Slides
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Third-quarter 2025 results and outlook 07/11/2025
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Q3’25 key takeaways 07/11/2025Third-quarter 2025 results and outlook 2 Challenging macroeconomic environment including a lower than expected demand in the US over the summer Very solid cash flow generation supported by strong operational and capital discipline Group EBITDA down reflecting the weakness in demand, with Adhesive Solutions and Advanced Materials holding up better Strengthening of our cost-cutting efforts • Objective to broadly offset fixed costs inflation in 2025 and 2026 • Further reduction in capex by €50m in 2026 to around €600m Maintaining our innovation drive with next-generation batteries laboratory and One Arkema platform dedicated to data centers Net debt down by almost €200m in the quarter to €3.4bn Sales €2,187m -4.7% vs Q3’24 at constant exchange rates Adjusted net income €78m Adj. EPS €1.04 14.2% EBITDA margin EBITDA €310m (1) Net debt and hybrid bonds Net debt (1)/EBITDA ratio at 2.6x Recurring cash flow €207m
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• Reduction of discretionary expenses • Streamlining of operations with the reorganization of Jarrie and Pierre-Bénite sites • Review of major procurement contracts and tightening of operational expenses • Yield and energy efficiency improvement • Digitalization initiatives to support operational efficiency • Capex adjustment, with focus on smaller size investments in attractive markets, decarbonization projects, maintenance and safety Large number of initiatives ramping up across all functions and business lines 07/11/2025Third-quarter 2025 results and outlook 3 A strong focus on cost savings Objective to broadly offset fixed costs inflation in 2025 and 2026 Strict management of our operations CAPEX reduced by €50m in 2026 to ~ €600m ~ €100m fixed and variable costs savings in 2025
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07/11/2025Third-quarter 2025 results and outlook 4 Sustainable innovation for next-generation batteries Inauguration of a new laboratory in France for next-generation battery • Dedicated to exploring and advancing the solvent-free dry coating process for battery electrodes • Hub for collaborative innovation with major cell makers and automotive players In 2030 EV will account for 40% of light vehicles worldwide An electrode production process accelerating efficiency and reducing environmental impact - 40% CO2 emission - 15% space needed in factories - 15% production costs LFP representing already 50% of battery technologies in 2024 and expected to continue to gain share Source : International Energy Agency, Global EV Outlook 2025
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07/11/2025Third-quarter 2025 results and outlook 5 Launch of a new One Arkema platform dedicated to the growing data center market Adhesive Solutions Advanced Materials Coating SolutionsOne Arkema Our ambition > €100m sales in 2030 Global market +10%/yr expected CAGR over 2025-30 Source : Grand View Research, Data Center Market Report • Kynar® PVDF and Rilsan® PA11 in tubing/piping & fitting • Foranext® 1233zd as cooling fluid and Oleris® as cooling fluid material • Oleris® bio-based C7 acid and Foranext® 1233zd in immersion cooling tanks • Kynar® PVDF, Rilsan® PA11 and Pebax® TPE in immersion cooling wire & cable Immersion cooling Wiring and cables Kynar® PVDF in overhead wire and cables with self extinguishing properties Chillers Forane® refrigerants for building cooling Waterproofing Ground and roof water protection with Seal&Block range and resins Direct to Chip cooling Flooring Durability, hygiene and resistance to chemicals with Boscofloor range
