Arkema shares rise 2% as Q3 EBITDA matches estimates, 2026 outlook held

Arkema shares rose 2% after the French specialty chemicals company confirmed its full-year EBITDA target, as organic sales growth of 6.6% helped third-quarter earnings match analyst expectations.

The Paris-listed stock reached €59.40 following the release. Arkema reported third-quarter adjusted EBITDA of €332 million, compared with analyst estimates of €328 million, as organic sales grew 6.6%. 

Group sales reached €2.36 billion, supported by a 6% contribution from pricing and 0.6% from volume growth. Positive currency effects added 1.8%, while portfolio changes reduced sales by 0.3%.

Adjusted EBITDA margins fell 10 basis points year-over-year.

Cost savings reached €55 million year-to-date, putting the company on track to meet its full-year goal of offsetting fixed cost inflation.

Arkema reiterated its expectation that full-year 2026 EBITDA would be slightly higher than the prior year at constant currencies.

Jefferies analysts maintained a "hold" rating on the stock with a price target of €50, questioning whether the slight beat would move the needle given continued weakness in primary materials. 

Jefferies noted that adjusted EBITDA margins of 14.1% missed consensus expectations of 14.4%, as strength in specialty materials was partially offset by weak acrylic monomer spreads in Asia and Europe.

Divisional performance was led by Advanced Materials, which reported adjusted EBITDA of €163 million on sales of €861 million, supported by high-performance polymers. 

Adhesive Solutions posted adjusted EBITDA of €100 million on sales of €734 million, while Coating Solutions delivered adjusted EBITDA of €52 million on sales of €405 million, with margins expanding 160 basis points year-over-year.

Primary Materials recorded adjusted EBITDA of €35 million on sales of €358 million, missing estimates of €39 million due to low acrylic monomer spreads.

Third-quarter operating cash flow fell to €239 million from €338 million a year earlier, while free cash flow dropped to €113 million from €185 million in the prior-year period. Net debt, including hybrid bonds, reached €3.51 billion, translating into a leverage ratio of 2.8 times net debt to EBITDA. 

Arkema reaffirmed its capital expenditure target of under €600 million and maintained its goal for major projects to contribute €50 million versus 2025.