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Revenue: EUR2.2 billion, down 8.6% year-on-year.

EBITDA: EUR310 million, impacted by a EUR15 million negative currency effect.

Net Income: Adjusted net income of EUR78 million, EUR1.04 per share.

Recurring Cash Flow: EUR207 million, reflecting tight working capital management.

Net Debt: EUR3.4 billion, including EUR1.1 billion of hybrid bonds.

Net Debt to EBITDA Ratio: Approximately 0.6.

Capital Expenditure: EUR131 million, with a full-year target of EUR650 million.

ROCE Impact: Expected gain of around 2.5 points from major projects over the next years.

Cost Savings: On track to achieve EUR100 million of fixed and variable cost savings by year-end.

EBITDA Guidance for 2025: Between EUR1.25 billion and EUR1.3 billion.

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Release Date: November 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Arkema SA (ARKAF) reported substantial growth in key markets such as batteries, sports, 3D printing, healthcare, and new generation fluoro specialties, with sales up 20% in these areas.

The company successfully started two new plants in the US, both on budget and on schedule, indicating strong project management.

Arkema SA (ARKAF) achieved EUR200 million in recurring cash flow, reflecting effective working capital management despite lower earnings.

The company is on track to deliver EUR100 million in fixed and variable cost savings by year-end, showcasing strong cost management initiatives.

Arkema SA (ARKAF) maintained a robust balance sheet with reduced debt, supported by solid cash generation and disciplined capital allocation.

Arkema SA (ARKAF) faced a challenging macroeconomic environment with weaker-than-anticipated trends in the US and low demand in Europe.

The company's Q3 sales were down 8.6% year-on-year, impacted by a negative currency effect and lower volumes.

EBITDA decreased to EUR310 million, reflecting the impact of lower demand and pricing pressures.

The company revised its major project contribution from an expected EUR100 million to EUR60 million due to the tough environment.

Arkema SA (ARKAF) experienced volatility in its coatings segment, linked to low cycle conditions in upstream acrylics and refrigerant gases.

Q: What are the near-term prospects for the US construction market given the recent guidance cut? A: Thierry Le Henaff, CEO, explained that the US market was weaker than expected over the summer, particularly in construction. However, he emphasized that the US market is agile and can recover quickly, so while Q4 is expected to be similar, it's too early to predict long-term trends.

Q: Have you released bonus provisions like other chemical companies, and how do these factor into your cost savings? A: Marie-Jose Donsion, CFO, stated that bonus provisions have been adjusted progressively throughout the year based on revised guidance. The EUR100 million cost savings target includes these adjustments, with two-thirds from fixed costs and one-third from variable costs.

Q: Can you elaborate on the data center market potential and the impact of refrigerant gases? A: Thierry Le Henaff noted that the data center market is a new focus, with current sales over EUR10 million and a target of over EUR100 million by 2030. The market for low GWP refrigerant gases in chillers is promising, and the company expects good growth and margins in this area.

Q: How does the current dividend policy align with your cash flow and strategic priorities? A: Thierry Le Henaff emphasized that maintaining a stable dividend is a priority for Arkema. Despite challenging conditions, the company covers its dividend with free cash flow. The CapEx will be reduced to EUR600 million next year, supporting strategic flexibility.

Q: What is the performance outlook for High Performance Polymers (HPP) given recent investments? A: Thierry Le Henaff acknowledged that HPP's performance has been below expectations due to macroeconomic challenges. However, the strategic investments in HPP are considered sound, and the division is expected to remain a bright spot for Arkema with significant growth potential.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.