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Leveraging One Arkema solutions in the attractive and high value Advanced Electronics market Chip and PCB manufacturing Device manufacturing Chip and PCB production & packaging Display materials Device assemblyDevice components 6 Data centers 07/11/2025Third-quarter 2025 results and outlook UV/LED curing resins and bio-based specialty hot melts for chip encapsulation and PCB protection PVDF for ultra-purity water piping for chip manufacturing Hydrogen peroxide for etching Adhesive Solutions Advanced Materials Coating SolutionsOne Arkema PIAM polyimides films to protect and reinforce circuits PA11 for light and durable frames and casings UV/LED curing resins to protect foldable displays Engineering adhesives for high-strength assembly PIAM polyimides film and varnish for flexible OLED substrates and Chip on Film of display PVDF for longer lasting batteries UV/thermal cure adhesives for components bonding Adhesives and resins in waterproofing and flooring applications PVDF for wiring and cables Polyamides, PVDF and fluorospecialties in cooling
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Projects ramp-up supporting our strategic roadmap on Specialty Materials Third-quarter 2025 results and outlook 07/11/2025 7 Ashland Performance Adhesives Dow laminating adhesives Low GWP fluorospecialty (1233zd) Additive for biofuels and refinery (DMDS) HF with Nutrien PVDF for batteries North America Europe Pebax® for sports goods PI Advanced Materials (54%) PVDF for batteries Bio-based Amino 11 and PA11 Additives for renewable energy UV curing resins for electronics and medical Asia & RoW Additional contribution of projects to EBITDA Acquisition CAPEX +€60m in 2025 vs 2024 • Start-up of DMDS and low GWP fluorospecialty 1233zd units in the US • Singapore Amino 11 & PA11 plant reaching breakeven point • Mechanical completion finalized on the Rilsan® Clear unit in Singapore 2025 projects highlights
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07/11/2025Third-quarter 2025 results and outlook 8 Finalization of the refinancing of 2026 bond maturities Senior bond Green bond Hybrid bond RCF 2026 2027 2029 1,100 400 4.8%300 0.125% 900 1.5% 500 0.75% 300 1.5% 2030 2031 400 3.5% 700 4.25% 2034 500 3.5%400 4.25% Figures in €m 2033 3.5% 500 Issuance of a €500m green bond in September 2025 (3.5% rate, 8-year maturity) Extended debt1 maturity to 4.6 yrs at end-Q3 Solid credit rating maintained BBB+ stable outlook (S&P) Baa1 stable outlook (Moody’s) 1. Excluding hybrids
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Outlook FY’25 07/11/2025Third-quarter 2025 results and outlook 9 Global context marked by limited visibility, geopolitical tensions, the increase in tariffs and a weak demand environment. Large number of initiatives ramping up across all functions and business lines to optimize and streamline activities with the objective to broadly offset fixed costs inflation in 2025 and 2026. The Group confirms its objective of around €100 million of savings in fixed and variable costs in 2025. Ongoing ramp-up of major projects, for the most part already funded. Additional contribution to the Group’s EBITDA has been reassessed for 2025 at around €60 million. 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 €1.25 billion and €1.3 billion and a recurring cash flow of approximately €300 million in 2025.
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Detailed Q3 Results 07/11/2025
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Q3’25 financial highlights €310m EBITDA 14.2% EBITDA margin €78m adj. net income €3,403m net debt and hybrid bonds €2,187m sales → Very solid cash generation with a recurring cash flow above last year at €207m, reflecting the strict management of working capital and lower capex than last year → Net debt and hybrid bonds down by almost €200m in the quarter → Adhesive Solutions and Advanced Materials performance : • Lower volumes reflecting weak demand in Europe and the US, 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 €15m, mainly linked to the US dollar → Down 4.7% YoY at constant exchange rates: • Volumes down 2.5% reflecting the lower demand in the US 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 batteries, sports, 3D printing, healthcare and new-generation fluorospecialties • Negative 3.7% price effect, impacted essentially by the acrylic cycle and the old-generation refrigerant gases. More stable pricing in all other activities → Representing €1.04 per share 1107/11/2025Third-quarter 2025 results and outlook
