Arkema delivered a very solid cash flow generation supported by strong operational discipline, in a challenging environment that weighs on market demand and the Group's results
PARIS--(BUSINESS WIRE)--November 07, 2025--
Regulatory News:
Arkema (PARIS:AKE):
Sales of EUR2.2 billion, down 4.7% compared to last year at constant exchange rates:
-- Volumes down 2.5% reflecting the lower demand observed in the United
States over the summer and the overall weakness in Europe, while Asia, in
particular China, remains more resilient
-- Strong momentum with 20 % YoY sales growth in several specific key
markets at the heart of our innovation strategy, namely batteries, sports,
3D printing, healthcare and new-generation fluorospecialties
-- 3.7% negative price effect, impacted essentially by the acrylic cycle and
the old-generation refrigerant gases, while all other activities have
seen more stable prices
EBITDA down to EUR310 million (EUR407 million in Q3'24) and EBITDA margin at 14.2%:
-- Volumes in Adhesive Solutions and Advanced Materials reflecting weak
demand in Europe and the United States but supported by the Group's
development strategy in higher value-added activities and by growth in
Asia. Slightly negative net pricing with some benefit from lower raw
material costs as they work through the supply chain.
-- Coating Solutions significantly down, impacted by the acrylic cycle and
the sales decline in the US construction market
-- Seasonal decrease in refrigerant gases
-- Unfavorable currency impact of around EUR15 million, mainly linked to the
US dollar
Adjusted net income of EUR78 million representing EUR1.04 per share (EUR2.25 in Q3'24)
Very solid cash generation with a recurring cash flow of EUR207 million, higher than last year, reflecting the strict management of working capital and lower capex than last year
Net debt down by almost EUR200 million in the quarter to EUR3.4 billion (including hybrid bonds). Issuance of a EUR500 million green bond with an 8-year maturity and a 3.5% coupon.
Strengthening of our cost-cutting efforts:
-- Objective to broadly offset fixed costs inflation in 2025 and 2026 with a
large number of initiatives ramping up across all functions and business
lines
-- Further reduction in capex to around EUR600 million in 2026, representing
a decrease of approximately EUR50 million compared to 2025 and EUR150
million compared to 2024
2025 guidance: taking into account the currently challenging macroeconomic context and the softer than expected demand in the United States, the Group aims at delivering an EBITDA of between EUR1.25 billion and EUR1.3 billion and a recurring cash flow of approximately EUR300 million in 2025.
Chairman and CEO Thierry Le Hénaff said:
"I would like to warmly thank the Arkema teams, whose commitment and professionalism allow us to successfully operate on two levels. On the one hand, we tightly manage costs, capex and working capital to optimize 2025 and be well prepared for 2026. And at the same time, we are following our growth strategy, by strengthening our customer intimacy, delivering our innovation and leveraging our technological platforms in our 5 key high-growth markets. In this respect, I am pleased to announce the launch of a One Arkema platform dedicated to data centers where we have significant growth prospects, and which will reinforce the existing offering in the attractive advanced electronics market.
We are fully convinced that we have all the necessary assets, notably thanks to our recent investments, to benefit from better times of the world economy and capture the numerous opportunities driven by megatrends, which will continue to drive the growth. In the short term, all the teams are fully mobilized on a daily basis to manage the current economic and geopolitical context."
KEY FIGURES
in millions of euros Q3'25 Q3'24 Change
----------------------------------------------- ------- ------- --------
Sales 2,187 2,394 -8.6%
------------------------------------------------ ------- ------- --------
EBITDA (a) 310 407 -23.8%
Specialty Materials 296 377 -21.5%
Intermediates 38 51 -25.5%
Corporate -24 -21
EBITDA margin (a) 14.2% 17.0%
Specialty Materials 14.7% 17.2%
Intermediates 23.6% 26.7%
------------------------------------------------ ------- ------- --------
Recurring operating income (REBIT) (a) 142 246 -42.3%
REBIT margin (a) 6.5% 10.3%
Adjusted net income (a) 78 168 -53.6%
Adjusted net income per share (in EUR) (a) 1.04 2.25 -53.8%
------------------------------------------------ ------- ------- --------
Operating income 94 184 -48.9%
Net income - Group share 35 118 -70.3%
================================================ ======= ======= ========
Recurring cash flow (a) 207 190 +8.9%
Free cash flow (a) 185 175 +5.7%
------------------------------------------------ ------- ------- --------
Net debt and hybrid bonds (a) 3,403 3,111
EUR3,241m as of 31/12/2024
------------------------------------------------ ------- ------- --------
(a) Alternative performance indicator : refer to sections 6 and 8 of the
consolidated financial information at the end of September 2025 available
the end of the document for reconciliation tables and definitions
THIRD-QUARTER 2025 BUSINESS PERFORMANCE
At EUR2,187 million, Group sales were down 4.7% compared with the prior year at constant exchange rates. Volumes were down 2.5% in an environment marked by lower demand in the United States during the summer and overall weak demand in Europe, while Asia, particularly China, remained more resilient. Sales were also supported by Arkema's positive momentum in several key markets at the heart of its growth and innovation strategy, namely batteries, sports, 3D printing, healthcare and new-generation fluorospecialties with low Global Warming Potential, whose sales were up around 20% compared to last year. The negative 3.7% price effect was impacted essentially by the acrylic cycle and by the old-generation refrigerant gases. All other activities showed a limited price decrease of 1.3%, and net pricing was slightly negative with some benefit of lower raw materials costs as they work through the supply chain. The 1.5% positive scope effect reflected essentially the integration of Dow's laminating adhesives. The negative 3.9% currency effect was linked to the devaluation of the US dollar and certain Asian currencies against the euro.
At EUR310 million, Group EBITDA was down on the previous year (EUR407 million in Q3'24), and the EBITDA margin stood at 14.2% (17.0% in Q3'24), including an unfavorable currency effect of around EUR15 million. This performance reflected the significant decline in Coating Solutions, impacted by low cycle conditions in upstream acrylics and lower volumes in the United States, notably in construction, as well as the seasonal decrease in refrigerant gases. Although not immune to the trends in Europe and the United States, Adhesive Solutions and Advanced Materials held up better, supported by the Group's development strategy in higher value-added activities and by volume growth in Asia, notably in the battery and sports sectors. Furthermore, the focus on strict control of operations and the implementation of several cost-saving initiatives enabled the Group to broadly offset fixed cost inflation over the quarter.
Recurring depreciation and amortization totaled EUR168 million, up EUR7 million on the third quarter of 2024, mainly reflecting the integration of Dow's laminating adhesives and the start-up of new production units in 2025, partially offset by a favorable currency effect. Recurring operating income (REBIT) therefore amounted to EUR142 million (EUR246 million in Q3'24) and REBIT margin came in at 6.5% (10.3% in Q3'24).
