Hard Rocks & Heavy Metals: European Basic Materials & Industrials

Research evidence excerpt

Hard Rocks & Heavy Metals: European Basic Materials & Industrials

Benjamin Defay AC Europe Credit Research

(33-1) 4015 5047 31 July 2026 J P M O R G A N

ben.defay@jpmorgan.com

Sector Newsflow

Chemicals

High Yield

• AZELIS (N) - Solid Q2 2026 results. Azelis reported Q2 2026 adjusted EBITA of

€128m (vs. €115m in Q2 2025), up +11% YoY. Q2 2026 reported FCF was -€65m and

net debt increased slightly to €1.6bn (vs. €1.5bn as of March 2026), translating into

reported net leverage of 3.4x as of June 2026 vs. 3.4x as of March 2026 and 3.1x a year

ago. The company commented it remains confident in its strategy and business model to

manage ongoing market volatility. For the full year, the company aims to deliver positive

adj. EBITA growth.

Investment-Grade

• AIFP (OW)- In-line H1 2026 results; FY 2026 guidance reiterated. Air Liquide

reported H1 2026 adjusted EBITDA of €4.2bn (vs. €4.0bn in H1 2025), up +5% YoY

driven by strong pricing in Industrial Merchant segment, and margin expansion from

initiatives and M&A. H1 2026 FCF was €126m but net debt increased to €13.9bn (vs.

€8.4bn as of December 2025) due to M&A and shareholder returns, translating into net

leverage of 1.7x as of June 2026 vs. 1.0x as of December 2025 and 1.2x a year ago. Air

Liquide reiterated its guidance for FY 2026 and still expects to deliver a +100bps

operating margin improvement in both 2026 and 2027 (would bring the cumulative

margin expansion to +560bps over the 2022-2027 period). The company also reiterated

its guidance for recurring net profit growth at constant FX in 2026.

• AKEFP (UW) - Solid Q2 2026 results; FY 2026 guidance reiterated. Arkema reported

Q2 2026 EBITDA of €391m (vs. €364m in Q2 2025), up +7% YoY driven by the strong

performances of Adhesive Solutions and Coating Solutions .