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Key figures in €million 1207/11/2025Third-quarter 2025 results and outlook Q3’25 Q3’24 Change 9m’25 9m’24 Change 2,187 2,394 -8.6% 6,963 7,271 -4.2% 310 296 38 -24 407 377 51 -21 -23.8% -21.5% -25.5% 1,003 960 116 -73 1,208 1,109 174 -75 -17.0% -13.4% -33.3% 14.2% 14.7% 23.6% 17.0% 17.2% 26.7% 14.4% 14.9% 22.9% 16.6% 16.7% 28.9% 142 246 -42.3% 500 750 -33.3% 6.5% 10.3% 7.2% 10.3% 78 168 -53.6% 295 520 -43.3% 3,403 3,111 3,403 3,111 Sales EBITDA Specialty Materials Intermediates Corporate EBITDA margin Specialty Materials Intermediates Recurring operating income (REBIT) REBIT margin Adjusted net income Net debt and hybrid bonds
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Q3'24 Volumes Prices Currency Scope Q3'25 Sales evolution reflecting market conditions and currency effect -3.9% -2.5% -3.7% +1.5% 1307/11/2025Third-quarter 2025 results and outlook €2,187m €2,394m Positive trend in Asia, in particular China Integration of Dow’s laminating adhesives business Depreciation of the US dollar and certain Asian currencies against the euro Impact of the acrylic cycle Lower demand in the US over the summer and overall weakness in Europe Strong momentum in specific key markets namely batteries, sports, 3D printing, healthcare and new-generation fluorospecialties (+20% YoY sales growth) Price decrease in the old-generation refrigerant gases
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Adhesive Solutions (31% of Group sales in Q3’25) Q3’25 sales by Business Line Construction & Consumer Industrial Assembly Key figures Highlights Q3’25 → Limited sales decrease of 1% despite negative 3.8% change effect • Volumes down 3.1% - Broadly weak demand in industrial adhesives - Disappointing summer in the US, notably in flexible packaging and construction • Prices slightly down 1.1% - Benefits from certain raw material costs decline to start supporting net pricing more particularly from Q4’25 onwards • 7.0% positive scope effect, corresponding to the acquisition of Dow’s laminating adhesives → EBITDA affected mainly by lower volumes and currency effect • EBITDA margin down YoY, reflecting the decrease in EBITDA as well as the dilutive effect of Dow’s adhesives, in integration phase 14 Q3’25 sales development -3.1%Volumes Prices Currency Scope -1.1% -3.8% +7.0% 07/11/2025Third-quarter 2025 results and outlook 368 307 in €m Q3’25 Q3’24 Change 9m’25 9m’24 Change Sales 675 682 -1.0% 2,106 2,068 +1.8% EBITDA 93 107 -13.1% 295 321 -8.1% EBITDA margin 13.8% 15.7% 14.0% 15.5% REBIT 66 86 -23.3% 217 256 -15.2%
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Advanced Materials (37% of Group sales in Q3’25) High Performance Polymers Performance Additives 368 442 Key figures Highlights Q3’25 → Sales down 4.5% at constant exchange rates, impacted mainly by volume decrease in Performance Additives • Volumes down 3.9% - Performance Additives impacted by weak demand in the US and Europe, particularly in the energy markets, and Jarrie site’s reorganization - Stable volumes in High Performance Polymers, supported by strong growth in Asia, and positive momentum in several key markets such as sports, batteries, 3D printing, healthcare, and low GWP fluorospecialties • Prices broadly stable at a negative 0.6% → EBITDA mainly impacted by lower volumes in Performance Additives and unfavorable currency effect • Good level of EBITDA margin at 18.8% • HPP maintaining its solid margin level of 20% 15 -3.9%Volumes Prices Currency Scope -0.6% 07/11/2025Third-quarter 2025 results and outlook -4.0% - Q3’25 sales by Business Line Q3’25 sales development in €m Q3’25 Q3’24 Change 9m’25 9m’24 Change Sales 810 885 -8.5% 2,621 2,681 -2.2% EBITDA 152 189 -19.6% 503 541 -7.0% EBITDA margin 18.8% 21.4% 19.2% 20.2% REBIT 50 95 -47.4% 204 278 -26.6%
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Coating Solutions (25% of Group sales in Q3’25) 380 152 Coating Resins Coating Additives Key figures Highlights Q3’25 → Decrease of sales by 15.2% • Volumes down 5.8% - Weak demand environment, notably in construction and decorative paints markets, essentially in North America • Prices down 5.9% - Less favorable market conditions in upstream acrylics → EBITDA significantly down at €51m and EBITDA margin at 9.6% • Low cycle margins in upstream acrylics • Sales decline in the United States 16 -5.8%Volumes Prices Currency Scope -5.9% -3.5% - 07/11/2025Third-quarter 2025 results and outlook Q3’25 sales by Business Line Q3’25 sales development in €m Q3’25 Q3’24 Change 9m’25 9m’24 Change Sales 532 627 -15.2% 1,704 1,890 -9.8% EBITDA 51 81 -37.0% 162 247 -34.4% EBITDA margin 9.6% 12.9% 9.5% 13.1% REBIT 20 49 -59.2% 68 154 -55.8%
