Syensqo reported first-quarter earnings that exceeded analyst expectations, driven by a strong performance in its Materials division.
Group adjusted EBITDA came in at €251 million, 5% above company-compiled consensus, with a margin of 17.9%, ahead of the 17.4% analysts had forecast. The margin declined from 18.5% a year earlier.
The Materials division delivered EBITDA of €215 million, 8% above consensus, with a margin of 26.1%, compared with the 24.9% analysts had penciled in. Both Specialty Polymers and Composite Materials contributed to the sequential improvement in profitability.
Performance & Care posted EBITDA of €82 million, 5% above consensus, with a margin of 16.4% against the 16.0% forecast.
Syensqo reiterated its full-year underlying EBITDA guidance of €1.1 billion, ahead of the €1.08 billion consensus. Low single-digit volume growth is expected for the year, led by Composite Materials.
The company also tightened its capital expenditure outlook to around €450 million from a prior target of below €500 million, and guided for free cash flow of approximately €700 million.
Management noted that Q1 is expected to be the weakest quarter of the year, with improving order book trends in Q2 and a gradual recovery in year-on-year volumes supporting a stronger second half.
Goldman Sachs analysts said, "A small but quality beat driven by key Materials divisions, with an unchanged FY26 outlook and a capex guidance trim. We think this meets the minimum required today, after beats from peers this season and given how low expectations were reset at FY25."
