Solvay SA Overview
| Metric | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|
| Employees (approx., headcount) | 9,000 | 9,000 | 8,700 | 8,400 |
Note: FY2023–FY2025 are approximations from company communications; the FY2025 figure is an interpolation and should be treated as not publicly verified. FY2026 (~8,400) is stated in every 2026 Solvay press release. The FY2025 media presentation references a workforce trajectory toward ~9,000 "by 2027" in a context that could not be fully parsed.
Solvay is a 163-year-old Belgian producer of essential, largely commoditised inorganic and mid-chain chemicals whose franchise rests on scale, cost position and process know-how rather than proprietary molecules. Post-demerger, the group is anchored by two global leaderships — soda ash and its derivatives (including sodium bicarbonate) and hydrogen peroxide — complemented by highly dispersible silica for fuel-efficient tyres, the Brazil-based Coatis phenol/solvents chain, and a Special Chem unit housing rare earths and fluorine. With €4.3 billion of underlying sales and an EBITDA margin that has stayed above 20% through a severe soda ash downcycle, Solvay positions itself as a cash-generating, dividend-paying "essential chemistry" company. Its equity story now pivots on three levers: structural cost reduction (€300 million cumulative by end-2026), decarbonisation of coal-fired soda ash plants, and optionality in Western rare earths separation at La Rochelle — an asset increasingly seen as strategic outside China.
Company's own description
Solvay describes itself as "a pioneering chemical company with a legacy rooted in founder Ernest Solvay's pivotal innovations in the soda ash process," delivering essential solutions that address needs such as purifying air and water, preserving food, protecting health, making tyres more sustainable, and cleaning and protecting homes. Its corporate purpose, as presented with FY2025 results, is "essential chemistry, making progress possible for generations," executed through four strategic levers: operational excellence, energy transition, process innovation and production capacity (Source: FY2025 media presentation, 24 Feb 2026).
Independent characterisation
Solvay is today a mid-cap, cyclical, largely B2B commodity and intermediate chemicals producer. Roughly 60% of sales and around two-thirds of segment EBITDA come from Basic Chemicals (soda ash, bicarbonate, peroxides), where pricing is set by global supply-demand balances — notably the seaborne soda ash market, which has been depressed by Chinese and Turkish capacity additions. The remaining ~40% of sales (Performance Chemicals) are more differentiated (silica for tyres, rare earths formulations, autocatalyst materials, fluorine specialties, phenol/solvent chain) but smaller and more volatile in margin.
Business and revenue model
| Dimension | Characterisation |
|---|---|
| Revenue mix | ~100% product sales; no material service, subscription or licensing revenue disclosed. Minor technology/licensing elements exist (e.g., samarium process technology supplied to Permag, 2025) but are not separately reported |
| Contract structure | Soda ash: largely annual contracts in Europe/US, spot/short-term in seaborne Asia; peroxides: long-term on-site/captive supply to HPPO (propylene oxide) plants plus merchant sales; silica: multi-year qualifications with tyre makers |
| Value chain position | Upstream/mid-stream: converts salt, limestone, trona, hydrogen, natural gas/energy and mineral concentrates into base inorganic chemicals and intermediates |
| Cost drivers | Energy (gas, coal, power), CO2 allowances (EU ETS), freight, raw materials (limestone, salt, trona, ore concentrates), fixed costs |
| Customer types | Glass manufacturers (flat, container, solar), detergent producers, chemical companies, tyre makers, pulp & paper, electronics/semiconductor fabs, food/feed/pharma, flue gas treatment operators, mining, automotive catalysts, magnet makers |
| End-markets | Construction and automotive glass, solar glass, consumer goods (detergents), food & pharma (bicarbonate), environment (flue gas treatment, water), semiconductors (electronic-grade H2O2), mobility (tyres, catalysts, EV magnets), agro and coatings (solvents) |
Segment business descriptions (as defined by Solvay)
Basic Chemicals: Soda Ash & Derivatives and Peroxides businesses.
Performance Chemicals: Coatis, Silica and Special Chem businesses (Source: Q1/Q2/FY2025 media presentations).
Corporate & Business Services: corporate functions, energy services and other.
Strategy
Stated strategy themes (FY2025 annual reporting and presentations)
-
Purpose: essential chemistry making progress possible for generations ("Essential for Generations").
-
Four levers: operational excellence (structural cost savings, safety), energy transition (coal exit at soda ash plants), process innovation (low-carbon soda ash, rare earth separation technology), production capacity (selective growth in bicarbonate, peroxides, e-grade H2O2, rare earths).
-
Capital allocation policy (from November 2023 CMD, retained): priority to safety/maintenance capex and the dividend ("stable to increasing" policy per 2025 AGM letter), then growth and energy transition capex, with a commitment to an investment-grade rating.