Operating income amounted to EUR94 million (EUR184 million in Q3'24), including EUR13 million in non-recurring expenses, mainly corresponding to restructuring costs linked to the reorganization of the Jarrie site.
Adjusted net income stood at EUR78 million (EUR168 million in Q3'24), i.e. EUR1.04 per share.
CASH FLOW AND NET DEBT AT 30 SEPTEMBER 2025
The Group delivered a very good level of cash, with recurring cash flow higher than last year at EUR207 million (EUR190 million in Q3'24), including a EUR103 million inflow linked to the continued strict management of working capital. At end-September 2025, working capital represented 17.3% of annualized sales (17.0% at end-June 2025 and 16.4% at end-September 2024). Recurring cash flow also included lower capital expenditure at EUR131 million (EUR167 million in Q3'24). Over the full year of 2025, capital expenditure is expected to come in at around EUR650 million. Besides, the Group plans to reduce capital expenditure to around EUR600 million in 2026, a reduction of around EUR50 million compared to 2025 and EUR150 million compared to 2024.
Free cash flow amounted to EUR185 million (EUR175 million in Q3'24), including a non-recurring cash outflow of EUR22 million, linked notably to restructuring costs and reorganization costs at the Jarrie site in France.
Net debt (including hybrid bonds) was down by almost EUR200 million compared with end-June 2025, and came in at EUR3,403 million at end-September 2025. The net debt and hybrid bonds to last-twelve-months EBITDA ratio stood at 2.6x.
In addition, Arkema successfully placed a new EUR500 million green bond with an eight-year maturity and an annual coupon of 3.50%. Thus, the Group has finalized the refinancing of its 2026 maturities, while strengthening the alignment of its financing strategy with its sustainable development commitments and extending the average maturity of its debt.
THIRD-QUARTER 2025 PERFORMANCE BY SEGMENT
ADHESIVE SOLUTIONS (31% OF TOTAL GROUP SALES)
in millions of euros Q3'25 Q3'24 Change
---------------------------------------------- -------- ------- --------
Sales 675 682 -1.0%
----------------------------------------------- -------- ------- --------
EBITDA (a) 93 107 -13.1%
EBITDA margin (a) 13.8% 15.7%
----------------------------------------------- -------- ------- --------
Recurring operating income (REBIT) (a) 66 86 -23.3%
REBIT margin (a) 9.8% 12.6%
----------------------------------------------- -------- ------- --------
(a) Alternative performance indicator : refer to sections 6 and 8 of the
consolidated financial information at the end of September 2025 available at
the end of the document for reconciliation tables and definitions
Despite a significant negative currency effect of 3.8%, sales in the Adhesive Solutions segment were slightly down by 1% and totaled EUR675 million (EUR682 million in Q3'24). Volumes decreased by 3.1%, reflecting broadly weak demand in industrial adhesives, as in the second quarter, as well as disappointing summer months in the United States, notably in flexible packaging and construction. Prices were down slightly by 1.1% in a context of declining costs for certain raw materials, the benefits of which will start to support net pricing more particularly from the fourth quarter onwards. Sales also included a 7.0% positive scope effect related to the acquisition of Dow's flexible packaging laminating adhesives business.
Segment EBITDA came in at EUR93 million (EUR107 million in Q3'24), affected mainly by lower volumes and by the currency effect. At 13.8%, the EBITDA margin was down compared with last year (15.7% in Q3'24), reflecting the decrease in EBITDA as well as the dilutive effect of Dow's adhesives, in integration phase.
ADVANCED MATERIALS (37% OF TOTAL GROUP SALES)
in millions of euros Q3'25 Q3'24 Change
---------------------------------------------- -------- ------- --------
Sales 810 885 -8.5%
----------------------------------------------- -------- ------- --------
EBITDA (a) 152 189 -19.6%
EBITDA margin (a) 18.8% 21.4%
----------------------------------------------- -------- ------- --------
Recurring operating income (REBIT) (a) 50 95 -47.4%
REBIT margin (a) 6.2% 10.7%
----------------------------------------------- -------- ------- --------
(a) Alternative performance indicator : refer to sections 6 and 8 of the
consolidated financial information at the end of September 2025 available at
the end of the document for reconciliation tables and definitions
At EUR810 million (EUR885 million in Q3'24), sales in the Advanced Materials segment were down 4.5% at constant exchange rates, reflecting mainly a negative 3.9% volume effect, essentially related to Performance Additives, while High Performance Polymers volumes were stable. Performance Additives were impacted by the weak demand in the United States and Europe, particularly in the energy markets, and by the reorganization of the Jarrie site in hydrogen peroxide. High Performance Polymers benefited from strong growth in Asia and from their development and innovation strategy in several key markets such as batteries, sports, 3D printing, healthcare and low Global Warming Potential fluorospecialties. In this field, the Group successfully started up its new 1233zd unit in the United States during the quarter and has just finalized the mechanical completion of its Rilsan$(R)$ Clear unit, downstream of its PA11 plant in Singapore, which is due to start up in the first quarter of 2026. Third-quarter sales also included a negative 4.0% currency effect, while prices were broadly stable at negative 0.6%.
At EUR152 million (EUR189 million in Q3'24), segment EBITDA was mainly impacted by lower volumes in Performance Additives and an unfavorable currency effect. The EBITDA margin for the segment remained nevertheless at the good level of 18.8% (21.4% in Q3'24) with High Performance Polymers maintaining its solid margin level of 20%.
COATING SOLUTIONS (25% OF TOTAL GROUP SALES)
in millions of euros Q3'25 Q3'24 Change
---------------------------------------------- -------- ------- --------
Sales 532 627 -15.2%
----------------------------------------------- -------- ------- --------
EBITDA (a) 51 81 -37.0%
EBITDA margin (a) 9.6% 12.9%
----------------------------------------------- -------- ------- --------
Recurring operating income (REBIT) (a) 20 49 -59.2%
REBIT margin (a) 3.8% 7.8%
----------------------------------------------- -------- ------- --------
(a) Alternative performance indicator : refer to sections 6 and 8 of the
consolidated financial information at the end of September 2025 available at
the end of the document for reconciliation tables and definitions
Sales in the Coating Solutions segment decreased by 15.2% year-on-year to EUR532 million. Down 5.8%, volumes reflected the weak demand, notably in the construction and decorative paints markets, essentially in North America. The negative 5.9% price effect mainly reflected the less favorable market conditions in upstream acrylics. Lastly, the currency effect was a negative 3.5%.
In this context, segment EBITDA decreased significantly to EUR51 million (EUR81 million in Q3'24), reflecting low cycle margins in upstream acrylics as well as the sales decline in the United States, and the EBITDA margin came in at 9.6% (12.9% in Q3'24).
