Net sales of €1.4 billion, increased 5% sequentially, led by Specialty Polymers and Novecare; Underlying EBITDA of €251 million, increased 6% sequentially, led by Specialty Polymers; Full year 2026 underlying EBITDA outlook unchanged, with capital expenditure lowered by up to €50 million
Q1 2026 Highlights
- Net sales of €1.4 billion reflect stable overall year-on-year volumes, offset by the adverse impact of foreign exchange movements. On a sequential basis, net sales increased 5%, driven by higher volumes led by Specialty Polymers and Novecare, while pricing remained stable;
- Gross profit of €444 million reflects the year-on-year impact of foreign exchange movements on net sales as well as unfavorable product mix, resulting in a gross margin of 31.7%. Compared to the fourth quarter of 2025, gross profit increased by 15% and gross margin expanded by 260 basis points, primarily driven by growth in Specialty Polymers;
- Underlying EBITDA of €251 million decreased 13% organically year-on-year, resulting in an underlying EBITDA margin of 17.9%. On a sequential basis, underlying EBITDA increased 6% driven by Specialty Polymers, Novecare and Composite Materials;
- Underlying profit attributable to Syensqo shareholders of €68 million;
- Operating cash flow of €82 million included the final payment of separation costs of approximately €30 million;
- Capital expenditures1 of €97 million decreased 44% year-on-year;
- Divestment of the Oil & Gas business unit completed in January with net proceeds of approximately €130 million
1 Including Capex for the new ERP Implementation
The first quarter of the year saw us deliver on our outlook in a dynamic external environment. We also saw stable year-on-year volumes with improved momentum in Specialty Polymers, supported by ongoing initiatives to drive longer-term growth, as well as strong sequential growth in Novecare. Overall, we have seen improving order book trends in the second quarter, which gives greater line of sight to deliver on our full year outlook.
While the ongoing conflict in the Middle East had no material impact on our first quarter performance, it remains a source of uncertainty and we have taken actions to mitigate any direct impact on our operations.
Having completed my first 100 days as CEO, and complemented by recent leadership appointments, we are working at pace to drive more consistent execution, sharpen our capital discipline as well as implement actions to accelerate growth and improve cashflow trajectory.
2026 Outlook
Taking into account current visibility as well as current geopolitical environment, we continue to expect low single-digit volume growth in 2026, led by Composite Materials.
Aligned with the outlook provided on February 26, 2026, we continue to expect our first quarter EBITDA to be the lowest quarter of the year, supported by improving order book trends in the second quarter as well as a gradual recovery in year-on-year volumes, which is expected to drive stronger growth for the balance of the year.
Supporting our ongoing focus on capital discipline and further improving cashflow generation, we have identified additional actions to reduce capital expenditure in 2026, including lower sustenance and ERP-related spend.
Our full year 2026 outlook is now as follows:
- Underlying EBITDA of approximately €1.1 billion (unchanged)
- Operating cash flow of approximately €700 million (unchanged)
- Capital Expenditure2 of approximately €450 million (updated from prior outlook of “less than €500 million”)
The second quarter will include a cash outflow of approximately €165 million related to the payment of the 2025 dividend on May 18, 2026.
2 Including Capex for the new ERP Implementation
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Syensqo is a science company developing groundbreaking solutions that enhance the way we live, work, travel and play. Inspired by the scientific councils which Ernest Solvay initiated in 1911, we bring great minds together to push the limits of science and innovation for the benefit of our customers, with a diverse, global team of more than 13,000 associates.
Our solutions contribute to safer, cleaner, and more sustainable products found in homes, food and consumer goods, planes, cars, batteries, smart devices and health care applications. Our innovation power enables us to deliver on the ambition of a circular economy and explore breakthrough technologies that advance humanity.