Medium-term targets (2028, set Nov 2023; confirmed March 2025)
| Target | Status |
|---|---|
| Underlying EBITDA mid-single-digit annual growth to 2028 | Confirmed in March 2025; 2025–2026 actuals and guidance materially below trajectory |
| Underlying EBITDA margin and ROCE targets | Confirmed March 2025 (specific levels not re-verified) |
| Gross structural savings annual run-rate | Raised from €300 million to €350 million (March 2025) |
| Cumulative structural savings | €211 million end-2025; ~€300 million targeted end-2026 |
| FCF conversion ratio target | Replaced by the capital allocation policy (March 2025) |
Strategic initiatives (last 24 months)
| Initiative | Date | Details |
|---|---|---|
| Structural cost programme | 2024–2026 | €101 million savings in 2025; €26 million in Q2 2026; €233 million cumulative at Q1 2026 |
| Transformation programme | 2025–2026 | Transformation expenses: €27 million EBITDA / €71 million FCF impact (2025); ~€40 million EBITDA and ~€90 million FCF in 2026 guidance |
| Rare earths scale-up | 2025–2026 | New La Rochelle line (2025); Dy/Tb industrial separation from autumn 2026; €15–20 million expansion; target to supply 30% of the European magnet-grade rare earths market by 2030 |
| Rare earths partnership exploration | Sept 2026 | Talks with Abu Dhabi-based OneIM (not a full sale, per source cited by Agefi-Dow Jones) |
| US rare earths ambition | Nov 2025 | CEO indicated interest in building a US processing plant given stronger financial support there |
| Electronic chemicals | 2025–2026 | Zhenjiang doubling (2025); Taiwan more than doubling (2026); next phase under discussion |
| Energy transition capex | 2,025 | €26 million allocated to energy transition in 2025 |
| Hydrogen storage | July 2025 | Partnership with Enagás for Spain's first salt-cavern hydrogen storage hub |
| Footprint optimisation | 2024–2028 | Salindres closure, German consolidation, Torrelavega capacity cut |
| CO2 allowance portfolio optimisation | 2025–2026 | Contributed to 2025 EBITDA; similar impact planned in 2026 |
Guidance
| Item | 2025 (actual) | 2026 guidance |
|---|---|---|
| Underlying EBITDA | €881 million | €770–850 million (incl. ~€20 million FX headwind at 1.20 EUR/USD and ~€40 million transformation expenses) |
| FCF to shareholders, continuing | €350 million | ≥€200 million, net of ~€90 million transformation expenses |
| Capex | €292 million | ~€300 million |
| Cumulative structural savings | €211 million | ~€300 million |
Guidance was confirmed in May and July 2026, conditional on the Jubail peroxide plant restarting during Q3 2026.
Products & Services
Basic Chemicals — Soda Ash & Derivatives
| Product line | Description & capabilities | Target customers | Notes |
|---|---|---|---|
| Dense soda ash (sodium carbonate) | Produced via the Solvay (ammonia-soda) synthetic process in Europe and from natural trona in Green River, Wyoming (USA) | Flat glass (construction, automotive), container glass, solar glass | Global leadership position; prices under pressure in seaborne markets 2024–2026 |
| Light soda ash | Lower bulk density grade | Detergents, chemicals, metallurgy | Annual contracts in Europe |
| Sodium bicarbonate (BICAR® range) | Food, pharmaceutical (haemodialysis, effervescents), animal feed grades | Food, pharma, feed, personal care | Grew in 2025 despite soft markets (FY2025 release) |
| SOLVAir® flue gas treatment | Sodium bicarbonate-based dry sorbent injection for SOx/HCl removal | Waste-to-energy plants, industrial boilers, marine | Resilient growth driver; Q1 2025 call cited flue gas treatment as a megatrend |
| Calcium chloride and other derivatives | By-products of the Solvay process | De-icing, oil & gas, food | — |
| e.Solvay (process innovation) | Lower-CO2 soda ash process concept under development (company communications) | Internal | — |
Pricing model: annual contract pricing for most European and North American volumes; spot/short-term in Southeast Asia seaborne markets. Exact price levels not disclosed.