INTERMEDIATES (7% OF TOTAL GROUP SALES)
in millions of euros Q3'25 Q3'24 Change
---------------------------------------------- -------- ------- --------
Sales 161 191 -15.7%
----------------------------------------------- -------- ------- --------
EBITDA (a) 38 51 -25.5%
EBITDA margin (a) 23.6% 26.7%
----------------------------------------------- -------- ------- --------
Recurring operating income (REBIT) (a) 32 39 -17.9%
REBIT margin (a) 19.9% 20.4%
----------------------------------------------- -------- ------- --------
(a) Alternative performance indicator : refer to sections 6 and 8 of the
consolidated financial information at the end of September 2025 available at
the end of the document for reconciliation tables and definitions
Sales in the Intermediates segment, at EUR161 million, were down 15.7% compared to the third quarter of last year. The shift in product mix in refrigerant gases led notably by the end of the production of 410A equipment in the US last year implied a sharp volume rise of 16.7% at segment level offset by a negative 21.6% price effect on a high comparison basis. The scope effect was a negative 5.7%, corresponding to the disposal of non-strategic assets in sebacic acid in China finalized in fourth-quarter 2024. The currency effect was a negative 5.1%.
At EUR38 million, EBITDA included the seasonality of the third quarter, and was down 25.5% on last year, reflecting essentially the less favorable macroeconomic environment as well as the impact of the evolution of the regulations in the US and Europe in refrigerant gases, while acrylics in Asia improved slightly. The EBITDA margin stood at the high level of 23.6% (26.7% in Q3'24).
HIGHLIGHTS
On 28 August 2025, Arkema successfully started up its new Forane(R) 1233zd production unit in Calvert City, USA, continuing its development in low Global Warming Potential (GWP) fluorospecialties to meet the increasing demand for more sustainable solutions in building insulation and thermal management, particularly in cooling for data centers.
On 8 September 2025, Arkema announced the appointment of Laurent Peyronneau as Executive Vice President of the Adhesive Solutions segment (Bostik) and member of the Executive Committee, succeeding Vincent Legros.
On 29 September 2025, Arkema officially showcased its Battery Dry Coating laboratory located at the Cerdato research center, in Normandy, France, together with its customers and partners. This state-of-the-art facility complements Arkema's global network of R&D labs dedicated to the battery industry and reflects Arkema's strategic commitment to pioneering sustainable and high-performance solutions.
On 7 October 2025, Arkema announced a project related to the evolution of the industrial activities of its Pierre-Bénite site in France, providing for the closure of two historic fluorogas production lines. With this project, the Pierre-Bénite site would thus be refocused on the fluoropolymers activity, a range of high value-added specialty materials serving attractive markets such as batteries and semiconductors.
Lastly, Arkema announced on 23 October 2025 that it had completed the modernization and decarbonization project of its Lacq/Mourenx site, which specializes in specialty sulfur derivatives used in particular in agrochemicals, refining, petrochemicals and renewable fuels. This project included the construction of a treatment plant for sulfur-based effluents which operates a more efficient process that helps cut down SO(2) emissions by 40% and GHG emissions by over 10%.
OUTLOOK
In a global context that remains marked by limited visibility, geopolitical tensions, the increase in tariffs and a weak demand environment, the Group continues to prioritize working on the elements under its control, focusing on strictly managing its operating costs, its capital expenditure and its working capital.
Arkema has thus launched a large number of initiatives ramping up across all functions and business lines to optimize and streamline its activities with the objective to broadly offset fixed costs inflation in 2025 and 2026. For this year, the Group confirms its objective of around EUR100 million of savings in fixed and variable costs.
At the same time, Arkema is continuing to implement its strategic roadmap on Specialty Materials, notably with the ramp-up of its major projects, for the most part already funded. Their additional contribution to the Group's EBITDA has been reassessed for the year at around EUR60 million, factoring in particular the growth of PVDF in batteries, Pebax(R) in sports, 1233zd in thermal insulation for buildings and PIAM in advanced electronics, as well as the first contribution from Dow's flexible packaging laminating adhesives business.
Taking into account the currently challenging macroeconomic context and the softer than expected demand in the United States, the Group aims at delivering an EBITDA of between EUR1.25 billion and EUR1.3 billion and a recurring cash flow of approximately EUR300 million in 2025.
Further details concerning the Group's third-quarter 2025 results are provided in the "Third-quarter 2025 results and outlook" presentation and the "Factsheet", both available on Arkema's website at: www.arkema.com/global/en/investor-relations/
FINANCIAL CALENDAR
26 February 2026: Publication of full-year 2025 results
6 May 2026: Publication of first-quarter 2026 results
DISCLAIMER
The information disclosed in this press release may contain forward-looking statements with respect to the financial position, results of operations, business and strategy of Arkema.
In a context of significant geopolitical tensions, where the outlook for the global economy remains uncertain, the retained assumptions and forward-looking statements could ultimately prove inaccurate. Such statements are based on management's current views and assumptions that could ultimately prove inaccurate and are subject to risk factors such as (but not limited to) changes in raw materials prices, currency fluctuations, and the pace at which cost-reduction projects are implemented, escalating geopolitical tensions, and changes in general economic and financial conditions. Arkema does not assume any liability to update such forward-looking statements whether as a result of any new information or any unexpected event or otherwise. Further information on factors which could affect Arkema's financial results is provided in the documents filed with the French Autorité des marchés financiers.
Balance sheet, income statement and cash flow statement data, as well as information by segment included in this document are extracted from the consolidated financial information at 30 September 2025, as reviewed by Arkema's Board of Directors on 6 November 2025. Quarterly financial information is not audited. Information by segment is presented in accordance with Arkema's internal reporting system used by management.
Definitions and concordance tables for the main alternative performance indicators used by the Group are provided in Notes 6 and 8 to the 30 September 2025 consolidated financial information at the end of this document.
For the purpose of tracking changes in its results, and particularly its sales figures, the Group analyzes the following effects (unaudited analyses):
-- scope effect: the impact of changes in the Group's scope of consolidation,
which arise from acquisitions and divestments of entire businesses or as
a result of the first-time consolidation or deconsolidation of entities.
Increases or reductions in capacity are not included in the scope effect;
-- currency effect: the mechanical impact of consolidating accounts
denominated in currencies other than the euro at different exchange rates
from one period to another. The currency effect is calculated by applying
the foreign exchange rates of the prior period to the figures for the
period under review;
-- price effect: the impact of changes in average selling prices is
estimated by comparing the weighted average net unit selling price of a
range of related products in the period under review with their weighted
average net unit selling price in the prior period, multiplied, in both
cases, by the volumes sold in the period under review; and
-- volume effect: the impact of changes in volumes is estimated by comparing
the quantities delivered in the period under review with the quantities
delivered in the prior period, multiplied, in both cases, by the weighted
average net unit selling price in the prior period.
