Arkema Generates Record Cash Flow Despite an 18% Decline in EBITDA
The French chemical company reported its 2025 results marked by a contraction of EBITDA to 1,251 million euros, affected by a deteriorated macroeconomic environment. The group offsets this weakness with strict cost discipline and excellent conversion of profitability into cash, generating 464 million euros in operating cash flow, well beyond its revised guidance.
EBITDA Declines Amidst Challenging Market Conditions
Arkema recorded an EBITDA of 1,251 million euros in 2025, down by 18.3% compared to 2024. This performance reflects two major shocks: the low cycle in the upstream acrylics and the significant decline in legacy refrigerants, two activities that represent less than 15% of the group's revenue. The EBITDA margin came in at 13.8%, slightly decreased. The group's revenue amounted to 9,068 million euros, down by 5.0% from 2024, impacted by three factors: a volume contraction of 1.6%, a negative price impact of 2.1%, and an unfavorable currency effect of 2.9% due to the depreciation of the dollar and Asian currencies. Concurrently, major projects contributed an additional approximately 60 million euros to EBITDA, confirming their gradual ramp-up.
Strong Cash Flow Performance Exceeds Expectations
The operating cash flow reached 464 million euros, significantly higher than the revised guidance of 300 million euros and up by 10.7% compared to 2024. This result reflects an EBITDA to operational cash conversion of 88%, far exceeding the group's target of 70%. Rigorous working capital management generated a positive change of 145 million euros, bringing this requirement to 12.5% of revenue. Investments were recorded at 636 million euros, below the target of 650 million euros, while net debt and hybrid obligations slightly decreased to 3,170 million euros, representing 2.5 times the EBITDA. The Specialty Materials segments showed notable resilience, with a 16% revenue growth in key markets: batteries, sports, 3D printing, health, and fluorinated specialties.
Dividend Maintained Amidst Tough Conditions
The board of directors proposes maintaining the dividend at 3.60 euros per share for the fiscal year 2025, reflecting the strength of the balance sheet despite the challenging environment. The coupon detachment is scheduled for May 25, 2026. Starting from 2026, the group introduces a new segmentation: three Specialty Materials segments (Adhesives, Advanced Materials, Coating Solutions) representing approximately 85% of the revenue, and a new Primary Materials segment including acrylics, traditional refrigerants, and hydrogen peroxide. For 2026, Arkema aims for a slight growth in EBITDA at constant exchange rates and anticipates an additional contribution of about 50 million euros from its major projects.