Basic Chemicals — Peroxides
| Product line | Description & capabilities | Target customers | Notes |
|---|---|---|---|
| Bulk hydrogen peroxide (Interox® legacy brand) | Bleaching, oxidation, disinfection | Pulp & paper, textiles, chemicals, mining, water treatment | Global top-tier producer |
| HPPO-dedicated mega-plants | Captive H2O2 supply for propylene oxide production | Dow/BASF/Sadara-linked PO plants (Antwerp, Map Ta Phut, Jubail) | Jubail JV (with Sadara Chemical, itself Aramco/Dow) capacity >300,000 t/yr; halted from mid-March 2026 (Reuters, May 2026) |
| Electronic-grade hydrogen peroxide | Ultra-high-purity grades for wafer cleaning | Semiconductor fabs, flat-panel, PV, MEMS/LED | Zhenjiang (China) capacity doubled Sept 2025; Taiwan (Shinsol JV) to more than double by end-2026 |
| Peracetic acid (Proxitane® legacy brand) | Disinfectant/sanitiser | Food & beverage, healthcare, water | — |
| Chile peroxide capacity | Capacity expansion completed 2025 | South American mining, pulp | Q2 2025 media presentation |
Performance Chemicals — Silica
| Product line | Description & capabilities | Target customers | Notes |
|---|---|---|---|
| Highly dispersible silica (Zeosil® legacy brand) | Reinforcing filler that lowers rolling resistance and improves wet grip | Passenger and truck tyre makers (OEM and replacement) | "Green tyre" leader; EU tyre labelling supports demand |
| Bio-circular silica | Silica produced from rice husk ash (Livorno, Italy, legacy project) | Tyre makers with sustainability targets | Launch status per 2023 communications |
| Specialty silica | Oral care, food, battery separators, coatings | Consumer goods, industrials | — |
Leadership: Adam Days appointed GBU President Silica effective 1 October 2026, following the departure of An Nuyttens (Solvay press release, Sept/Oct 2026).
Performance Chemicals — Coatis (Brazil)
| Product line | Description | Target customers | Notes |
|---|---|---|---|
| Phenol and acetone | Cumene-route phenol chain at Paulínia (São Paulo state) | Resins, polycarbonate, coatings | Net pricing weak in H2 2025; recovering Q2 2026 |
| Oxygenated and green solvents (Augeo® legacy brand) | Bio-based and conventional solvents | Coatings, agro, cleaning | Exposed to Brazilian and Latin American cycles |
| Phenolic derivatives | Intermediates | Chemical industry | S&P (June 2026) notes Coatis operates in the phenolic/polyamide chain |
Performance Chemicals — Special Chem
| Product line | Description & capabilities | Target customers | Notes |
|---|---|---|---|
| Rare earth separation & oxides | La Rochelle (France) — one of the few sites outside China able to separate all 17 rare earth elements at industrial scale | Magnet makers, electronics, lighting, defence | New magnet-element line inaugurated April 2025; industrial Dy/Tb separation from autumn 2026; €15–20 million further investment approved (Q2 2026) |
| Rare earth formulations | Cerium/lanthanum-based formulated products | Polishing, catalysis, electronics | Legacy Rhodia know-how (>75 years) |
| Automotive catalyst materials | Cerium-zirconium mixed oxides for exhaust catalysts | Catalyst makers, auto OEMs | Autocatalysis down YoY in Q1 2025 (earnings call) |
| Samarium technology | Proprietary process for pure samarium oxide (licensed/applied with Permag) | SmCo magnet makers | Permag/LCM deal (Nov 2025) |
| Inorganic fluorine specialties | Fluorinated inorganics | Electronics, metallurgy | TFA and derivatives exited by early 2026 (Salindres closed; Bad Wimpfen TFA ended); hydrogen fluoride at Bad Wimpfen phased out by late 2026 |
| Precious metals recycling | Palladium recycling project in Italy (Q1 2025 media presentation) | Catalyst/automotive | Project scale not disclosed |
Pricing model disclosure
Solvay does not publish list prices. Pricing is market/contract-based; the company reports "net pricing" (price minus variable cost) as a driver in its EBITDA bridges.
Product Portfolio
| Product line | Description & capabilities | Target customers | Notes |
|---|---|---|---|
Dense soda ash (sodium carbonate) | Produced via the Solvay (ammonia-soda) synthetic process in Europe and from natural trona in Green River, Wyoming (USA) | Flat glass (construction, automotive), container glass, solar glass | Global leadership position; prices under pressure in seaborne markets 2024–2026 |
Light soda ash | Lower bulk density grade | Detergents, chemicals, metallurgy | Annual contracts in Europe |
Sodium bicarbonate (BICAR® range) | Food, pharmaceutical (haemodialysis, effervescents), animal feed grades | Food, pharma, feed, personal care | Grew in 2025 despite soft markets (FY2025 release) |
SOLVAir® flue gas treatment | Sodium bicarbonate-based dry sorbent injection for SOx/HCl removal | Waste-to-energy plants, industrial boilers, marine | Resilient growth driver; Q1 2025 call cited flue gas treatment as a megatrend |
Calcium chloride and other derivatives | By-products of the Solvay process | De-icing, oil & gas, food | — |
e.Solvay (process innovation) | Lower-CO2 soda ash process concept under development (company communications) | Internal | — |
“—” = not publicly disclosed.