Building on its unique set of expertise in materials science, Arkema offers a portfolio of first-class technologies to address ever-growing demand for new and more sustainable materials. With the ambition to become a pure player in Specialty Materials in 2024, the Group is structured into three complementary, resilient and highly innovative segments dedicated to Specialty Materials - Adhesive Solutions, Advanced Materials, and Coating Solutions - accounting for some 92% of Group sales in 2024, and a well-positioned and competitive Intermediates segment. Arkema offers cutting-edge technological solutions to meet the challenges of, among other things, new energies, access to water, recycling, urbanization and mobility, and fosters a permanent dialogue with all its stakeholders. The Group reported sales of around EUR9.5 billion in 2024 and operates in some 55 countries with 21,150 employees worldwide.
ARKEMA financial statements
Consolidated financial information - At the end of September 2025
Consolidated financial statements as of December 2024 have been audited.
1. CONSOLIDATED INCOME STATEMENT
3(rd) quarter 2025 3(rd) quarter 2024
--------------------- ---------------------
(In millions of euros)
Sales 2,187 2,394
Operating expenses * (1,781) (1,894)
Research and development
expenses * (68) (70)
Selling and administrative
expenses (231) (222)
Other income and expenses (13) (24)
-------------------------------- --------------------- ---------------------
Operating income 94 184
-------------------------------- --------------------- ---------------------
Equity in income of affiliates (1) (2)
Financial result (33) (20)
Income taxes (25) (42)
-------------------------------- --------------------- ---------------------
Net income 35 120
-------------------------------- --------------------- ---------------------
Attributable to non-controlling
interests 0 2
-------------------------------- --------------------- ---------------------
Net income - Group share 35 118
-------------------------------- --------------------- ---------------------
Earnings per share (amount in
euros) 0.47 1.43
Diluted earnings per share
(amount in euros) 0.46 1.42
-------------------------------- --------------------- ---------------------
End of September 2025 End of September 2024
--------------------- ---------------------
(In millions of euros)
Sales 6,963 7,271
Operating expenses * (5,661) (5,732)
Research and development
expenses * (210) (207)
Selling and administrative
expenses (697) (695)
Other income and expenses (82) (101)
-------------------------------- --------------------- ---------------------
Operating income 313 536
-------------------------------- --------------------- ---------------------
Equity in income of affiliates (1) (4)
Financial result (91) (53)
Income taxes (89) (130)
-------------------------------- --------------------- ---------------------
Net income 132 349
-------------------------------- --------------------- ---------------------
Attributable to non-controlling
interests 1 7
-------------------------------- --------------------- ---------------------
Net income - Group share 131 342
-------------------------------- --------------------- ---------------------
Earnings per share (amount in
euros) 1.42 4.36
Diluted earnings per share
(amount in euros) 1.41 4.34
-------------------------------- --------------------- ---------------------
* Includes a correction of Q3'24
data (transfer between
"Operating expenses" and
"Research and development
expenses")
2. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
3(rd) quarter 2025 3(rd) quarter 2024
--------------------- ---------------------
(In millions of euros)
Net income 35 120
-------------------------------- --------------------- ---------------------
Hedging adjustments (11) 13
Other items 0 --
Deferred taxes on hedging
adjustments and other items 0 (1)
Change in translation
adjustments (36) (155)
-------------------------------- --------------------- ---------------------
Other recyclable comprehensive
income (47) (143)
-------------------------------- --------------------- ---------------------
Impact of remeasuring
unconsolidated investments (14) 0
Actuarial gains and losses 6 (14)
Deferred taxes on actuarial
gains and losses (1) 3
-------------------------------- --------------------- ---------------------
Other non-recyclable
comprehensive income (9) (11)
-------------------------------- --------------------- ---------------------
Total other comprehensive income (56) (154)
-------------------------------- --------------------- ---------------------
Total comprehensive income (21) (34)
-------------------------------- --------------------- ---------------------
Attributable to non-controlling
interest (13) 2
-------------------------------- --------------------- ---------------------
Total comprehensive income -
Group share (8) (36)
-------------------------------- --------------------- ---------------------
End of September 2025 End of September 2024
--------------------- ---------------------
(In millions of euros)
Net income 132 349
-------------------------------- --------------------- ---------------------
Hedging adjustments 10 10
Other items 0 0
Deferred taxes on hedging
adjustments and other items 0 (1)
Change in translation
adjustments (558) (84)
-------------------------------- --------------------- ---------------------
Other recyclable comprehensive
income (548) (75)
-------------------------------- --------------------- ---------------------
Impact of remeasuring
unconsolidated investments (15) (1)
Actuarial gains and losses 17 4
Deferred taxes on actuarial
gains and losses (2) (1)
-------------------------------- --------------------- ---------------------
Other non-recyclable
comprehensive income 0 2
-------------------------------- --------------------- ---------------------
Total other comprehensive income (548) (73)
-------------------------------- --------------------- ---------------------
Total comprehensive income (416) 276
-------------------------------- --------------------- ---------------------
Attributable to non-controlling
interest (30) (4)
-------------------------------- --------------------- ---------------------
Total comprehensive income -
Group share (386) 280
-------------------------------- --------------------- ---------------------
3. CONSOLIDATED CASH FLOW STATEMENT
End of September 2025 End of September 2024
--------------------- ---------------------
(In millions of euros)
Net income 132 349
Depreciation, amortization and
impairment of assets 607 582
Other provisions and deferred
taxes (49) 16
(Gains)/Losses on sales of
long-term assets (6) 3
Undistributed affiliate equity
earnings 1 4
