Solvay fourth quarter and full year 2025 results

Core Insights - The company achieved strong free cash flow of €350 million in 2025 despite a challenging market environment, with a focus on strategic and sustainability commitments [4][6] - Underlying net sales for 2025 were €4.3 billion, reflecting a 6.5% organic decline compared to 2024, while underlying EBITDA was €881 million, down 13.4% organically [6][14] - The company is committed to its "Essential chemistry" strategy, emphasizing cost savings and disciplined capital allocation to navigate market softness and geopolitical uncertainties [5][8] Financial Performance - Q4 2025 net sales were €995 million, a 12.3% decrease year-on-year, while FY 2025 net sales totaled €4,262 million, down 9.0% [2] - EBITDA for Q4 2025 was €169 million, a 33.9% decline year-on-year, with an EBITDA margin of 17.0% [2] - The underlying net profit from continuing operations was €306 million in 2025, compared to €445 million in 2024 [6] Cost Management and Strategic Initiatives - The company generated over €200 million in cost savings over the past two years, focusing on digitalization and simplification [5] - Structural cost savings initiatives contributed €101 million in 2025, with cumulative savings reaching €211 million [6] - Transformation expenses negatively impacted EBITDA by €27 million and free cash flow by €71 million in 2025 [6] Dividend and Future Outlook - A total proposed gross dividend of €2.43 per share is subject to shareholder approval, with a stable-to-increasing dividend policy confirmed [11] - For 2026, the company expects underlying EBITDA to be between €770 million and €850 million, with free cash flow projected to be at least €200 million [9][13] - The company anticipates continued geopolitical and macroeconomic challenges, impacting end-market demand and pricing pressure [9]