Belgian chemical producer Solvay lowered its full-year 2026 earnings guidance on October 19 after the Middle East conflict and the continued shutdown of a peroxide plant at the Sadara complex in Jubail, Saudi Arabia, hit its third-quarter performance. In a preliminary financial update, the company said the regional conflict reduced underlying EBITDA by approximately €25 million during the quarter, including nearly €15 million attributable to the peroxide plant shutdown. Solvay had already recorded around €20 million in related losses during the second quarter.
Solvay now expects full-year underlying EBITDA of €720 million to €740 million, down from its previous forecast of €770 million to €850 million. Its free cash flow guidance was also cut to €120 million–€150 million from at least €200 million. The revised forecast excludes any potential revenue or financial recovery from Sadara during the remainder of the year.
Preliminary third-quarter figures showed underlying net sales of €1.03 billion and underlying EBITDA of €173 million. Free cash flow to Solvay shareholders from continuing operations reached €54 million. The figures remain subject to the company's quarter-end closing process.
Solvay operates its peroxide business at the Jubail complex through a joint venture with Sadara, which is majority-owned by Saudi Aramco. The company said the joint-venture agreement includes mechanisms that could allow it to recover lost profitability, and it is examining available options to limit the financial damage. Solvay did not announce a restart date for the affected plant or specify the amount it might recover.
The Middle East-related losses have been incorporated into Solvay's revised full-year guidance as the company continues its cost-saving and transformation programme. Its full third-quarter financial results are scheduled for November 4.
