For the quarter, the company reports good resilience in its High Performance Polymers and Adhesive Solutions segments. It saw a significant decline in its Coatings Solutions and Intermediates segments. 

Chairman and CEO Thierry Le Hénaff commented, "The macroeconomic environment remained difficult in the second quarter, marked notably by the wait-and-see attitude of customers in response to tariffs and by the unfavorable evolution of exchange rates. Arkema's teams continue to adapt with agility and commitment, as they have done in the past in similar contexts, and to work simultaneously across both short- and long-term time horizons.

"In the short term, cost and cash management actions are being significantly strengthened. Furthermore, operating with a long-term perspective, the Group is pursuing its strategy of development centered on innovative materials with the execution of its major projects and its innovation dynamic focused on its large growth platforms such as batteries, sustainable consumer goods or efficient buildings.

"The ramp-up of our bio-based polyamide plant and the announcement of a new Rilsan® Clear transparent polyamide unit on our Singapore platform, where we gathered a large number of clients and the local authorities in mid-July, as well as the start-up of our additives plant for refining and biofuels in Texas are all assets which are serving this strategy."

Outlook

Within a macroeconomic environment marked by continuing weakness in demand, geopolitical uncertainties, and unfavorable evolution of exchange rates relative to the euro, Arkema is focusing as a priority on the elements that are within its control, and is significantly strengthening its cost-cutting initiatives, aiming to achieve €100 million of fixed and variable cost savings over the year, i.e., double the original target. Cash will continue to receive a particular attention, notably through strict management of working capital and capital expenditures.

The group will also rely on the ramp-up of its major projects in high-value-added innovative applications and in fast growing regions. Their additional EBITDA contribution is now expected to reach around €50 million in 2025 compared to 2024, with the group also reaffirming its target of over €400 million in 2028.

Furthermore, Arkema anticipates a limited direct impact from the increase in tariffs thanks to its industrial footprint close to customers in the three major regions of the world but will nevertheless remain vigilant about their indirect impact on the macroeconomic environment and the wait-and-see attitude of customers.

Based on these elements, the group now expects to achieve EBITDA of between €1.3 billion and €1.4 billion in 2025, including an unfavorable impact linked to the evolution of exchange rates of around €50 million compared to last year. Recurring cash flow should adjust accordingly to between €300 million and €400 million.

Finally, beyond the short-term priorities, Arkema will also continue to implement its strategic roadmap, notably its innovation focus and the development of high-performance solutions for a less carbon-intensive and more sustainable world, in close partnership with its customers. 

Additional information about Arkema is available at www.arkema.com.