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Intermediates (7% of Group sales in Q3’25) Key figures Highlights Q3’25 → Sales down 15.7% • Sharp volume rise of 16.7% offset by negative 21.6% price effect on a high comparison basis - Impact of the shift in product mix in refrigerant gases led notably by the end of the production of 410A equipment in the US last year • Currency and scope impact at a negative 10.8% → EBITDA down at €38m and high level of EBITDA margin at 23.6% • Less favorable macroeconomic environment and impact of the evolution of the regulations in the US and Europe in refrigerant gases • Slight improvement in acrylics in Asia 17 +16.7%Volumes Prices Currency Scope -21.6% -5.1% 07/11/2025Third-quarter 2025 results and outlook -5.7% Q3’25 sales development in €m Q3’25 Q3’24 Change 9m’25 9m’24 Change Sales 161 191 -15.7% 506 603 -16.1% EBITDA 38 51 -25.5% 116 174 -33.3% EBITDA margin 23.6% 26.7% 22.9% 28.9% REBIT 32 39 -17.9% 95 142 -33.1%
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Very solid cash generation in Q3’25 18 → Continued strict management of working capital 17.3% of annualized sales at end-September 2025 (17.0% at end-June 2025 and 16.4% at end-September 2024) → Increased financial interests outflow in 2025 due to higher costs of our bonds and lower interests on invested cash → Lower capex in line with annual guidance of around €650m €131m in Q3’25 (vs €167m in Q3’24) 1. Excluding non-recurring items and impact of portfolio management in €million 07/11/2025Third-quarter 2025 results and outlook Q3’25 Q3’24 9m’25 9m’24 310 407 1,003 1,208 -25 -52 -98 -145 -30 -15 -83 -41 94 -6 -235 -337 -11 23 -36 13 338 357 551 698 -131 -167 -371 -436 207 190 180 262 - - - - -22 -15 -59 -52 185 175 121 210 2 -1 -5 -42 187 174 116 168 EBITDA Taxes Cash items included in the financial results Change in working capital and fixed assets payables (1) Others Operating cash flow Recurring capital expenditures Recurring cash flow Exceptional capital expenditure Non-recurring cash flow Free cash flow Net cash flow from portfolio management operations Net cash flow
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30/06/2025 Rec. cash flow Exceptional items M&A FX and others H1'25 Net debt decrease by almost €200m over the quarter 30/06/2025 30/09/2025 Rec. cash flow M&A FX and others 22 -207 2.6x LTM EBITDA 3,580 10 Exceptional items -2 3,403 in €million 1907/11/2025Third-quarter 2025 results and outlook
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20 Disclaimer The information disclosed in this document may contain forward-looking statements with respect to the financial condition, results of operations, business and strategy of Arkema. In a context marked by strong geopolitical tensions, where the evolution of the world economy remain 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 material risk factors such as among others, changes in raw material prices, currency fluctuations, implementation pace of cost-reduction projects, rising geopolitical tensions, and changes in general economic and business conditions. These risk factors are further developed in the 2024 Universal Registration Document. 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. Financial information since 2005 is extracted from the consolidated financial statements of Arkema. Quarterly financial information is not audited. The business segment information is presented in accordance with Arkema’s internal reporting system used by the management. Definitions and reconciliation tables for the main alternative performance indicators used by the Group are provided in the “Arkema third-quarter 2025 results press release” available on Arkema’s website at: www.arkema.com/global/en/investor-relations/ 07/11/2025Third-quarter 2025 results and outlook
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