Change in working capital (122) (262)
Other changes 10 22
Cash flow from operating
activities 573 714
-------------------------------- --------------------- ---------------------
Intangible assets and property,
plant, and equipment additions (371) (436)
Change in fixed asset payables (116) (75)
Acquisitions of operations, net
of cash acquired 0 (29)
Increase in long-term loans (38) (63)
Total expenditures (525) (603)
Proceeds from sale of intangible
assets and property, plant and
equipment 9 5
Change in fixed asset
receivables 8 --
Proceeds from sale of
operations, net of cash
transferred -- --
Repayment of long-term loans 51 52
Total divestitures 68 57
Cash flow from investing
activities (457) (546)
-------------------------------- --------------------- ---------------------
Issuance/(Repayment) of shares
and paid-in surplus -- --
Acquisition/sale of treasury
shares (32) (24)
Issuance of hybrid bonds 399 399
Redemption of hybrid bonds -- (400)
Dividends paid to parent company
shareholders (272) (261)
Interest paid to bearers of
subordinated perpetual notes (24) (16)
Dividends paid to
non-controlling interests and
buyout of minority interests (4) (2)
Increase in long-term debt 504 494
Decrease in long-term debt (103) (764)
Increase / (Decrease) in
short-term debt (722) 327
Cash flow from financing
activities (254) (247)
-------------------------------- --------------------- ---------------------
Net increase/(decrease) in cash
and cash equivalents (138) (79)
Effect of exchange rates and
changes in scope 78 29
Cash and cash equivalents at
beginning of period 2,013 2,045
Cash and cash equivalents at end
of the period 1,953 1,995
-------------------------------- --------------------- ---------------------
4. CONSOLIDATED BALANCE SHEET
30(th) September 2025 31(st) December 2024
--------------------- --------------------
(In millions of euros)
ASSETS
Goodwill 2,878 3,071
Other intangible assets, net 2,151 2,373
Property, plant and equipment,
net 3,863 4,227
Investments in equity affiliates 8 11
Other investments 33 50
Deferred tax assets 143 155
Other non-current assets 292 327
TOTAL NON-CURRENT ASSETS 9,368 10,214
--------------------------------- --------------------- --------------------
Inventories 1,309 1,348
Accounts receivable 1,304 1,312
Other receivables and prepaid
expenses 232 201
Income taxes recoverable 111 101
Current financial derivative
assets 21 20
Cash and cash equivalents 1,953 2,013
Assets held for sale -- --
TOTAL CURRENT ASSETS 4,930 4,995
TOTAL ASSETS 14,298 15,209
LIABILITIES AND SHAREHOLDERS'
EQUITY
Share capital 761 761
Paid-in surplus and retained
earnings 6,693 6,439
Treasury shares (54) (22)
Translation adjustments (179) 348
SHAREHOLDERS' EQUITY - GROUP
SHARE 7,221 7,526
--------------------------------- --------------------- --------------------
Non-controlling interests 201 235
--------------------------------- --------------------- --------------------
TOTAL SHAREHOLDERS' EQUITY 7,422 7,761
--------------------------------- --------------------- --------------------
Deferred tax liabilities 427 435
Provisions for pensions and other
employee benefits 357 391
Other provisions and non-current
liabilities 373 456
Non-current debt 4,114 3,680
TOTAL NON-CURRENT LIABILITIES 5,271 4,962
--------------------------------- --------------------- --------------------
Accounts payable 886 1,074
Other creditors and accrued
liabilities 480 424
Income tax payables 78 82
Current financial derivative
liabilities 19 32
Current debt 142 874
Liabilities associated with
assets held for sale -- --
TOTAL CURRENT LIABILITIES 1,605 2,486
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 14,298 15,209
5. CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Shareholders'
equity - Non-controlling Shareholders'
Shares issued Treasury shares Group share interests equity
------------------ ----------------- ------------- --------------- -------------
(In millions of Paid-in Hybrid Retained Translation
euros) Number Amount surplus bonds earnings adjustments Number Amount
----------------- ---------- ------ ------- ------ -------- ----------- --------- ------ ------------- --------------- -------------
At 1(st) January
2025 76,060,831 761 1,117 700 4,622 348 (257,160) (22) 7,526 235 7,761
----------------- ---------- ------ ------- ------ -------- ----------- --------- ------ ------------- --------------- -------------
Cash dividend -- -- -- -- (296) -- -- -- (296) (8) (304)
Issuance of share
capital -- -- -- -- -- -- -- -- -- -- --
Capital reduction
by cancellation
of treasury
shares -- -- -- -- -- -- -- -- -- -- --
Acquisition/sale
of treasury
shares -- -- -- -- -- -- (462,314) (32) (32) -- (32)
Grants of
treasury shares
to employees -- -- -- -- 0 -- 109 0 0 -- 0
Share-based
payments -- -- -- -- 10 -- -- -- 10 -- 10
Issuance of
hybrid bonds -- -- -- 400 (1) -- -- -- 399 -- 399
Redemption of
hybrid bonds -- -- -- -- -- -- -- -- -- -- --
Other -- -- -- -- 0 -- -- -- 0 4 4
----------------- ---------- ------ ------- ------ -------- ----------- --------- ------ ------------- --------------- -------------
Transactions with
shareholders -- -- -- 400 (287) -- (462,205) (32) 81 (4) 77
----------------- ---------- ------ ------- ------ -------- ----------- --------- ------ ------------- --------------- -------------
Net income -- -- -- -- 131 -- -- -- 131 1 132
Total income and
expense
recognized
directly through
equity -- -- -- -- 10 (527) -- -- (517) (31) (548)
----------------- ---------- ------ ------- ------ -------- ----------- --------- ------ ------------- --------------- -------------
Total
comprehensive
income -- -- -- -- 141 (527) -- -- (386) (30) (416)
----------------- ---------- ------ ------- ------ -------- ----------- --------- ------ ------------- --------------- -------------
At 30(th)
September 2025 76,060,831 761 1,117 1,100 4,476 (179) (719,365) (54) 7,221 201 7,422
----------------- ---------- ------ ------- ------ -------- ----------- --------- ------ ------------- --------------- -------------
6. ALTERNATIVE PERFORMANCE INDICATORS
The Group uses performance indicators that are not directly defined in the
consolidated financial statements under IFRS and which are used as monitoring
and analysis tools. The purpose of these indicators is to provide additional
information to illustrate the Group's financial performance and its various
activities, notably by eliminating exceptional or non-recurring items in
certain cases, to ensure period-on-period comparability. In some cases, the
indicators may also provide a consistent basis for comparison with the
financial performance of our peers. A reconciliation with the aggregates of
the IFRS consolidated financial statements is presented in this note.