| Product line | Description & capabilities | Target customers | Notes |
|---|---|---|---|
Bulk hydrogen peroxide (Interox® legacy brand) | Bleaching, oxidation, disinfection | Pulp & paper, textiles, chemicals, mining, water treatment | Global top-tier producer |
HPPO-dedicated mega-plants | Captive H2O2 supply for propylene oxide production | Dow/BASF/Sadara-linked PO plants (Antwerp, Map Ta Phut, Jubail) | Jubail JV (with Sadara Chemical, itself Aramco/Dow) capacity >300,000 t/yr; halted from mid-March 2026 (Reuters, May 2026) |
Electronic-grade hydrogen peroxide | Ultra-high-purity grades for wafer cleaning | Semiconductor fabs, flat-panel, PV, MEMS/LED | Zhenjiang (China) capacity doubled Sept 2025; Taiwan (Shinsol JV) to more than double by end-2026 |
Peracetic acid (Proxitane® legacy brand) | Disinfectant/sanitiser | Food & beverage, healthcare, water | — |
Chile peroxide capacity | Capacity expansion completed 2025 | South American mining, pulp | Q2 2025 media presentation |
“—” = not publicly disclosed.
| Product line | Description & capabilities | Target customers | Notes |
|---|---|---|---|
Highly dispersible silica (Zeosil® legacy brand) | Reinforcing filler that lowers rolling resistance and improves wet grip | Passenger and truck tyre makers (OEM and replacement) | "Green tyre" leader; EU tyre labelling supports demand |
Bio-circular silica | Silica produced from rice husk ash (Livorno, Italy, legacy project) | Tyre makers with sustainability targets | Launch status per 2023 communications |
Specialty silica | Oral care, food, battery separators, coatings | Consumer goods, industrials | — |
“—” = not publicly disclosed.
| Product line | Description | Target customers | Notes |
|---|---|---|---|
Phenol and acetone | Cumene-route phenol chain at Paulínia (São Paulo state) | Resins, polycarbonate, coatings | Net pricing weak in H2 2025; recovering Q2 2026 |
Oxygenated and green solvents (Augeo® legacy brand) | Bio-based and conventional solvents | Coatings, agro, cleaning | Exposed to Brazilian and Latin American cycles |
Phenolic derivatives | Intermediates | Chemical industry | S&P (June 2026) notes Coatis operates in the phenolic/polyamide chain |
| Product line | Description & capabilities | Target customers | Notes |
|---|---|---|---|
Rare earth separation & oxides | La Rochelle (France) — one of the few sites outside China able to separate all 17 rare earth elements at industrial scale | Magnet makers, electronics, lighting, defence | New magnet-element line inaugurated April 2025; industrial Dy/Tb separation from autumn 2026; €15–20 million further investment approved (Q2 2026) |
Rare earth formulations | Cerium/lanthanum-based formulated products | Polishing, catalysis, electronics | Legacy Rhodia know-how (>75 years) |
Automotive catalyst materials | Cerium-zirconium mixed oxides for exhaust catalysts | Catalyst makers, auto OEMs | Autocatalysis down YoY in Q1 2025 (earnings call) |
Samarium technology | Proprietary process for pure samarium oxide (licensed/applied with Permag) | SmCo magnet makers | Permag/LCM deal (Nov 2025) |
Inorganic fluorine specialties | Fluorinated inorganics | Electronics, metallurgy | TFA and derivatives exited by early 2026 (Salindres closed; Bad Wimpfen TFA ended); hydrogen fluoride at Bad Wimpfen phased out by late 2026 |
Precious metals recycling | Palladium recycling project in Italy (Q1 2025 media presentation) | Catalyst/automotive | Project scale not disclosed |
Financial Narrative
Comparability: FY2021 is not available on the post-demerger perimeter and is excluded from chartable tables (not publicly disclosed on a comparable basis). FY2022 figures are as published by Solvay for the essential perimeter (income statement) but balance sheet FY2022 data reflect the pre-spin group (flagged). Sources: Solvay "Historical key figures" page; FY2023, FY2024, FY2025 results releases.
Income statement
FY2023 IFRS profit includes the non-cash gain on the Syensqo demerger.
Margins (%)
Net sales CAGR FY2022–FY2025: -8.4% (computed). EBITDA CAGR FY2022–FY2025: -13.5% (computed).
Dividends per share (gross, EUR)
FY2023–FY2025: verified (AGM documents 2024–2026).
Cash flow
Dividends paid: FY2024 "approximately €260 million" per 2025 AGM shareholder letter; FY2025 approximated by the analyst from €2.43 × ~104.6 million shares (not reported figure). FY2025 FCF was net of €71 million transformation cash costs.
Balance sheet
FY2022 balance sheet = pre-spin group (includes Syensqo businesses; underlying net debt includes perpetual hybrids). FY2025 net debt reported as "stable at €1.6 billion" (rounded). Net debt rose to €1.8 billion at 30 June 2026 (leverage 2.3x) after dividend payments (Q2 2026 release). Total assets, cash, gross short/long-term debt split, goodwill and intangibles: not publicly disclosed in sources reviewed. Senior bonds outstanding identified: €750 million 3.875% due 2028 and €750 million 4.250% due 2031 (Solvay IR bond page).
