Syensqo third quarter 2025 results

Core Insights - Syensqo reported an underlying EBITDA of €326 million for Q3 2025, reflecting resilient margin performance despite a challenging macroeconomic environment [1][3][22] - The company generated strong free cash flow of €250 million in Q3, indicating robust cash generation capabilities [1][22] - An agreement to divest the Oil & Gas business unit for an enterprise value of €135 million was reached, advancing Syensqo's pure play specialty strategy [1][6][22] Financial Performance - Net sales for Q3 2025 were €1.52 billion, down 7.1% year-on-year, impacted by unfavorable foreign exchange movements (-5%) and lower volumes (-1%) [2][6][29] - Gross profit decreased by 15.3% year-on-year to €484 million, resulting in a gross profit margin of 31.9%, which remained unchanged sequentially [2][6][29] - Underlying EBITDA decreased by 12.8% year-on-year, with a margin of 21.5%, which expanded by 40 basis points sequentially [2][6][22] Cash Flow and Efficiency - Operating cash flow increased significantly to €331 million, up 57.9% year-on-year, while free cash flow surged to €250 million from €27 million in the previous year [2][6][22] - Cash conversion for the last twelve months (LTM) improved to 76%, up 690 basis points year-on-year [2][6][22] - Return on Capital Employed (ROCE) for LTM was 6.5%, down 160 basis points year-on-year [2][6][22] Strategic Outlook - The company anticipates a slower recovery in volumes for the remainder of the year, adjusting its full-year outlook accordingly [4][6][20] - Strong underlying demand in civil aerospace and space & defense applications is expected to support growth in Composite Materials in 2026 and beyond [7][20][34] - Syensqo aims to achieve over €200 million in run-rate savings by the end of 2026 through cost-saving initiatives [8][21][35]