Regulated information July 31, 2025 7.00 a.m. CEST

SYENSQO SECOND QUARTER 2025 RESULTS

UNDERLYING EBITDA OF €335 MILLION INCREASED 8% SEQUENTIALLY WITH IMPROVED MARGIN IN CORE SEGMENTS FY 2025 OUTLOOK UPDATED FOR FX AND TARIFFS

Underlying (€ million)	Q2 2025	Q2 2024		Q1 2025 YoY change		YoY organic QoQ change	H1 2025	H1 2024	YoY change	YoY organic
Net sales	1,586	1,708	1,619	-7.1%	-3.5%	-2.0%	3,205	3,332	-3.8%	-2.4%
Gross profit	506	582	514	-13.0%	-	-1.5%	1,020	1,165	-12.5%	-
Gross profit margin	31.9%	34.1%	31.7%	-220 bps	-	20 bps	31.8%	35.0%	-310 bps	-
Underlying EBITDA	335	378	311	-11.2%	-8.3%	7.7%	646	740	-12.7%	-11.7%
Underlying EBITDA margin	21.1%	22.1%	19.2%	-100 bps	-110 bps	190 bps	20.2%	22.2%	-210 bps	-210 bps
1 Operating cash flow	20	43	176	-54.7%	-	-88.8%	195	287	-31.9%	-
1 Free cash flow	-67	-120	37	-43.7%	-	n.m.	-30	37	n.m.	-
1 Cash conversion (LTM)	72%	77%	68%	-500 bps	-	380 bps	72%	77%	-500 bps	-
ROCE (LTM)	6.9%	8.8%	7.1%	-190 bps	-	-20 bps	6.9%	8.8%	-190 bps	-

Q2 2025 Highlights

Net sales of €1.59 billion impacted by unfavorable year-on-year foreign exchange movements (-4%) and lower volumes (-3%) while pricing remained broadly stable; Year-on-year growth in Novecare;
Gross profit of €506 million decreased by 13% year-on-year, primarily driven by lower volumes and unfavorable foreign exchange movements, resulting in gross margin of 31.9%; On a sequential basis, gross margin improved by 20 basis points;
Underlying EBITDA of €335 million decreased by 8% year-on-year organically, primarily due to lower underlying EBITDA in Specialty Polymers; On a sequential basis, underlying EBITDA increased by 8%, led by Specialty Polymers;
Underlying EBITDA margin contracted by approximately 110 basis points year-on-year organically, but expanded by 190 basis points sequentially to 21.1%, led by improvements in both Materials and Performance & Care;
Underlying net profit, Syensqo share of €140 million;
Operating cash flow of €20 million; Free cash flow was a €67 million outflow;
Share buyback program: repurchased c.494,000 shares, or €30 million; 50% of €300 million program completed

Dr. Ilham Kadri, CEO

"The second quarter saw us deliver on our outlook in a challenging macroeconomic environment. Our strong value proposition, and continued focus on what we can control drove a 8 per cent sequential improvement in EBITDA, resulting in another quarter of resilient margin performance.

"This was also achieved against the backdrop of a significant strengthening of the Euro. Based on what we know today and the actions we are taking, we continue to expect a limited direct impact of tariffs on our full year results. Excluding these external factors, our full year outlook remains unchanged.

"We also remain focused on advancing our transformation and increasing our agility to capture market share. Through the disciplined exit from non-core businesses, we will become a purer play specialty company and following our successful IT and shared service separation, we can now accelerate cost savings initiatives during the second half of the year to go even further to support long-term profitable growth."

¹ Includes the €167 million payment to the New Jersey Department of Environmental Protection (NJDEP) in Q2 2024

2025 Outlook

Based on the assumptions provided in conjunction with our full year 2024 results (on February 27, 2025), our 2025 outlook remains unchanged.

For the balance of the year, we expect macroeconomic and demand weakness to continue across most of our end markets related to evolving tariff and geopolitical dynamics. These external factors are leading to reduced visibility as customers adapt to broader demand uncertainty. In addition, we have seen a significant strengthening of the Euro versus against major trading currencies, including the U.S. dollar.

Based on current information and subject to potential changes in tariffs, we continue to believe our global manufacturing footprint and proximity to customers, coupled with our mitigation actions should serve us well to manage our direct exposures to these headwinds, with limited impact currently expected to our full year underlying EBITDA.

Therefore, including the combined impacts of foreign exchange movements and tariffs (based on current information) of approximately €100 million, our full year 2025 outlook is as follows:

Underlying EBITDA of approximately €1.3 billion
Capital Expenditures to be below €600 million
Free Cash Flow of approximately €350 million

Given the challenging and uncertain environment, our focus remains on executing our cost saving initiatives as well as accelerating restructuring and efficiency initiatives as we complete the separation from Solvay. We continue to expect the phasing of these cost saving measures to be weighted towards the second half of the year with more than €200 million of run rate savings by the end of 2026. We believe these cost saving and efficiency initiatives will provide a strong foundation for growth in 2026 and beyond.