Ratios
ROA, ROIC (as distinct from ROCE), current ratio, interest coverage, asset turnover and cash conversion cycle: not publicly disclosed in sources reviewed. The very high ROE reflects the small post-demerger equity base (€1.3–1.4 billion), not exceptional economics.
Commentary — trends, inflections, drivers
Revenue. Sales fell from €5.5 billion (2022) to €4.3 billion (2025). The 2023 decline (-12.6% organic) was volume-driven as destocking hit; 2024 (-4% reported) was price-driven as soda ash annual contracts reset lower; 2025 (-6.5% organic) combined seaborne soda ash weakness, Coatis softness and FX (weaker USD and BRL). The trend continued into 2026 (Q1 -8.5% organic, Q2 -7.4% organic), with the Middle East conflict adding a discrete hit via the Jubail peroxide shutdown.
EBITDA. The 2023 margin peak (25.5%) reflected positive net pricing as energy costs fell faster than selling prices. Since then, net pricing turned negative, partly offset by structural cost savings (€80 million+ in 2024, €101 million in 2025, €211 million cumulative by end-2025, €233 million by Q1 2026). The FY2025 margin of 20.7% remains respectable for a commodity chemicals portfolio and above many European peers.
Net profit. Underlying profit from continuing operations fell by more than half from 2022 to 2025 (€740 million → €306 million), amplified by higher depreciation relative to EBITDA, financial charges on the refinanced bonds and transformation expenses. IFRS results are noisier (restructuring provisions, Salindres €50 million, German restructuring ~€25 million mainly in 2026).
Cash. Free cash flow has been the most resilient metric: €350 million in 2025 against guidance of ~€300 million, aided by working capital release and capex discipline (€292 million vs. €300–350 million initially planned). However, 2026 guidance (≥€200 million, net of ~€90 million transformation costs) no longer covers the ~€255 million dividend, and H1 2026 FCF was only €15 million.
Balance sheet. Leverage has crept from 1.2x (2023) to 1.8x (2025) and 2.3x (June 2026, on H1 run-rate). S&P expects rating headroom to narrow in 2026 and recover in 2027 (June 2026 tear sheet). This is the key financial inflection to monitor.
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Segment Overview
| Segment | Businesses | Main products |
|---|---|---|
Basic Chemicals | Soda Ash & Derivatives; Peroxides | Light and dense soda ash, sodium bicarbonate (food, pharma, feed, flue gas treatment), calcium chloride and derivatives; hydrogen peroxide (bulk, HPPO captive, electronic grade), peracetic acid |
Performance Chemicals | Silica; Coatis; Special Chem | Highly dispersible precipitated silica; phenol, acetone, solvents (incl. bio-based) in Brazil; rare earth oxides and formulations, autocatalyst materials, inorganic fluorine specialties, precious metals recycling |
Corporate & Business Services | Corporate; energy services | Holding costs, energy management, CO2 portfolio optimisation |
Revenue by Segment
| Segment (EUR Mn) | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Basic Chemicals net sales | 2,994 | 2,726 | 2,842 | 2,629 |
Performance Chemicals net sales | 2,542 | 2,148 | 1,834 | 1,632 |
Corporate net sales | 4 | 6 | 10 | 0 |
Group net sales | 5,539 | 4,880 | 4,686 | 4,262 |
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View Subscription PlansResults by Segment
| Segment (EUR Mn) | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Basic Chemicals EBITDA | 859 | 916 | 786 | 614 |
Performance Chemicals EBITDA | 414 | 405 | 324 | 307 |
Corporate EBITDA | 86 | -75 | -58 | -40 |
Group underlying EBITDA | 1,359 | 1,246 | 1,052 | 881 |
Segment Margins & Growth (%) and Revenue by Segment (%)
| Metric (%) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Basic Chemicals EBITDA margin | 33.6 | 27.7 | 23.4 |
Performance Chemicals EBITDA margin | 18.9 | 17.7 | 18.8 |
Basic Chemicals share of group sales | 55.9 | 60.6 | 61.7 |
Performance Chemicals share of group sales | 44.0 | 39.1 | 38.3 |
Basic Chemicals sales growth YoY (reported) | -9.0 | 4.3 | -7.5 |
Performance Chemicals sales growth YoY (reported) | -15.5 | -14.6 | -11.0 |
Revenue by Segment (Quarterly)
| Metric (EUR Mn) | Q1 2026 | Q2 2026 | H1 2026 |
|---|---|---|---|
Underlying net sales | 997 | 1,031 | 2,028 |
Underlying EBITDA | 219 | 187 | 406 |
Underlying net profit, continuing | 78 | 64 | 142 |
Free cash flow to shareholders | 26 | -11 | 15 |
