INEOS Quattro (USD) 2Q26 Results And Notes From The Call

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INEOS Quattro (USD) 2Q26 Results And Notes From The Call

J P M O R G A N North America Credit Research

30 July 2026

Neutral

INEOS Quattro (USD) STYRO

2Q26 Results And Notes From The Call Moody's:S&P: B3B Outlook:Outlook: NEGNEG

The above agency ratings are at the corporate level

North America Corporate Credit -

The difference between the almost right word and the right word is really a Chemicals and Energy (HY)

large matter. Quattro’s 2Q results were somewhat soft overall, with investor AC Aaron Rosenthal, CFA

attention primarily focused on the adj. EBITDA result when adjusting for

(1-212) 270-4584

inventory holding impacts. Note that the quarterly cash burn figure captured a aaron.rosenthal@jpmorgan.com

larger than previously anticipated working capital build of €284 million. The €200 Elle Boyd

million investment in public chemicals equities revealed in the slides this morning (1-212) 270-7283

was surprising. INEGRP’s investment was previously disclosed. It is somewhat elle.boyd@jpmchase.com

curious that the magnitude of this investment matched the €200 million J.P. Morgan Securities LLC

shareholder contribution from earlier this year (that was expected to be allocated

towards debt repayment). The quarterly filing revealed a ~€55 million MTM loss

on the equity investment (INEGRP’s MTM equity investment loss ~€57 million).

The capital allocation decision (and timing) was less than ideal from a credit

perspective, but the remaining amount (and any potential gains) theoretically are

still available to retire debt. We view the announcement regarding expectations for

near-term updates on E.U. ADDs on PVC imports (potential for preliminary duties,

including retroactive duties, by YE26) as the most material takeaway from the 103-

minute conference call.