SOLB Solvay SA

Solid EBITDA and free cash flow supported by cost savings acceleration

Brussels, March 6, 2025, 7.00am CET

Highlights

• “Essential for Generations”: Solvay’s ambition is to be a leader in Essential Chemistry. Despite challenging market conditions in 2024, we proved the resilience of our business and our strong execution, delivering solid results. This allows us to confirm our 2028 EBITDA mid-single digit annual growth target. 
• Launch of the “For Generations” roadmap, defining the foundations of Sustainability at Solvay. 
• Underlying net sales in Q4 2024 were slightly up (+0.5% organically) compared to Q4 2023 despite lower pricing, with continued year-on-year growth in volumes for certain businesses such as Bicarbonate and Peroxides. Full year 2024 underlying net sales amounted to €4,686 million, down -4.0% organically versus 2023, with a positive impact from volumes for the fourth consecutive quarter, while prices were down year on year. 
• Underlying EBITDA in Q4 2024 increased year-on-year to €256 million (+2.0% organically), with 22.6% underlying EBITDA margin. Full year 2024 underlying EBITDA reached €1,052 million, down -8.2% organically, as positive volume and cost savings partially offset lower Net pricing. Underlying EBITDA margin was at 22.5% for the year.  
• Structural cost savings initiatives delivered €110 million in 2024, well above the target of €80 million thanks to the acceleration of savings initiatives at manufacturing sites and in corporate functions. 
• Underlying net profit from continuing operations was €445 million in 2024 vs. €588 million in 2023. 
• Free Cash Flow¹ amounted to €361 million in 2024, underpinned by the solid EBITDA performance and the working capital discipline, while Capex accelerated in Q4 2024, as planned, to reach €355 million for the full year. 
• Underlying Net Debt remained stable at €1.5 billion, implying a leverage ratio of 1.5x.
• Total proposed gross dividend of €2.43 per share, subject to shareholders’ approval during the next Ordinary General Meeting of May 13, 2025.
• 2025 Outlook: Solvay expects the underlying EBITDA to be between €1.0 billion and €1.1 billion, and the Free Cash Flow¹ to be around €300 million.

Note: 2023 figures were restated to reflect the changes mentioned in the introduction to Financial performance.

¹ Free Cash Flow (FCF) here is the free cash to Solvay shareholders from continuing operations.

Philippe Kehren, Solvay CEO

“Since Solvay's separation in December 2023, our teams have achieved a lot, and I extend my sincere thanks to every Solvay employee for their contributions. Our new purpose-driven culture is clearly driving our organization forward.

Despite a market environment that shows little signs of recovery, our position as an essential chemical player combined with our leadership positions in our core markets have enabled us to deliver a solid financial performance in 2024, once again demonstrating our resilience. This success is underpinned by continued year-on-year growth in volumes for businesses such as Bicarbonate and Peroxides, and significant cost savings achieved through our ongoing transformation and digitalization efforts.

We have also made significant strides in sustainability, by reaffirming our commitment to carbon neutrality, launching our ambitious "For Generations" roadmap, and continuing to advance new energy transition projects to reduce our environmental footprint.

With our clear strategy in place, we are confident in our ability to continue to meet our commitments, generate sustainable cash flow to reward shareholders, and strategically position Solvay for future growth."

2025 outlook

For 2025, current macroeconomic and geopolitical contexts do not suggest any significant volume recovery in Solvay main end markets. Solvay thus expects the trends of the latter part of the previous year to continue for at least the first semester. Net pricing is anticipated to be resilient compared to 2024, including the impact of the soda ash annual contracts.

In light of these external dynamics, management will continue to focus on the transformation of the company. Cost savings are expected to reach €200 million by year end (from €110 million at the end of 2024), offsetting both inflation and the temporary Corporate stranded costs expected in 2025 from the exit of the Transition Service Agreement with Syensqo.