Income Statement and Per-Share Data
| Metric (EUR Mn) | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Net sales | 5,539 | 4,880 | 4,686 | 4,262 |
Underlying EBITDA | 1,359 | 1,246 | 1,052 | 881 |
Underlying EBIT | 1,038 | 926 | 732 | — |
Underlying net profit, continuing | 740 | 588 | 445 | 306 |
IFRS profit attributable to Solvay shareholders (incl. discontinued) | 1,934 | 2,105 | 233 | — |
Basic EPS continuing (EUR) | 6.99 | 5.55 | 4.10 | — |
Margin Analysis (%)
| Metric (%) | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Underlying EBITDA margin | 24.5 | 25.5 | 22.5 | 20.7 |
Underlying EBIT margin | 18.7 | 19.0 | 15.6 | — |
Underlying net margin (continuing) | 13.4 | 12.0 | 9.5 | 7.2 |
Per-Share Data
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Gross dividend per share (EUR) | 3.85 | 4.05 | 2.43 | 2.43 | 2.43 |
Cash Flow and Margin Analysis (%)
| Metric (EUR Mn) | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Capex, continuing operations | 380 | 450 | 355 | 292 |
FCF to Solvay shareholders, continuing | 479 | 561 | 361 | 350 |
Cash conversion (%) | 72 | 64 | 66 | — |
Dividends paid (approx.) | — | — | 260 | 255 |
Income Statement
| Metric (EUR Mn) | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Underlying net debt | 3,591 | 1,489 | 1,544 | 1,600 |
IFRS equity | 10,664 | 1,305 | 1,404 | — |
Net working capital | 1,969 | 509 | 577 | — |
Underlying leverage (net debt / EBITDA, x) | 1.1 | 1.2 | 1.5 | 1.8 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
ROCE (%) | 22.9 | 20.4 | 17.6 | — |
ROE, underlying profit / closing equity (%) | — | 45.1 | 31.7 | — |
Net debt / EBITDA (x) | 1.1 | 1.2 | 1.5 | 1.8 |
Net debt / equity (x) | — | 1.14 | 1.10 | — |
Net working capital / sales (%) | 12.6 | 9.5 | 11.6 | — |
Segment / Business Details
| Segment / business | Europe | North America | Latin America | Asia-Pacific | Middle East |
|---|---|---|---|---|---|
Soda ash & derivatives | Major synthetic plants (France, Germany, Spain, Italy, Bulgaria — per company footprint) | Natural soda ash, Green River (Wyoming) | — | Export (seaborne) market; bicarbonate | Minor |
Peroxides | Multiple plants incl. HPPO-linked Antwerp | US plants | Chile expansion (2025) | China (Zhenjiang), Thailand (HPPO), Taiwan (Shinsol JV) | Jubail (Saudi Arabia) JV |
Silica | France, Italy | USA | Brazil | China, Korea | — |
Coatis | — | — | Brazil (Paulínia) | — | — |
Special Chem | France (La Rochelle), Germany (Bad Wimpfen) | Rare earth customers (Noveon, Permag, Arnold) | Brazil feedstock (Viridis LOI) | — | — |
“—” = not publicly disclosed.
Valuation Snapshot
| Metric | Value | Source |
|---|---|---|
Share price (19 Oct 2026) | ~€24.65 (Lang & Schwarz); Euronext close 16 Oct €25.18 | ad-hoc-news |
52-week range | €23.54–€29.86 (one source cites €29.16 high) | Investing.com via ad-hoc-news |
1-year price change | ~-8.6% | StockAnalysis (Oct 2026) |
Shares outstanding | ~104.6 million | StockAnalysis |
Market cap | ~€2.6 billion | Multiple |
Enterprise value | ~€4.5 billion | StockAnalysis |
Beta | ~0.26–0.56 (sources differ) | StockAnalysis / TradingView |
Market Valuation
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Market cap at year-end (EUR Bn) | 10.54 | 9.79 | 2.89 | 3.25 | 2.84 |
Valuation Snapshot by Multiple
| Multiple | Value | Basis |
|---|---|---|
EV/EBITDA | 5.1x | FY2025 underlying EBITDA €881 million |
EV/EBITDA | 5.6x | 2026 guidance midpoint €810 million |
EV/Sales | 1.06x | FY2025 sales |
P/E (underlying) | ~8.4x | FY2025 underlying profit €306 million / ~104.6 million shares (~€2.93 per share) |
P/B | ~1.9x | — |
Dividend yield | ~9.9% | €2.43 gross |
Capital Markets
| Item | Value | Source |
|---|---|---|
Average price target | ~€24.8–24.9 (15 analysts) | Investing.com / StockAnalysis, Oct 2026 |
Consensus rating | "Sell" | StockAnalysis, Oct 2026 |
Company-compiled consensus (Jan 2026) | 17 participants; median target €26.00; 24% Buy, 29% Hold, 47% Sell | Solvay Pre-Q4 2025 consensus |
Bernstein | Hold, €25.60 (14 Oct 2026) | Markets Insider via ad-hoc-news |
Consensus 2026E EBITDA (Jan 2026) | €824 million | Solvay consensus document |
Consensus 2027E EBITDA (Jan 2026) | €892 million | Solvay consensus document |
Credit Ratings
| Agency | Rating | Outlook | Notes |
|---|---|---|---|
S&P | BBB- / A-3 | Stable | Lowered from BBB on 11 Dec 2023 post-demerger; June 2026 tear sheet expects reduced headroom in 2026 and recovery in 2027 |
