Syensqo: Q1 Revenue of €1.4 Billion, Underlying EBITDA Down 13% Organically
Syensqo reported its first quarter 2026 results, showing a net revenue of €1.399 billion. However, organic underlying EBITDA fell by 13% year-over-year, reflecting margin pressures due to exchange rate movements and an unfavorable product mix. The group maintains its annual guidance for 2026 while lowering its investment expenditures.
Stable Volumes but Compressed Margins Year Over Year
Syensqo recorded a net revenue of €1.399 billion in the first quarter, slightly down by 7.4% year-over-year but up by 5.3% sequentially from the fourth quarter of 2025. This reflects generally stable volumes year-over-year, offset by adverse exchange rate effects. Sequentially, higher volumes in Specialty Polymers and Novecare supported growth.
The underlying EBITDA stands at €251 million, down organically by 13.1% year-over-year, with an EBITDA margin of 17.9% compared to 19.9% a year earlier (a decline of 200 basis points). The gross profit of €444 million suffered from exchange rate movements and an unfavorable product mix. However, sequentially, the situation improves: underlying EBITDA increased by 6.5%, driven by growth in Specialty Polymers, Novecare, and Composite Materials.
The underlying net profit attributable to shareholders reached €68 million. Operational cash flow amounted to €82 million, reduced by the final payment of separation costs of about €30 million. Investment expenditures decreased by 44% year-over-year to €97 million.
Geopolitics and Order Book Dynamics
Mike Radossich, CEO, emphasizes that the group has held its outlook in a dynamic external environment, with stable volumes year-over-year and an improvement in Specialty Polymers. The conflict in the Middle East had no significant impact in the first quarter, but remains a source of uncertainty for which Syensqo has implemented mitigation actions.
A key element for investor visibility: the order book shows an improving trend in the second quarter, according to management. This momentum supports the group's confidence in its ability to maintain its annual guidance and to see volumes gradually increase for the remainder of the fiscal year.
Reduced Investments, Unchanged EBITDA Guidance
Syensqo maintains its guidance for the fiscal year 2026: underlying EBITDA of about €1.1 billion and operational cash flow of about €700 million. The group anticipates volume growth at the lower end of the single-digit range, led by Composite Materials.
To strengthen its budgetary discipline, management has revised down its 2026 investment expenditures to about €450 million (from less than €500 million previously), thanks to reductions in maintenance and ERP project-related expenses. The second quarter will include a cash outflow of about €165 million related to the payment of the planned 2025 dividend on May 18, 2026.