RECURRING OPERATING INCOME (REBIT) AND EBITDA
End of End of
(In millions of September September 3(rd) quarter 3(rd) quarter
euros) 2025 2024 2025 2024
------------- ------------- -------------- --------------
OPERATING INCOME 313 536 94 184
- Depreciation
and
amortization
related to the
revaluation of
property, plant
and equipment
and intangible
assets as part
of the
allocation of
the purchase
price of
businesses (105) (113) (35) (38)
- Other income
and expenses (82) (101) (13) (24)
RECURRING
OPERATING
INCOME (REBIT) 500 750 142 246
---------------- ------------- ------------- -------------- --------------
- Recurring
depreciation
and
amortization of
property, plant
and equipment
and intangible
assets (503) (458) (168) (161)
EBITDA 1,003 1,208 310 407
---------------- ------------- ------------- -------------- --------------
Details of
depreciation
and
amortization of
property, plant
and equipment
and intangible
assets:
----------------
End of End of
(In millions of September September 3(rd) quarter 3(rd) quarter
euros) 2025 2024 2025 2024
------------- ------------- -------------- --------------
Depreciation and
amortization of
property, plant
and equipment
and intangible
assets (607) (582) (203) (200)
---------------- ------------- ------------- -------------- --------------
Of which:
Recurring
depreciation
and
amortization of
property, plant
and equipment
and intangible
assets (503) (458) (168) (161)
Of which:
Depreciation
and
amortization
related to the
revaluation of
property, plant
and equipment
and intangible
assets as part
of the
allocation of
the purchase
price of
businesses (105) (113) (35) (38)
Of which:
Impairment
included in
other income
and expenses 1 (11) 0 (1)
---------------- ------------- ------------- -------------- --------------
ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE
End of End of
(In millions of September September 3(rd) quarter 3(rd) quarter
euros) 2025 2024 2025 2024
------------- ------------- -------------- --------------
NET INCOME -
GROUP SHARE 131 342 35 118
- Depreciation
and
amortization
related to the
revaluation of
property, plant
and equipment
and intangible
assets as part
of the
allocation of
the purchase
price of
businesses (105) (113) (35) (38)
- Other income
and expenses (82) (101) (13) (24)
- Other income
and expenses
attributable to
non-controlling
interests -- -- -- --
- Taxes on
depreciation
and
amortization
related to the
revaluation of
property, plant
and equipment
and intangible
assets as part
of the
allocation of
the purchase
price of
businesses 22 25 6 9
- Taxes on other
income and
expenses 7 17 1 5
- One-time tax
effects (6) (6) (2) (2)
ADJUSTED NET
INCOME 295 520 78 168
---------------- ------------- ------------- -------------- --------------
Weighted average
number of
ordinary shares
* 75,521,661 74,699,719
Weighted average
number of
potential
ordinary
shares 75,980,903 75,114,108
ADJUSTED
EARNINGS PER
SHARE (in
euros) 3.91 6.96 1.04 2.25
---------------- ------------- ------------- -------------- --------------
DILUTED ADJUSTED
EARNINGS PER
SHARE (in
euros) 3.88 6.92 1.02 2.23
---------------- ------------- ------------- -------------- --------------
* End of
September 2024
data adjusted
to include a
missing
transaction for
the quarter
RECURRING CAPITAL EXPENDITURE
End of End of
(In millions of September September 3(rd) quarter 3(rd) quarter
euros) 2025 2024 2025 2024
------------- ------------- -------------- --------------
INTANGIBLE
ASSETS AND
PROPERTY,
PLANT, AND
EQUIPMENT
ADDITIONS 371 436 131 167
- Exceptional
capital
expenditure -- -- -- --
- Investments
relating to
portfolio
management
operations -- -- -- --
- Capital
expenditure with
no impact on net
debt -- -- -- --
RECURRING
CAPITAL
EXPENDITURE 371 436 131 167
---------------- ------------- ------------- -------------- --------------
CASH FLOWS
End of End of
(In millions of September September 3(rd) quarter 3(rd) quarter
euros) 2025 2024 2025 2024
------------- ------------- -------------- --------------
+ Cash flow from
operating
activities 573 714 298 334
+ Cash flow from
investing
activities (457) (546) (111) (160)
---------------- ------------- ------------- -------------- --------------
NET CASH FLOW 116 168 187 174
---------------- ------------- ------------- -------------- --------------
- Net cash flow
from portfolio
management
operations (5) (42) 2 (1)
---------------- ------------- ------------- -------------- --------------
FREE CASH FLOW 121 210 185 175
---------------- ------------- ------------- -------------- --------------
- Exceptional
capital
expenditure -- -- -- --
- Non-recurring
cash flow (59) (52) (22) (15)
---------------- ------------- ------------- -------------- --------------
RECURRING CASH
FLOW 180 262 207 190
---------------- ------------- ------------- -------------- --------------
- Recurring
capital
expenditure (371) (436) (131) (167)
---------------- ------------- ------------- -------------- --------------
OPERATING CASH
FLOW 551 698 338 357
---------------- ------------- ------------- -------------- --------------
NET DEBT
(In millions of euros) End of September 2025 End of December 2024
--------------------- --------------------
Non-current debt 4,114 3,680
+ Current debt 142 874
- Cash and cash equivalents 1,953 2,013
--------------------------------- --------------------- --------------------
NET DEBT 2,303 2,541
--------------------------------- --------------------- --------------------
+ Hybrid bonds 1,100 700
--------------------------------- --------------------- --------------------
NET DEBT AND HYBRID BONDS 3,403 3,241
--------------------------------- --------------------- --------------------
Last twelve months EBITDA 1,327 1,532
--------------------------------- --------------------- --------------------
NET DEBT AND HYBRID BONDS TO
EBITDA RATIO 2.6 2.1
--------------------------------- --------------------- --------------------
WORKING CAPITAL
(In millions of euros) End of September 2025 End of December 2024
--------------------- --------------------
Inventories 1,309 1,348
+ Accounts receivable 1,304 1,312
+ Other receivables including
income taxes recoverable 343 302
+ Current financial derivative
assets 21 20
- Accounts payable (operating
suppliers) 886 1,074
- Other liabilities including
income taxes 558 506
- Current financial derivative
liabilities 19 32
--------------------------------- --------------------- --------------------
WORKING CAPITAL 1,514 1,370
--------------------------------- --------------------- --------------------
CAPITAL EMPLOYED
(In millions of euros) End of September 2025 End of December 2024
--------------------- --------------------
Goodwill, net 2,878 3,071
+ Intangible assets (excluding
goodwill), and property, plant
and equipment, net 6,014 6,600
+ Investments in equity
affiliates 8 11
+ Other investments and other
non-current assets 325 377
+ Working capital 1,514 1,370
--------------------------------- --------------------- --------------------
CAPITAL EMPLOYED 10,739 11,429
--------------------------------- --------------------- --------------------
7. INFORMATION BY SEGMENT
3(rd) quarter 2025
----------------------------------------------------------------
(In millions of Adhesive Advanced Coating
euros) Solutions Materials Solutions Intermediates Corporate Total
Sales 675 810 532 161 9 2,187
------------------ --------- --------- --------- ------------- --------- -----
EBITDA (a) 93 152 51 38 (24) 310
------------------ --------- --------- --------- ------------- --------- -----
Recurring
depreciation and
amortization of
property, plant
and equipment and
intangible assets
(a) (27) (102) (31) (6) (2) (168)
------------------ --------- --------- --------- ------------- --------- -----
Recurring
operating income
(REBIT) (a) 66 50 20 32 (26) 142
------------------ --------- --------- --------- ------------- --------- -----
Depreciation and
amortization
related to the
revaluation of
property, plant
and equipment and
intangible assets
as part of the
allocation of the
purchase price of
businesses (24) (9) (2) -- -- (35)
Other income and
expenses 0 (11) -- 0 (2) (13)
Operating income 42 30 18 32 (28) 94
------------------ --------- --------- --------- ------------- --------- -----
Equity in income
of affiliates -- 0 -- -- (1) (1)
Intangible assets
and property,
plant, and
equipment
additions 20 69 34 2 6 131
Of which:
recurring capital
expenditure (a) 20 69 34 2 6 131
3(rd) quarter 2024
----------------------------------------------------------------
(In millions of Adhesive Advanced Coating
euros) Solutions Materials Solutions Intermediates Corporate Total
Sales 682 885 627 191 9 2,394
------------------ --------- --------- --------- ------------- --------- -----
EBITDA (a) 107 189 81 51 (21) 407
------------------ --------- --------- --------- ------------- --------- -----
Recurring
depreciation and
amortization of
property, plant
and equipment and
intangible assets
(a) (21) (94) (32) (12) (2) (161)
------------------ --------- --------- --------- ------------- --------- -----
Recurring
operating income
(REBIT) (a) 86 95 49 39 (23) 246
------------------ --------- --------- --------- ------------- --------- -----
Depreciation and
amortization
related to the
revaluation of
property, plant
and equipment and
intangible assets
as part of the
allocation of the
purchase price of
businesses (28) (8) (2) -- -- (38)
Other income and
expenses (9) (13) 0 0 (2) (24)
Operating income 49 74 47 39 (25) 184
------------------ --------- --------- --------- ------------- --------- -----
Equity in income
of affiliates -- (2) -- -- -- (2)
Intangible assets
and property,
plant, and
equipment
additions 21 100 28 3 15 167
Of which:
recurring capital
expenditure (a) 21 100 28 3 15 167
(a) Alternative performance indicator: refer to sections 6 and 8 for reconciliation
tables and definitions.