Moody's | Not rated / not disclosed | — | CreditSights shows NR |
Fitch | Not rated | — | CreditSights shows NR |
Capital Instruments
| Instrument | Amount | Coupon | Maturity |
|---|---|---|---|
Senior fixed-rate bond | €750 million | 3.875% | 2028 |
Senior fixed-rate bond | €750 million | 4.250% | 2031 |
Other legacy instruments (Solvay Finance, Solvay Finance America) | — | — | Per Solvay IR bond page |
Analyst Conclusions
Management guidance (2026, confirmed July 2026)
Underlying EBITDA €770–850 million; FCF to shareholders ≥€200 million net of ~€90 million transformation costs; capex ~€300 million; cumulative savings ~€300 million — all assuming the Jubail peroxide plant restarts in Q3 2026. H1 2026 EBITDA of €406 million implies H2 of €364–444 million to land in range.
Consensus expectations
Company-compiled consensus (Jan 2026) projected 2026 sales of €4,231 million and EBITDA of €824 million, rising to €4,348 million and €892 million in 2027. Aggregator forecasts imply 3-year revenue growth of roughly -3% per year.
Bull case
-
Rare earths crystallisation: A OneIM partnership could value La Rochelle at a level that is significant relative to a ~€2.6 billion market cap, while funding growth off balance sheet; US offtakes start in 2026.
-
Self-help and cycle trough: €300 million cumulative savings, capacity rationalisation and a likely trough in seaborne soda ash could drive EBITDA back toward €900 million in 2027 (consensus €892 million), at ~5x EV/EBITDA.
-
Cash-yield support: Even at reduced levels, FCF of €200–350 million on a €2.6 billion market cap is an 8–13% FCF yield, with a ~10% dividend yield backed by a family anchor shareholder committed to the dividend.
Bear case
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Dividend at risk: 2026 FCF guidance does not cover the ~€255 million dividend; leverage at 2.3x and BBB- rating leave limited room — a cut would likely follow any further downgrade.
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Structural soda ash decline: Low-cost natural soda ash from Turkey, the US and China keeps seaborne prices depressed; European synthetic plants face carbon costs and capacity cuts.
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Geopolitical/execution risk: Jubail restart timing is outside Solvay's control; rare earth feedstock rests on non-binding LOIs; Chinese pricing could erode separation economics.
Catalysts and monitorables (next 12 months)
-
Q3 2026 results on 4 November 2026: Jubail restart, guidance confirmation, net debt trajectory.
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Outcome of OneIM talks (structure, valuation, control).
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Start of industrial Dy/Tb separation at La Rochelle (autumn 2026) and Viridis definitive agreement.
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FY2026 results (~February 2027): 2027 guidance and dividend proposal for FY2026.
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S&P review of BBB- rating; leverage vs. 2.0x.
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Activity of new holders (SIH Partners 5.10%, Greenlight 5.28%, Citigroup 3.09%).
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Seaborne soda ash pricing and 2027 annual contract negotiations.
-
Coatis recovery and Brazilian real.
Analyst verdict
Solvay in late 2026 is a well-run but shrinking commodity chemicals company trading at distressed-cyclical multiples. The post-demerger thesis — a cash-rich essential-chemicals business funding a stable €2.43 dividend — has been strained by three years of falling earnings: underlying EBITDA has dropped from €1.36 billion in 2022 to an expected €770–850 million in 2026, and leverage has risen to 2.3x. Management has executed credibly on what it controls — cost savings are tracking to ~€300 million, capex has been disciplined, free cash flow repeatedly beat guidance in 2024–2025, and Scope 1&2 emissions are already down 29% versus 2021 — but it cannot control seaborne soda ash pricing, the US dollar, or a Middle East conflict that idled one of its largest peroxide plants.
At roughly 5–6x EV/EBITDA and ~8x underlying earnings, the market already prices in a prolonged downcycle and, implicitly, a dividend reset. The near-10% gross yield signals that investors doubt its sustainability; 2026 FCF guidance supports that scepticism. A cut would remove an overhang but likely hit the share price first.
