Solvay stock weighs weak Q3 against rare-earth progress

Published on 11/04/2026 at 11:48 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Solvay stock faces weaker third-quarter earnings as Middle East disruption hits operations. A rare-earths supply deal supports its longer-term strategy.

Results Weigh On Solvay Outlook

Third-quarter underlying EBITDA fell organically as Middle East disruption and weaker soda ash demand pressured operations.
Solvay kept its 2026 EBITDA and free cash flow guidance after reporting final results in line with its preliminary figures.
A Viridis supply agreement supports the rare-earths strategy, while talks with OneIM continue.
The board approved a gross interim dividend of EUR 0.97 per share, payable in January 2027.

Solvay, BE0003470755, Illustration mit AI erstellt.

Solvay reported final third-quarter results on Wednesday, November 4, after the Belgian chemicals group had already released preliminary figures on October 19. In a press release carried by Yahoo Finance, the company said underlying net sales reached EUR 1.031 billion, down 3.3% organically from the third quarter of 2025.

Underlying EBITDA fell 26.6% organically to EUR 173 million, while the margin narrowed to 16.8% from 22.2%. Solvay attributed the decline to a EUR 25 million impact from the conflict in the Middle East and the absence of roughly EUR 40 million in proceeds from carbon-emissions rights sold in the year-earlier quarter.

Middle East Disruption Remains Central

The temporary suspension of Solvay's Peroxides plant at the Sadara complex in Jubail, Saudi Arabia, accounted for close to EUR 15 million of the third-quarter impact. The plant has remained shut since March. Solvay said it is exploring available mechanisms within the joint-venture framework to recover lost profitability, but the 2026 outlook excludes potential Sadara recovery payments.

Underlying net profit from continuing operations dropped to EUR 35 million from EUR 90 million a year earlier. Free cash flow to Solvay shareholders from continuing operations was EUR 54 million in the quarter, compared with EUR 117 million in the prior-year period. For the first nine months, free cash flow reached EUR 70 million, while capital expenditure stood at EUR 203 million.

Solvay stock traded at EUR 23.84 on Lang & Schwarz at 11:39 CET on Wednesday, November 4. Investors can follow the real-time quote of Solvay stock.

Rare Earths Add A Strategic Offset

Solvay signed a long-term supply agreement with Viridis for rare-earth feedstock starting in 2028. Management said the agreement should strengthen the supply chain for its separation activities and support growth opportunities at the La Rochelle site.

Discussions with investment fund OneIM are continuing. If they result in a definitive agreement, Solvay would contribute its rare-earths activities to a new joint venture while retaining a significant minority interest. The activities under consideration currently generate about EUR 80 million in annual underlying EBITDA.

Cost savings provide another counterweight to the weaker operating environment. Structural initiatives delivered an additional EUR 25 million in the third quarter, lifting cumulative savings to EUR 283 million. Solvay remains on track for its EUR 300 million year-end target.

Guidance And Dividend Hold Steady

Solvay maintained the outlook revised on October 19. It expects 2026 underlying EBITDA between EUR 720 million and EUR 740 million and free cash flow between EUR 120 million and EUR 150 million after transformation expenses. Capital expenditure is expected to remain below EUR 300 million, including planned investment to expand rare-earth separation capacity.

The board approved a gross interim dividend of EUR 0.97 per share, payable on January 20, 2027, with the ex-dividend date set for January 18. The company is scheduled to publish fourth-quarter and full-year 2026 results on March 4, 2027.

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