Solvay Faces 5.8 Percent Sales Dip but Saves 137 Million Euros to Stay Resilient

On May 8, Solvay released its Q1 2025 financial results, revealing a 5.8% organic decline in net sales, down to €1.122 billion compared to the same period in 2024. The drop was largely attributed to weaker soda ash demand, especially in March, as economic uncertainties led customers to scale back purchases. Most other business segments remained stable.

Despite the top-line pressure, structural cost savings played a crucial role. The company shaved off €27 million in the quarter, bringing the total savings since early 2024 to an impressive €137 million. Solvay also reported a recurring EBITDA of €250 million, representing an EBITDA margin of 22.3%, aided by a one-time €10 million gain from a favorable outcome in a patent dispute.

Recurring net profit from continuing operations came in at €102 million, down from €119 million a year ago. CEO Philippe Kehren acknowledged the challenging macro backdrop but emphasized confidence in Solvay’s localized, resilient operating model. He affirmed a focus on cost discipline and accelerated transformation, aimed at maximizing cash generation.

Looking ahead, Q2 sales are expected to remain broadly in line with Q1, but EBITDA is forecast to fall, landing between €1.0 to €1.1 billion on a full-quarter basis, due in part to the absence of the Q1 one-off and higher stranded costs from the termination of transitional services with Syensqo.

Solvay also flagged currency volatility as a key risk, estimating that every €0.05 change in USD could impact annual EBITDA by €15 million, while a €0.25 swing in BRL could affect it by €5 million.