In that context, Solvay expects its full year 2025 underlying EBITDA to be between €1.0 billion and €1.1 billion (representing an organic growth of -5 to +5% using EUR/USD rate of 1.05). Free cash flow to Solvay shareholders from continuing operations is expected to be around €300 million. Capex are expected to be between €300 million to €350 million, and provision cash-out will increase by more than €50 million year-on-year, mainly due to planned payments for the Dombasle energy transition project, accrued for in prior years.

2028 financial targets

Solvay has a profile that allows the company to deliver top quartile and resilient financial performance over the years. Its focused strategy will enable Solvay to continue generating sustainable cash flows and attractive returns, while preparing the future growth of the company.

After a first successful year post spinoff, Solvay confirms its 2028² underlying EBITDA growth, underlying EBITDA margin and ROCE targets, increases its gross savings annual run-rate target from €300 million to €350 million, and replaces its free cash flow conversion ratio target by the existing Capital Allocation policy, which confirms the company’s commitment towards free cash flow generation:

• Investing in essential capex, which will represent €250-300 million per year, including €30-35 million capex in energy transition projects
• Rewarding shareholders with stable to increasing dividends, with 2024 dividends at €260 million as a starting point
• Preparing for the future with a priority given to growth capex based on affordability and value creation, with an optionality for additional shareholder return
  
  

² Baseline is 2023 (restated underlying EBITDA of €1.15 billion)

“For Generations” sustainability roadmap launch

In 2024, Solvay defined its new For Generations roadmap, which sets the Sustainability agenda of the company, while aligning with the new Solvay profile and strategy. This roadmap is structured around two pillars - Planet progress, focused on climate and nature, and Better life, for people and communities. 

At Solvay, we create a sustainable impact for generations. Planet and Life are the past, present and future foundations of Essential Chemistry. We act to build trust and value for Solvay, its stakeholders and society.

For over 160 years, we have been mastering our technologies. Combining our expertise with our values, we will turn our sustainability ambition into reality. We will keep leading our industry with responsibility.

Financial calendar

• May 8, 2025: First quarter earnings
• May 13, 2025: Ordinary General Shareholders’ Meeting
• July 30, 2025: Second quarter and first half year 2025 earnings
• November 6, 2025: Third quarter and first nine months 2025 earnings
• Link to Solvay’s financial calendar
  
  

Details of analysts and investors conference call

• Time: March 6, 2025 - 2pm CET
• Registration: register to the webcast here.

About Solvay

Solvay, a pioneering chemical company with a legacy rooted in founder Ernest Solvay's pivotal innovations in the soda ash process, is dedicated to delivering essential solutions globally through its workforce of around 9,000 employees. Since 1863, Solvay harnesses the power of chemistry to create innovative, sustainable solutions that answer the world’s most essential needs such as purifying the air we breathe and the water we drink, preserving our food supplies, protecting our health and well-being, creating eco-friendly clothing, making the tires of our cars more sustainable and cleaning and protecting our homes. As a world-leading company with €4.7 billion in net sales in 2024 and listings on Euronext Brussels and Paris (SOLB), its unwavering commitment drives the transition to a carbon-neutral future by 2050, underscoring its dedication to sustainability and a fair and just transition. For more information about Solvay, please visit solvay.com or follow Solvay on Linkedin.

Safe harbor

This press release may contain forward-looking information. Forward-looking statements describe expectations, plans, strategies, goals, future events or intentions. The achievement of forward-looking statements contained in this press release is subject to risks and uncertainties relating to a number of factors, including general economic factors, interest rate and foreign currency exchange rate fluctuations, changing market conditions, product competition, the nature of product development, impact of acquisitions and divestitures, restructurings, products withdrawals, regulatory approval processes, all-in scenario of R&I projects and other unusual items. Consequently, actual results or future events may differ materially from those expressed or implied by such forward-looking statements. Should known or unknown risks or uncertainties materialize, or should our assumptions prove inaccurate, actual results could vary materially from those anticipated. The Company undertakes no obligation to publicly update or revise any forward-looking statements.

Attachments

• Press release
• Financial report

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