The asymmetric element is rare earths. La Rochelle is a genuinely scarce Western asset, and the OneIM talks, US offtakes and Dy/Tb start-up give Solvay a credible route to surface value that is invisible in group EBITDA (Special Chem, including fluorine, is ~15% of sales). A well-structured partnership could fund growth without straining the BBB- balance sheet.
Overall stance: Neutral (Hold), with a positive bias for investors willing to underwrite the rare earths optionality and a cyclical soda ash recovery in 2027, and a negative bias for income investors relying on the current dividend. The key decision points are the Q3 2026 print (Jubail restart and leverage) and the OneIM outcome; both should be clear within six months.
All figures are drawn from Solvay primary disclosures unless otherwise attributed.
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View Subscription PlansExecutive Leadership
Executive Leadership Team
| Name | Title | Tenure | Notes |
|---|---|---|---|
Philippe Kehren | Chief Executive Officer | Since December 2023 (demerger) | — |
Alexandre Blum | Chief Financial Officer | Post-demerger (presents all results since 2024) | — |
Carlos Silveira | President, Peroxides GBU | Current (Sept 2026 press release) | — |
Adam Days | GBU President, Silica | From 1 October 2026 | Appointed after An Nuyttens' departure |
An Nuyttens | Former GBU President Silica & Special Chem | Left in 2026 | Led rare earths commercial deals (Noveon, Permag) |
Geoffroy d'Oultremont | Head of Investor Relations | Current | — |
Governance Overview
| Item | Detail |
|---|---|
Chair | Pierre Gurdjian, independent director; chaired 2025 AGM; mandate renewed at 12 May 2026 AGM; remains Chair |
Board size / independence | 10 members, 6 independent non-executives (60%) — 2025 AGM shareholder letter |
CEO/Chair separation | Yes |
Committees | Audit & Risk, Finance, Compensation, Nomination (and others per Corporate Governance Charter); external Board evaluation every 3 years, last in 2025 |
Governance code | Belgian Corporate Governance Code 2020 |
Major Shareholders
| Holder | Stake (%) | Date / source |
|---|---|---|
Solvac SA (Solvay family holding) | 30.81 | Solvac disclosures; ~31.2% per Simply Wall St (2026) |
Greenlight Capital, Inc. | 5.28 | Simply Wall St, 2026 |
SIH Partners, LLLP | 5.10 (incl. financial instruments) | Transparency notification, 8 Oct 2026 |
Citigroup Inc. | 3.09 (0.43% voting rights + 2.66% instruments, crossed 24 Sept 2026) | Transparency notification, 1 Oct 2026 |
The Vanguard Group | ~2.86 | Simply Wall St, 2026 |
BNP Paribas Asset Management Europe | ~2.69 | Simply Wall St, 2026 |
American Century Investment Mgmt | ~1.8–2.0 | Simply Wall St, 2026 |
Capital at Work Int'l | ~1.5 | Simply Wall St, 2026 |
Norges Bank Investment Management | ~1.49 | Simply Wall St, 2026 |
Dimensional Fund Advisors | ~1.36 | Simply Wall St, 2026 |
Competitive Landscape
Competitors by Segment
| Business | Key competitors |
|---|---|
Soda ash | Şişecam (Turkey; incl. Ciner/Wyoming), WE Soda (Turkey), Genesis Alkali (USA), Tata Chemicals (India/USA/UK/Kenya), Inner Mongolia Boyuan and other Chinese producers, Qemetica (formerly CIECH, Poland), Novacarb/Seqens (France) |
Sodium bicarbonate / flue gas | Tata Chemicals, Qemetica, Chinese producers, Lhoist (lime-based alternatives) |
Hydrogen peroxide | Evonik, Arkema, Nouryon, Mitsubishi Gas Chemical, Chinese producers |
Electronic-grade H2O2 | Mitsubishi Gas Chemical, Evonik, Arkema, Taiwanese/Korean local players |
Precipitated silica | Evonik, PPG (silica business), Tokuyama, Wuxi Quechen, Madhu Silica |
Phenol/acetone (Brazil) | INEOS Phenol, imports from US/Asia |
Rare earths separation | Lynas Rare Earths, MP Materials, Neo Performance Materials, Iluka, Carester, Chinese state groups (China Northern Rare Earth, China Rare Earth Group) |
Peer Comparison FY2025
| Company | Revenue | Growth | EBITDA margin | R&D intensity | Source/flag |
|---|---|---|---|---|---|
Solvay (FY2025) | €4.26 billion | -9.0% reported / -6.5% organic | 20.7% | — | Solvay FY2025 |
Evonik (FY2024) | ~€15.2 billion | — | ~13–14% (adj.) | ~3% | — |
Arkema (FY2024) | ~€9.5 billion | — | ~15–16% | ~3% | — |
“—” = not publicly disclosed.