7. INFORMATION BY SEGMENT
End of September 2025
----------------------------------------------------------------
(In millions of Adhesive Advanced Coating
euros) Solutions Materials Solutions Intermediates Corporate Total
Sales 2,106 2,621 1,704 506 26 6,963
------------------ --------- --------- --------- ------------- --------- -----
EBITDA (a) 295 503 162 116 (73) 1,003
------------------ --------- --------- --------- ------------- --------- -----
Recurring
depreciation and
amortization of
property, plant
and equipment and
intangible assets
(a) (78) (299) (94) (21) (11) (503)
------------------ --------- --------- --------- ------------- --------- -----
Recurring
operating income
(REBIT) (a) 217 204 68 95 (84) 500
------------------ --------- --------- --------- ------------- --------- -----
Depreciation and
amortization
related to the
revaluation of
property, plant
and equipment and
intangible assets
as part of the
allocation of the
purchase price of
businesses (73) (27) (5) -- -- (105)
Other income and
expenses (19) (54) -- 3 (12) (82)
Operating income 125 123 63 98 (96) 313
------------------ --------- --------- --------- ------------- --------- -----
Equity in income
of affiliates -- 0 -- -- (1) (1)
Intangible assets
and property,
plant, and
equipment
additions 46 190 110 9 16 371
Of which:
recurring capital
expenditure (a) 46 190 110 9 16 371
End of September 2024
----------------------------------------------------------------
(In millions of Adhesive Advanced Coating
euros) Solutions Materials Solutions Intermediates Corporate Total
Sales 2,068 2,681 1,890 603 29 7,271
------------------ --------- --------- --------- ------------- --------- -----
EBITDA (a) 321 541 247 174 (75) 1,208
------------------ --------- --------- --------- ------------- --------- -----
Recurring
depreciation and
amortization of
property, plant
and equipment and
intangible assets
(a) (65) (263) (93) (32) (5) (458)
------------------ --------- --------- --------- ------------- --------- -----
Recurring
operating income
(REBIT) (a) 256 278 154 142 (80) 750
------------------ --------- --------- --------- ------------- --------- -----
Depreciation and
amortization
related to the
revaluation of
property, plant
and equipment and
intangible assets
as part of the
allocation of the
purchase price of
businesses (81) (27) (5) -- -- (113)
Other income and
expenses (25) (64) 0 (1) (11) (101)
Operating income 150 187 149 141 (91) 536
------------------ --------- --------- --------- ------------- --------- -----
Equity in income
of affiliates -- (4) -- -- -- (4)
Intangible assets
and property,
plant, and
equipment
additions 48 276 71 14 27 436
Of which:
recurring capital
expenditure (a) 48 276 71 14 27 436
(a) Alternative performance indicator: refer to sections 6 and 8 for reconciliation
tables and definitions.
8. DEFINITIONS OF ALTERNATIVE PERFORMANCE INDICATORS
-- Recurring depreciation and amortization of property, plant and equipment
and intangible assets
This alternative performance indicator corresponds to depreciation, amortization and impairment of property, plant and equipment and intangible assets before taking into account:
1. depreciation and amortization related to the revaluation of property,
plant and equipment and intangible assets as part of the allocation of
the purchase price of businesses, and
2. impairment included in other income and expenses.
The indicator facilitates period-to-period comparisons by eliminating non-recurring items.
-- Working capital
This alternative performance indicator corresponds to the net amount of current assets and liabilities relating to operating activities, capital expenditure and financing activities. It reflects the Group's short-term financing requirements resulting from cash flow timing differences between outflows and inflows relating to operating activities.
-- Capital employed
This alternative performance indicator corresponds to the sum of the following:
1. the net book value of goodwill,
2. the net book value of intangible assets (excluding goodwill) and property,
plant and equipment,
3. the amount of investments in equity affiliates,
4. the amount of other investments and other non-current assets, and
5. working capital.
Capital employed is used to analyze the amount of capital invested by the Group to conduct its business.
-- Adjusted capital employed
This alternative performance indicator corresponds to capital employed adjusted for divestments and acquisitions, to ensure consistency between the numerator and denominator items used to calculate ROCE.
In the case of an announced divestment of a business announced and not finalized by 31 December, the operating income of this business remains consolidated in the income statement, and is therefore included in the calculation of REBIT, whereas items relating to capital employed are classified as assets/liabilities held for sale and are therefore excluded from the calculation of capital employed. To ensure consistency between the numerator and denominator items used to calculate ROCE, capital employed at 31 December is increased by the capital employed relating to the business being sold.
When an acquisition is finalized during the year, operating results are only consolidated in the income statement from the date of acquisition, and not for the full year, while capital employed is recognized in full at 31 December. When the acquisition has not generated a material contribution to the year's earnings, in order to ensure consistency between the numerator and denominator items used to calculate ROCE, capital employed at 31 December is reduced by the capital employed relating to the acquired business, unless they are considered as not material.
-- Net debt
This alternative performance indicator corresponds to the sum of current and non-current debt less cash and cash equivalents.
-- Net debt and hybrid bonds
This alternative performance indicator corresponds to the amount of net debt and hybrid bonds.
-- Net debt and hybrid bonds to EBITDA ratio
This alternative performance indicator corresponds to the ratio of net debt and hybrid bonds to EBITDA. The indicator measures the level of debt in relation to the Group's operating performance, and provides a consistent basis for comparison with our peers.
-- Earnings Before Interest Taxes Depreciation & Amortization (EBITDA)
The IFRS item most similar to this alternative performance indicator is operating income.
The indicator corresponds to operating income before taking into account:
1. recurring depreciation and amortization of property, plant and equipment
and intangible assets,
2. other income and expenses, and
3. depreciation and amortization related to the revaluation of property,
plant and equipment and intangible assets as part of the allocation of
the purchase price of businesses.