From a cashflow perspective, 2025 includes outflows related to the separation from Solvay and the final year of material investments related to the expansion of the Tavaux site in France, which are not expected to repeat in 2026.

Financial Review

Summary Income Statement

Underlying (€ million)	Q2 2025	Q2 2024	Q1 2025	YoY change	QoQ change	H1 2025	H1 2024	YoY change
Net sales	1,586	1,708	1,619	-7.1%	-2.0%	3,205	3,332	-3.8%
Gross profit	506	582	514	-13.0%	-1.5%	1,020	1,165	-12.5%
Gross profit margin	31.9%	34.1%	31.7%	-220 bps	20 bps	31.8%	35.0%	-310 bps
EBITDA	335	378	311	-11.2%	7.7%	646	740	-12.7%
EBITDA margin	21.1%	22.1%	19.2%	-100 bps	190 bps	20.2%	22.2%	-210 bps
EBIT	214	250	183	-14.2%	17.1%	397	501	-20.8%
Net financial charges	-37	-43	-33	-14.5%	12.6%	-70	-79	-11.2%
Income tax expenses	-42	-49	-44	-14.4%	-4.5%	-86	-109	-21.2%
Profit / (loss) attributable to Syensqo shareholders	140	159	100	-11.8%	41.1%	240	315	-23.8%
Basic earnings per share (in €)	1.37	1.51	0.96	-9.5%	41.9%	2.33	2.99	-22.0%

Net sales of €1.59 billion in the second quarter of 2025 were 7% lower on a reported basis, or 4% lower on an organic basis, versus the second quarter of 2024, in a challenging market environment. This decrease was primarily due to lower volumes in the Materials segment, partially offset by higher volumes in Novecare.

Gross profit of €506 million in the second quarter of 2025 decreased by 13% on a reported basis versus the second quarter of 2024, primarily driven by lower year-on-year gross profit in Specialty Polymers and Novecare.

On a year-on-year basis, gross margin of 31.9% in the second quarter of 2025 contracted by approximately 220 basis points. This was primarily due to lower gross margin in the Materials segment and, to a lesser extent, in Novecare. Sequentially, gross margin expanded 20 basis points, driven by favorable net sales mix and higher gross margin in Specialty Polymers, which was partially offset by lower gross margin in Other Solutions and Performance & Care.

Net sales bridge (€ million) Underlying EBITDA bridge (€ million)

Underlying EBITDA of €335 million in the second quarter of 2025 declined by 11% on a reported basis, or 8% organically versus the second quarter of 2024 driven by lower year-on-year gross profit as described above, partially offset by lower year-on-year operating expenses, supported by ongoing cost saving initiatives.

On a sequential basis, underlying EBITDA increased by 8% primarily driven by higher volumes in Specialty Polymers and lower Corporate & Business Services segment expenses, partially offset by lower underlying EBITDA in Composite Materials.

Underlying EBITDA margin of 21% in the second quarter of 2025 contracted by approximately 100 basis points or 110 basis points organically, versus the second quarter of 2024, primarily due to lower volumes in the Materials segment and unfavourable net sales mix, partially offset by lower Corporate & Business segment expenses.

On a sequential basis, underlying EBITDA margin expanded by approximately 190 basis points as higher underlying EBITDA margin in Specialty Polymers and lower Corporate & Business Services segment expenses were partially offset by lower underlying EBITDA margin in Composite Materials.

Summary of Cash Flow and Net Debt

Cash flow from operating activities totalled €20 million in the second quarter of 2025 versus €43 million in the second quarter of 2024. This was primarily due to lower year-on-year profitability, higher working capital-related cash outflows, higher separation costs, partially offset by the absence of the €167 million one-off payment to the New Jersey Department of Environmental Protection which was made in the second quarter of 2024.

Free cash flow to shareholders was an outflow of €67 million in the second quarter of 2025. This included €113 million of capital expenditure, comprising €62 million of growth capital expenditure and €50 million of sustenance capital expenditure. Capital expenditure in 2025 was 36% lower than the comparable period in 2024.

Cash and cash equivalents totaled €1,282 million at the end of the second quarter of 2025.

Cash conversion was 72% on a rolling 12-month basis.

Q2 2025 underlying EBITDA to Free cash flow bridge (€ million)

Underlying net financial debt amounted to €2,222 million at the end of June of 2025, versus €1,859 million at the end of 2024, resulting in a leverage ratio of 1.7x and a gearing ratio of 26%. The increase in underlying net financial debt versus the end of 2024 was primarily driven by shareholder returns (dividend payment and share repurchases), separation costs and, to a lesser extent, the free cash flow performance in the first half of 2025.

We expect a reduction in underlying net financial debt during the second half of 2025, primarily driven by expected higher free cash flow in the second half of the year, as well as the absence of the dividend payment which was made in the second quarter of 2025.

