Year-on-year sales growth accelerates to 9%, led by 13% growth in Materials; Underlying EBITDA increases sequentially to €320 million with operating cash flow of €284 million; Improved full-year operating cash flow & Capex outlook
Q3 2026 Highlights
- Net sales of €1.59 billion driven by 7% year-on-year volume growth, led by Materials, and higher overall pricing (+2%). Acceleration in Materials year-on-year growth, with 27% growth in Composite Materials and 6% growth in Specialty Polymers. Sequentially, net sales increased 2%, primarily driven by Composite Materials and Technology Solutions;
Gross profit of €502 million increased 7% year-on-year, primarily driven by Materials. Gross margin of 31.6% included increased raw materials costs as well as a higher proportion of Composite Materials net sales within the Materials segment;
Underlying EBITDA was broadly stable year-on-year, including higher variable compensation accruals, and increased 3% sequentially to €320 million, supported by higher underlying EBITDA in Specialty Polymers and Novecare;
- Underlying EBITDA margin of 20.1% supported by 100 basis points of margin expansion in Performance & Care. On a sequential basis, underlying EBITDA margin was approximately flat;
Underlying profit attributable to Syensqo shareholders increased 3% sequentially to €109 million;
Operating cash flow of €284 million decreased 14% year-on-year, primarily reflecting the absence of €92 million of litigation-related compensation received in Q3 2025 from the ICC International Court of Arbitration. On a sequential basis, operating cash flow increased significantly;
Capital expenditures1 of €107 million decreased 25% year-on-year reflecting ongoing capital focus
1Including Capex for the new ERP Implementation
We delivered further volume-led growth in the third quarter, building on the actions we have taken since the beginning of the year in a dynamic external environment. Materials delivered 13% sales growth, reflecting a record performance in Composite Materials and an acceleration of growth in Specialty Polymers, led by strong demand in semiconductors and batteries. We also delivered an improved operating cash flow performance in Q3, and have updated our full-year outlook.
We are taking selective commercial actions to capture additional growth opportunities in Specialty Polymers while managing higher raw material costs and the timing of pricing adjustments. These factors weighed on gross margin in the quarter and we remain focused on mitigating their impact to support profitable growth.
Finally, the strategic review of the Performance and Care segment is continuing to progress and we have received interest from a range of prospective parties. Our focus remains on working towards an outcome that maximizes value for shareholders.
2026 Outlook
Taking into account current visibility, geopolitical uncertainty and related inflationary pressures, we continue to expect low-to-mid single digit volume growth for the full-year. In the fourth quarter, we expect mid-to-high single digit year-on-year volume growth, led by the Materials segment.
We continue to expect first quarter underlying EBITDA of €251 million to be the lowest quarterly level of the year, including expected fourth quarter seasonality.
Based on operating cash flow generated in the first nine months and our expectations for the fourth quarter, we now expect full-year operating cash flow of at least €700 million.
We now expect full-year capital expenditures to be below our previous outlook, primarily reflecting the timing of expenditure on certain projects, which is now expected in 2027.
Our full-year 2026 outlook2 is now expected to be as follows:
- Underlying EBITDA of at least €1.1 billion (unchanged)
- Operating cash flow of at least €700 million (updated from prior outlook of “approximately €700 million”)
- Capital expenditures3 of less than €450 million (updated from prior outlook of “approximately €450 million”)
2Assumes EUR/US$ @ 1.20
3Including Capex for the new ERP Implementation
Media toolkit
This press release may contain forward-looking information. Forward-looking statements describe expectations, plans, strategies, goals, future events or intentions. The achievement of forward-looking statements contained in this press release is subject to risks and uncertainties relating to a number of factors, including general economic factors, interest rate and foreign currency exchange rate fluctuations, changing market conditions, product competition, the nature of product development, impact of acquisitions and divestitures, restructurings, products withdrawals, regulatory approval processes, all-in scenario of R&I projects and other unusual items. Consequently, actual results or future events may differ materially from those expressed or implied by such forward-looking statements. Should known or unknown risks or uncertainties materialise, or should our assumptions prove inaccurate, actual results could vary materially from those anticipated. The Company undertakes no obligation to publicly update or revise any forward-looking statements.
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.