This indicator is used to assess the Group's operating profitability and its ability to generate operating cash flow before changes in working capital, capital expenditure and cash flow from financing and tax expenses. It also facilitates period-to-period comparisons by eliminating non-recurring items, and provides a consistent basis for comparison with our peers.
-- Recurring cash flow
This alternative performance indicator corresponds to free cash flow excluding non-recurring or exceptional items, i.e., non-recurring cash flow and exceptional capital expenditure. The indicator enables period-to-period comparisons by eliminating the impact of exceptional or non-recurring items and portfolio management, and provides a consistent basis for comparison with our peers. It is used to assess the Group's ability to generate cash to finance its shareholder returns, non-recurring or exceptional items and acquisitions.
-- Free cash flow
This alternative performance indicator corresponds to net cash flow before taking into account net cash flow from portfolio management operations. It enables period-to-period comparisons by eliminating portfolio management, and provides a consistent basis for comparison with our peers.
-- Net cash flow
This alternative performance indicator corresponds to the sum of two IFRS items, cash flow from operations and cash flow from net investments. It provides an estimate of Group cash flow before changes in cash flow from financing activities.
-- Net cash flow from portfolio management operations
This alternative performance indicator corresponds to cash flows from acquisitions and divestments as described in notes 3.2.2 "Acquisitions during the year" and 3.3 "Business divestments".
-- Non-recurring cash flow
This alternative performance indicator corresponds to cash flow from other income and expenses, as described in note 6.1.5 "Other income and expenses".
-- Operating cash flow
This alternative performance indicator corresponds to free cash flow before taking into account intangible assets and property, plant and equipment additions, adjusted for non-recurring cash flows. It is used to assess the Group's ability to generate cash to finance its intangible assets and property, plant and equipment additions, shareholder returns and acquisitions. It corresponds to and replaces the "Operating cash flow" indicator defined at the Capital Markets Day on 27 September 2023.
-- Recurring capital expenditure
The IFRS item most similar to this alternative performance indicator is intangible assets and property, plant and equipment additions. Recurring capital expenditure includes all intangible assets and property, plant and equipment additions, adjusted for exceptional capital expenditure, investments linked to portfolio management operations and investments with no impact on net debt (financed by third parties). This indicator enables period-to-period comparisons by eliminating exceptional items, and provides a consistent basis for comparison with our peers.
-- Exceptional capital expenditure
Alternative performance indicator corresponding to a very limited number of capital expenditure items for major development projects that the Group presents separately in its financial communication due to their size and nature.
-- REBIT margin
This alternative performance indicator corresponds to the recurring operating income (REBIT) to sales ratio. It facilitates period-to-period comparisons by eliminating non-recurring items, and provides a consistent basis for comparison with our peers.
-- EBITDA margin
This alternative performance indicator corresponds to the EBITDA to sales ratio. It facilitates period-to-period comparisons by eliminating non-recurring items, and provides a consistent basis for comparison with our peers. It is also one of the financial performance criteria linked to performance share plans.
-- Recurring operating income (REBIT)
The IFRS item most similar to this alternative performance indicator is operating income. The indicator corresponds to operating income before taking into account:
1. depreciation and amortization related to the revaluation of property,
plant and equipment and intangible assets as part of the allocation of
the purchase price of businesses, and
2. other income and expenses.
The indicator assesses the Group's operating profitability before tax and excluding non-recurring items, whatever the financing structure, since it does not take into account financial result. It facilitates period-to-period comparisons by eliminating non-recurring items, and provides a consistent basis for comparison with our peers.
-- Adjusted net income
The IFRS item most similar to this alternative performance indicator is net income -- Group share. This indicator corresponds to net income -- Group share before non-recurring items. Exceptional or non-recurring items correspond to:
1. other income and expenses, net of applicable taxes,
2. depreciation and amortization related to the revaluation of property,
plant and equipment and intangible assets as part of the allocation of
the purchase price of businesses, net of applicable taxes, and
3. one-time tax effects unrelated to other income and expenses and relating
to events that are exceptional in terms of frequency and amount, such as
the recognition or impairment of deferred tax assets, or the impact of a
change in tax rates on deferred taxes.
This indicator enables us to assess the Group's profitability by taking account of not only operating items, but also the Group's financing structure and income taxes. It facilitates period-to-period comparisons by eliminating non-recurring items, and provides a consistent basis for comparison with our peers.
-- Adjusted earnings per share
This alternative performance indicator is calculated by dividing adjusted net income for the period by the weighted average number of ordinary shares outstanding during the period.
-- Diluted adjusted earnings per share
This alternative performance indicator corresponds to earnings per share adjusted for the dilutive effect of all potential ordinary shares. It is calculated by dividing adjusted net income for the period by the weighted average number of potential ordinary shares outstanding during the period.
-- Return on capital employed (ROCE)
This alternative performance indicator corresponds to the ratio of recurring operating income (REBIT) for the period to capital employed at the end of the period. It is used to assess the profitability of capital expenditure over time.
-- Return on adjusted capital employed
This alternative performance indicator corresponds to the ratio of recurring operating income (REBIT) for the period to the adjusted capital employed at the end of the period. It is used to assess the profitability of capital expenditure over time, by adjusting items relating to capital employed acquired during the period or in the course of disposal to bring them into line with the items used in REBIT.
-- EBITDA to cash conversion rate
This alternative performance indicator corresponds to the ratio of recurring cash flow to EBITDA. The indicator is used to assess the Group's ability to generate cash to finance, in particular, returns to shareholders, exceptional capital expenditure and acquisitions.
-- EBITDA to operating cash conversion rate
This alternative performance indicator corresponds to the ratio of operating cash flow to EBITDA. The indicator provides a consistent basis for comparison between periods and with our peers, whatever the growth strategy adopted, whether external growth through acquisitions or internal growth through capital expenditure. It is also one of the financial performance criteria linked to performance share plans. It corresponds to and replaces the "Operating cash conversion rate" indicator defined at the Capital Markets Day on 27 September 2023.
View source version on businesswire.com: https://www.businesswire.com/news/home/20251106736500/en/
CONTACT: Investor relations contacts
Béatrice Zilm +33 (0)1 49 00 75 58 beatrice.zilm@arkema.com
James Poutier +33 (0)1 49 00 73 12 james.poutier@arkema.com
Alexis Noël +33 (0)1 49 00 74 37 alexis.noel@arkema.com
Colombe Boiteux +33 (0)1 49 00 72 07 colombe.boiteux@arkema.com
Media contacts
Gilles Galinier +33 (0)1 49 00 70 07 gilles.galinier@arkema.com
Anne Plaisance +33 (0)6 81 87 48 77 anne.plaisance@arkema.com
(END) Dow Jones Newswires
November 07, 2025 01:00 ET (06:00 GMT)