Synthomer Plc Model update and key focus points into 1H26 results

Research evidence excerpt

Synthomer Plc Model update and key focus points into 1H26 results

2 2.45 -78.2%

improvements is unclear, and the near-term market environment remains challenging. Adj. EBITDA - 26E (£ mn) 151 164 9.1%

We hence remain Neutral on SYNT with an unchanged Dec-27 PT of 102p.

Style Exposure

• What’s in this report? In addition to updating our forecasts and discussing the

key points into 1H26 results, we provide a quick recap of SYNT’s key

geographic, segment, and end market exposures (pp 5-7), as well as its strategy

and mid-term financial targets (p 8), and illustrate the latest trends in chemical/

raw material prices and spreads relevant to SYNT (pp 9-10).

vsBlombergconsensus-Table 2Changesinestimates): We update our model to reflect• Model update (details in Table 1JPM

SYNT’s recent trading update for Jan-May 2026 (our take here) and the latest

trends in relevant chemical prices and spreads. We raise our 1H26 adj EBITDA

forecast by 12% £93m (+19% YoY) to reflect the temporary tailwind from the With this report, we transfer coverage of

ME conflict — which, consequently, prompts us to increase our FY26 adj Synthomer from Chetan Udeshi to

EBITDA estimate by 9% to £164m (+20% YoY). While our updated forecast Angelina Glazova.

sits 5% above consensus, we note it is broadly in line with the earnings

2025A revenue by segment and end mkt

development implied in the 5M26 trading update. We keep our FY27/28E adj

EBITDA forecasts unchanged at £172m/£177m, which reflects our caution on

the mid-term outlook for the chemicals sector more broadly, with the ~5% YoY

increase in 2027 expected to be driven primarily by self-help measures. We

raise our 1H26-end net debt (excl. leases) forecast by 17% to £694m, as the

typical seasonal working capital build up will likely be exacerbated by the