Arkema Delivers Robust Q2 2026 Results Amid Middle East Crisis
Arkema delivered a robust second-quarter 2026 performance against a backdrop of geopolitical turbulence and rising input costs. The French specialty chemicals group reported EBITDA of €391 million, up 7.4% year-on-year, with the EBITDA margin expanding to 16.1% from 15.2% in the prior-year quarter. Organic sales growth reached 3.2%, supported by pricing dynamics and improving momentum in Asia.
The quarter was marked by the outbreak of conflict in the Middle East, which triggered a sharp increase in raw material costs. Arkema responded with swift pricing adjustments to offset input cost inflation, demonstrating the pricing power embedded in its specialty portfolio. Chairman and CEO Thierry Le Hénaff highlighted the Group’s agility: “Arkema’s teams once again demonstrated agility and commitment. We were particularly pleased with the significant improvement in Adhesives and Coatings as well as the better dynamics in HPP. This demonstrates the strength of Arkema’s portfolio including its positioning in key markets such as electric mobility, advanced electronics, datacenters and bio-based consumer goods.”
Performance was contrasted across the Group’s four segments. Adhesive Solutions led the improvement, benefiting from growth in industrial applications. Coating Solutions recovered well from last year’s depressed level. Advanced Materials saw a mixed picture: Performance Additives weakened while High Performance Polymers (HPP) gained momentum, reflecting demand in batteries, electronics, and 3D printing. Primary Materials was supported by improving acrylic spreads, partially offset by the ongoing decline of old-generation refrigerants.
Strict cost discipline and continued organisational streamlining remained priorities, in line with the objective of offsetting fixed-cost inflation over the full year. Recurring cash flow came in at €78 million despite a working-capital increase driven by higher raw material prices and traditional seasonality. Capital expenditure was lower year-on-year, tracking the €600 million annual target. Net debt remained broadly stable at €3.6 billion after the dividend payment, confirming balance-sheet solidity in weak market conditions.
Regionally, Europe continued to face challenges, particularly in France and Germany. North America showed slight improvement, while Asia delivered good momentum, notably in South-East Asia and India.
Arkema confirmed its full-year 2026 outlook: within an uncertain global environment, the Group is confident of delivering EBITDA slightly higher than 2025 at constant exchange rates, based on H1 achievements.
Sources
- Arkema, “Second-quarter 2026 results,” press release, July 30, 2026. Available at: https://www.arkema.com/global/en/media/newslist/news/global/investorrelations/2026/20260730--second-quarter-2026-results/
- Arkema, Q2 2026 Results Presentation (PDF). Available via Arkema investor relations website.