5% year-on-year organic sales growth, led by Materials; Return to year-on-year organic sales growth in Specialty Polymers; Gross margin increased to 34%, underlying EBITDA of €311 million increased 24% sequentially; Updated full year underlying EBITDA outlook
Q2 2026 Highlights
- Net sales of €1.55 billion driven by 5% year-on-year volume growth, led by Materials, with stable pricing. Composite Materials delivered 18% year-on-year growth with Specialty Polymers returning to growth. On a sequential basis, net sales increased 11%, primarily driven by Specialty Polymers;
Gross profit of €528 million increased 7% year-on-year, primarily driven by Materials, resulting in a gross margin of 34.0%, up 100 basis points with year-on-year margin expansion in both Materials and Performance & Care;
Underlying EBITDA of €311 million decreased 6% organically year-on-year, including higher variable compensation accruals, resulting in an underlying EBITDA margin of 20.0%. On a sequential basis, underlying EBITDA increased by 24%, primarily driven by Materials, with approximately 210 basis points of underlying EBITDA margin expansion;
Underlying profit attributable to Syensqo shareholders of €106 million;
Operating cash flow of €131 million increased significantly year-on-year driven by the absence of separation costs as well as the positive impact of working capital;
Capital expenditures1 of €95 million decreased 16% year-on-year;
Strategic review of the Performance & Care segment announced in May 2026
1Including Capex for the new ERP Implementation
The second quarter of the year saw Syensqo reach an important milestone, with a return to year on year volume and sales growth in a dynamic macroeconomic environment. Led by Materials, we delivered high teens growth in Composite Materials. In addition, Specialty Polymers returned to growth, supported by improved momentum in semiconductors, as well as our ongoing actions to support longer-term performance.
Based on our first half performance as well as stronger expected volume growth, particularly in Materials, we are more confident in our full year underlying EBITDA outlook and have updated our outlook to at least € 1.1 billion.
Aligned with our strategic intention to become a pure play specialty materials and advanced technologies company, we launched a review of the Performance & Care segment, as announced in May, and have since appointed advisors with an emphasis on maximizing long-term value for our shareholders.
2026 Outlook
Taking into account current visibility and the uncertain geopolitical environment, we continue to expect a gradual recovery in year-on-year volumes, which is expected to drive stronger growth for the balance of the year.
Supported by our performance in the first half of the year and an improved order book, most notably in the Materials segment, we now expect low to mid-single digit volume growth on a full year basis.
Our full year 2026 outlook2 is now as follows:
- Underlying EBITDA of at least €1.1 billion (updated from prior outlook of “approximately €1.1 billion”)
- Operating cash flow of approximately €700 million (unchanged)
Capital expenditures3 of approximately €450 million (unchanged)
2 Assumes EUR/US$ @ 1.20
3Including 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 approximately 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.