% a year earlier).
Since March, the group has initiated rapid price actions across all its business units to offset the high inflation of input costs resulting from the crisis in the Middle East. The current operating income (REBIT) falls by 26.3% to 118 million euros, while the current net income decreases by 34.4% to 65 million euros, or 0.86 euro per share.
Contrasting Segments Between Resilience and Weakness
Advanced Materials, which represent 37% of the group's revenue, show a mixed start to the year. Their EBITDA falls by 20.4% to 139 million euros, with a margin compressed to 17.2% from 20.4% a year earlier. The group signals better dynamics expected in the second quarter, supported by High-Performance Polymers and the ramp-up of major growth projects, notably the new PVDF capacity in the United States, scheduled to start mid-year.
Adhesives record a strong sequential improvement of 26% compared to the fourth quarter of 2025, although their annual EBITDA falls to 89 million euros (a decrease of 10.3%). The Coating Solutions segment shows resilience with stable EBITDA at 51 million euros and a margin that improves by 100 basis points to 13.0%. Primary Materials sees its EBITDA slightly increase to 33 million euros, while its revenue suffers a sharp decline of 18.6%, affected by weak demand in acrylic monomers.
Outlook Confirmed Despite Geopolitical Uncertainties
The group confirms its target of slight EBITDA growth at constant exchange rates in 2026. This guidance is accompanied by particular attention to the potential impacts of the crisis in the Middle East on global demand, input costs, and supply chains. Major projects are expected to contribute approximately 50 million euros more to EBITDA in 2026 compared to 2025. Investments are managed at about 600 million euros for the year. The current cash flow stands at -95 million euros, reflecting the usual seasonality of the first quarter, but is higher than last year due to an improvement in working capital needs. The net debt and hybrid obligations reach 3,344 million euros, with a debt-to-EBITDA ratio over the last twelve months established at 2.8x.
