Solvay SA (SOLB.BR): 2Q26 EBITDA slightly ahead, on track to meet FY consensus

Research evidence excerpt

Solvay SA (SOLB.BR): 2Q26 EBITDA slightly ahead, on track to meet FY consensus

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29 Jul 2026 02:45:52 ET │ 11 pages

Solvay SA (SOLB.BR)

2Q26 EBITDA slightly ahead, on track to meet FY consensus

CITI'S TAKE

Neutral At first sight, this appears to be a relatively straightforward set of results.

2Q EBITDA was a modest 2% beat, driven by Basic Chemicals despite the Price (28 Jul 26 17:30) €26.42

previously disclosed shutdown of the HPPO plant in Saudi Arabia. Soda Target price €26.00

Ash volumes were lower due to delayed shipments, although the Expected share price return -1.6%

magnitude remains unclear, while seaborne prices continue to face Expected dividend yield 9.2%

pressure. Bicarbonates remained stable. Performance Chemicals was Expected total return 7.6%

slightly weaker, despite management previously highlighting improved

Market Cap €2,797M Coatis pricing linked to the Middle East conflict; the YoY comparison was

US$3,180M also affected by a one-off benefit in the prior year. The EBITDA bridge

indicates that cost savings more than offset fixed-cost inflation. Guidance

was left unchanged at €770–850m EBITDA (vs. €780m consensus) and

FCF of >€200m. Sebastian Satz, CFAAC

+44-203-569-3662

Implications — The shares have been among the sector’s weaker performers, sebastian.satz@citi.com

reflecting what we believe are investor concerns around earnings risk. Based on the

Ranulf Orr, CFA2Q run-rate, consensus EBITDA expectations appear achievable. Moreover,

management has previously indicated that underlying H2 earnings should exceed +44-20-7986-3922

H1, supported by (i) a potential new HPPO licence agreement and, more importantly, ranulf.orr@citi.com

(ii) the phasing-out of stranded costs. Against this backdrop, today’s results should Omi Pallavi