1Q26 Chemicals & Packaging Earnings Wrap-Up

研报英文原文证据摘录

1Q26 Chemicals & Packaging Earnings Wrap-Up

ness in AM and

Fibers continues to weigh on earnings upside. CE (Link) is seeing price in AC/VAM and EM for a stronger

Q2, although CE expects AC normalization and lower earnings in H2. Lastly, HUN (Link) continues to

face volume challenges, although pricing should offset rising raws.

• Specialty Chems generally saw positive 1Q results, with 1Q beats and in-line guides. Q (Link) beat

Q1 by 9% and raised FY26, and we expect continued hsd%+ volume growth given its out-performance

of MSI and continued HPC/AI/Datacenter growth. ALB (Link) remains well-positioned given improving

S/D, with CIF Asia spot now in the low-mid-$20s/kg. SOLS (Link) saw a strong Q1, and we continue to

think capacity investments, HFO transition, cyclical recovery in B&C, and UF6 price should continue

to drive growth. DD (Link) continues to see solid dd% EPS growth post recent portfolio moves (Q spin,

Aramids sale), and we think it remains in a strong position for capital returns and bolt-on M&A. Neither

CTVA (Link) nor FMC (Link) raised FY guides after beating on Q1, although CTVA appears somewhat

conservative given its solid 1H growth, and we think CTVA should continue to do well ahead of its seed

spin ("Vylor") in 2H. LIN (Link) and APD (Link) both saw Q1 beats and slightly raised FY26, reporting

strong volume/productivity, and msd% FX tailwinds. We still think APD may cancel Darrow unless Yara

can gain comfort w/elevated costs, and we raised est. EAF (Link) missed on price but maintained FY26

vol and COGS savings.

• Coatings: We prefer SHW (Link), which beat Q1 on share gains/moderating raws and maintained FY26.

We lowered est on raws inf/demand destruction. PPG (Link) was in-line and maintained FY26 on ME

uncertainty/$240-$300M raws infl.