- Arkema’s second-quarter EBITDA margin aligned with expectations at 15.2%.
- The Adhesive Solutions division exceeded its EBITDA margin estimate, reaching 14.4% compared to the 14.1% forecast.
- Advanced Materials underperformed in margin expectations with an actual margin of 19.3%, against a 20.1% estimate.
- Coating Solutions posted a margin of 9.4%, below the anticipated 10.6%.
- Intermediates outperformed expectations, achieving a margin of 28.7%, versus the 25.6% estimate.
- Quarterly EBITDA was reported at €364 million, slightly below the €366.5 million estimate.
- Sales reached €2.40 billion, surpassing the expected €2.37 billion.
- Adhesive Solutions sales totaled €716 million, slightly above the €711.9 million forecast.
- Advanced Materials generated €917 million in sales, outperforming the €877.3 million projection.
- Coating Solutions fell short with sales of €565 million, against an estimate of €595.2 million.
- Intermediates sales were €188 million, below the expected €209.6 million.
- Adjusted net income was €118 million, not meeting the €125 million estimate.
- Free cash flow for the quarter amounted to €91 million.
- Net debt currently stands at €3.58 billion.
- Arkema anticipates an additional €50 million EBITDA contribution in 2025 compared to 2024.
- The company maintains a target of over €400 million EBITDA by 2028.
- The quarter was affected by a challenging macroeconomic environment with cautious customer behavior and unfavorable exchange rates.
- Analyst recommendations include 13 buys, 4 holds, and 2 sells.
A look at Arkema SA Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 5 | |
| Growth | 2 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Arkema SA, a chemical manufacturing company, has received a mixed outlook based on Smartkarma Smart Scores. With a high score in Dividend and Value, the company shows strength in these areas. Investors looking for stable returns and undervalued stocks might find Arkema SA appealing. However, the company’s Growth, Resilience, and Momentum scores indicate some areas of concern. Growth potential may be limited, and the company may face challenges in adapting to market changes. Despite these factors, Arkema SA remains a solid choice for those seeking consistent dividends and value-oriented investments.
Arkema SA is known for its wide range of chemical products, including industrial chemicals and performance products such as acrylics, PMMA, hydrogen peroxide, technical polymers, and specialty chemicals. The company’s strong focus on dividends and value, as indicated by high scores in these areas, showcases its commitment to rewarding investors and maintaining financial stability. While facing some challenges in growth, resilience, and momentum, Arkema SA‘s established position in the chemical industry positions it as a reliable option for investors seeking long-term dividends and value.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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