Solvay Stock: Shares Fall Ahead of 2025 Annual Results Release
Solvay's stock has fallen nearly 2% this Wednesday morning, standing at 27.11 euros on Euronext Brussels. This decline occurs amidst a year of deteriorating performance and just days before a key deadline for the Belgian chemical group.
Solvay's stock has dropped by 1.92% compared to the previous day, extending a negative streak of more than 3% over the last seven days. The stock is now just below its 200-day moving average, located at 27.89 euros, a technical level often considered as a long-term trend indicator. As long as the price remains below this threshold, the underlying momentum remains weak. The RSI, which measures the relative strength of the stock over 14 days, stands at 65, a zone still far from overheating but indicating some exhaustion of the rebound observed in recent weeks, having recently crossed its 20 and 50-day moving averages (at 26.44 and 26.76 euros respectively). Over the year, the underperformance reaches 16.69%, highlighting the challenges faced by the group in an unpropitious sector environment. The next resistance level is identified at 28.50 euros, a level that must be reclaimed to consider a more sustained reversal of the trend.
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The financial calendar of the Belgian chemist includes the publication of its 2025 annual results on February 24, which is next Tuesday. This deadline constitutes the first major milestone of the year for the group's shareholders, who completed the spin-off with Syensqo at the end of 2023 and have since continued its strategy focused on essential chemistry. Beyond this publication, several dates will mark the first half of the year: the results of the first quarter of 2026 are expected on May 7, followed by the general meeting scheduled for May 12. These events will allow for an assessment of the group's operational and financial trajectory in a context of uncertain industrial demand in Europe. The stock displays a particularly low beta, at 0.07, indicating a very limited correlation with general market movements and a contained volatility profile, with monthly volatility standing at 9.27%.
Challenging market environment, excluding potential recovery measures from Sadara, updated guidance reflects Middle East impact
Risks mentioned
Middle East conflict impact of approximately €-25 million on underlying EBITDA in Q3 2026
Continued shutdown of the Peroxide plant at the Sadara complex in Jubail, Saudi Arabia accounted for €-15 million in Q3 2026
Challenging market environment affecting Group performance in Q3 2026
Opportunities identified
Joint venture contractual framework includes mechanisms designed to recover lost profitability from Sadara shutdown
Group exploring all available avenues to mitigate financial impact of shutdown
Transformation program and focus on cash generation and cost savings targets
Outlook / guidance
Expected EBITDA: 730 millions d'euros
Management commentary: In light of these developments, Solvay has reviewed its full-year 2026 guidance. Excluding potential revenue or recovery measures from Sadara for the remainder of 2026, the updated guidance is: Underlying EBITDA between €720 and €740 million
The information presented in this article is provided for informational purposes only and does not constitute an investment recommendation, an incentive to buy or sell a financial asset, or investment advice. Readers are invited to conduct their own research before making any decision.
Investments in the stock market involve risks, including the risk of capital loss. Past performance of an asset or market is no guarantee of future results. Any investment decision should be made taking into account your personal financial situation, objectives and risk tolerance.