Croda International: 2Q26 results - Another step towards delivery

研报英文原文证据摘录

Croda International: 2Q26 results - Another step towards delivery

in Consumer Care, but the key driver of H2 improvement is expected to be Life 12/27E 177.04 174.46 -1 178.43

Sciences, supported by a recovery in Pharma Solutions following H1 project 12/28E 198.76 196.07 -1 197.25

phasing, a modest improvement in Crop Protection and further transformation

benefits. Management also pointed to a stronger Q2 margin exit rate and a more Christian Bell, CFA

favourable mix as supporting H2 margin progression. The key risk in our view is Analyst

that delivery relies on improved Life Sciences volumes. While Crop Protection christian.bell@ubs.com

+44-20-7901 5493

continues to lap strong comparatives from H2 2025 (Q3 +19%, Q4 +12%),

management believes that Q1 2026 reflected a period of customer inventory Priyanka Patel

balancing and therefore sees scope for modest improvement through the second Analyst

priyanka.patel@ubs.com half. In addition, pricing could become less supportive if raw material costs

+44-20-7568 0016

continue to normalise.

We trim adj EBIT by -1% / -1% / -1% in FY26 / FY27 / FY28

In FY26, we lower our OSG forecast from 6.9% to 5.5%, primarily reflecting more

cautious assumptions for Life Sciences, while remaining within management's guidance

range. We think management's commentary around a recovery in Pharma Solutions and

a modest improvement in Crop Protection creates greater scope of risk around H2

volume and pricing than previously. Against this, we increase our H2 margin

assumptions, reflecting ongoing transformation benefits and lower investment-related

headwinds versus H1. In FY27 and FY28, we make modest reductions to our margin

assumptions, reflecting a slightly slower volume recovery profile in Life Sciences,