Solvay: the Middle East conflict weighs €25M on EBITDA in the third quarter
Solvay published its third-quarter results on November 4, 2026, marked by a €25 million impact from the Middle East conflict on its underlying EBITDA, compared with €20 million in the second quarter. The temporary shutdown of the peroxides plant at the Sadara complex in Jubail, Saudi Arabia, accounts for the largest share of this impact.
This shutdown cost nearly €15 million in each of the two quarters, so the increase in the total impact mainly stems from other effects of the conflict. In this context, the group made progress on two rare earths projects and decided on an interim dividend in line with its policy.
The Jubail plant accounts for most of the cost of the conflict
Chief Executive Officer Philippe Kehren summarized the situation: "The conflict in the Middle East has a significant impact on Solvay's operations, as the temporary shutdown of our Peroxides plant in Jubail is significantly affecting the company's short-term performance." He describes an economic environment that remains "difficult".
Solvay's activities in Jubail are carried out within a joint venture with Sadara, which is itself majority-owned by Saudi Aramco. The contractual framework of this joint venture includes mechanisms designed to recover lost profitability, and the group states that it is examining all available options to mitigate the financial impact of the shutdown.
Rare earths: an agreement signed with Viridis, discussions with OneIM
Rare earths are the subject of two separate initiatives. Solvay is first continuing its discussions with OneIM, an investment fund specializing in critical minerals: should a definitive agreement be reached, the group would contribute its rare earths activities to a newly created joint venture, while retaining a significant minority stake in it.
The scope concerned generates approximately €80 million in underlying EBITDA on an annual basis. The group specifies that there is no guarantee these discussions will lead to a definitive agreement, nor that a transaction will actually be completed.
In parallel, Solvay has signed a long-term supply agreement with Viridis, which secures rare earth raw materials for the group starting in 2028. According to Philippe Kehren, this agreement strengthens the group's position in rare earth separation and should allow the La Rochelle plant to "take advantage of future growth opportunities".
Outlook excluding recovery and an interim dividend of €0.97 per share
The group refers to its 2026 outlook published on October 19, 2026, the date on which it had lowered its underlying EBITDA target for the financial year. This outlook excludes any potential revenues or recovery measures related to Sadara for the remainder of the year. The following day, the share price fell to its lowest level in two years.
The board of directors also decided to pay an interim gross dividend of €0.97 per share. This represents 40% of the total dividend of €2.43 per share for 2025, in accordance with the group's dividend policy and its historical practices.
The cost of the Jubail shutdown remained of the same order from one quarter to the next, and no recovery is included in the annual outlook. On rare earths, the group is advancing on two fronts: a signed supply agreement and a joint venture project still under discussion.
