Solvay said Wednesday that free cash flow to Solvay shareholders from continuing operations fell 67.5% to €70 million in the first nine months of 2026, while final third-quarter results showed weaker underlying profit and margins.
The nine-month cash-flow figure compares with €214 million a year earlier. Third-quarter free cash flow fell to €54 million from €117 million, despite a €28 million nonrecurring benefit from an insurer settlement.
Underlying profit from continuing operations dropped to €35 million in the third quarter from €90 million a year earlier. Underlying earnings before interest, taxes, depreciation and amortization (EBITDA) declined to €173 million from €232 million, narrowing the margin to 16.8% from 22.2%.
The profit measures moved in different directions. Profit from continuing operations under International Financial Reporting Standards rose to €68 million from €35 million; Solvay excludes specified items when calculating its underlying results.
Underlying net sales were €1.031 billion, compared with €1.044 billion a year earlier, a 3.3% organic decline. Basic Chemicals sales fell 8.4% organically as Peroxides and Soda Ash & Derivatives weakened, while Performance Chemicals sales rose 5.1%. Solvay cited lower prices in seaborne soda ash markets.
Solvay estimated that the Middle East conflict reduced third-quarter underlying EBITDA by about €25 million, including nearly €15 million tied to the continued shutdown of its peroxide plant in Jubail, Saudi Arabia. The plant has been closed since March. Solvay says it is technically ready to restart but has given no restart date. The year-earlier quarter also included about €40 million in EBITDA from sales of carbon emissions rights.
The company retained the outlook it set when it lowered its full-year forecast on Oct. 19: underlying EBITDA of €720 million to €740 million and free cash flow to shareholders from continuing operations of €120 million to €150 million. The cash-flow forecast accounts for about €90 million in transformation expenses, and the outlook excludes potential Sadara recovery payments for the rest of 2026.
Solvay’s board approved a gross interim dividend of €0.97 per share, payable Jan. 20, 2027. The company also signed an agreement for Viridis to supply rare earth feedstock beginning in 2028. Discussions with OneIM over a possible rare earths partnership continue, with no agreement assured.
Solvay is scheduled to report fourth-quarter and full-year results March 4, 2027.