Underlying (€ million)	June 30, 2025	Dec 31, 2024	Change
Underlying gross debt	-3,569	-2,615	36.5%
Cash & cash equivalents	1,282	659	94.6%
Other financial instruments (current + non-current)	65	97	-32.9%
Underlying net debt	-2,222	-1,859	19.5%
Underlying leverage ratio	1.7x	1.3x	0.4x
Gearing ratio	26.3%	22.2%	410 bps

Segment Review

Materials (57% of Q2 2025 Group net sales, 72% of Group underlying EBITDA*)

* Excluding the contribution of Corporate & Business Services

Underlying (€ million)	Q2 2025	Q2 2024	Q1 2025	YoY change	YoY organic	QoQ change	H1 2025	H1 2024	YoY change	YoY organic
Net sales	908	988	898	-8.1%	-5.3%	1.1%	1,805	1,928	-6.4%	-5.6%
Specialty Polymers	620	679	580	-8.6%	-6.2%	6.8%	1,200	1,331	-9.8%	-9.0%
Composite Materials	288	309	317	-7.1%	-3.4%	-9.4%	605	597	1.3%	1.9%
EBITDA	269	303	254	-11.1%	-7.4%	6.0%	523	614	-14.8%	-13.4%
EBITDA margin	29.6%	30.6%	28.3%	-100 bps	-70 bps	140 bps	29.0%	31.8%	-290 bps	-260 bps

Net sales of €908 million in the second quarter of 2025 decreased by 8% on a reported basis, or 5% organically, versus the second quarter of 2024. The year-on-year decrease was primarily due to lower net sales in Specialty Polymers and, to a lesser extent, lower volumes in Composite Materials. This was partially offset by higher pricing in Composite Materials.

Materials net sales bridge (€ million)

On a sequential basis, Materials net sales increased by 1%, as higher net sales in Specialty Polymers were partially offset by lower net sales in Composite Materials.

Specialty Polymers net sales of €620 million in the second quarter of 2025 decreased by 9% year-on-year on a reported basis, or 6% organically, driven by lower volumes in Electronics and, to a lesser extent, lower pricing, most notably in the Automotive end market. This was partially offset by higher volumes in the Healthcare and Food & Pharmaceutical packaging end markets. Excluding the Electronics end market, volumes increased by 3% year-on-year.

Composite Materials net sales of €288 million in the second quarter of 2025 decreased by 7% on a reported basis, or 3% organically, versus a strong second quarter of 2024. The decline was driven by lower year-on-year volumes in civil aerospace, driven by the expected impact of the strike action at a major customer, as well as in automotive, which more than offset higher overall pricing. Net sales to space and defence applications increased by approximately 3% year-on-year.

Underlying segment EBITDA of €269 million in the second quarter of 2025 declined by 11% on a reported basis, or 7% organically versus the second quarter of 2024, primarily due to lower underlying EBITDA in Specialty Polymers and, to a lesser extent, by lower underlying EBITDA in Composite Materials.

Net pricing was flat on a year-on-year basis.

On a sequential basis, underlying segment EBITDA increased by 6% as higher underlying EBITDA in Specialty Polymers was partially offset by lower underlying EBITDA in Composite Materials.

Underlying EBITDA margin of 30% in the second quarter of 2025 decreased by approximately 100 basis points, or 70 basis points organically versus the second quarter of 2024. The decrease was primarily driven by lower year-on-year underlying EBITDA margin in Specialty Polymers as well as unfavourable net sales mix, as Composite Materials delivered stronger year-over-year growth compared to Specialty Polymers.

On a sequential basis, underlying EBITDA margin increased by approximately 140 basis points as higher underlying EBITDA margin in Specialty Polymers and favourable net sales mix was partially offset by lower underlying EBITDA margin in Composite Materials.

Performance & Care (32% of Q2 2025 Group net sales, 26% of Group underlying EBITDA*)

* Excluding the contribution of Corporate & Business Services

Underlying (€ million)	Q2 2025	Q2 2024	Q1 2025	YoY change	YoY organic	QoQ change	H1 2025	H1 2024	YoY change	YoY organic
Net sales	511	532	540	-4.0%	1.0%	-5.4%	1,051	1,033	1.7%	4.3%
Novecare	347	350	371	-0.9%	4.0%	-6.4%	718	698	2.8%	5.0%
Technology Solutions	164	182	169	-10.0%	-4.7%	-3.2%	333	336	-0.7%	2.9%
EBITDA	98	107	96	-8.3%	-10.1%	2.4%	194	202	-3.8%	-6.0%
EBITDA margin	19.2%	20.1%	17.7%	-90 bps	-240 bps	150 bps	18.5%	19.5%	-110 bps	-200 bps

Net sales of €511 million in the second quarter of 2025 declined by 4% on a reported basis but increased by 1% organically, compared to the second quarter of 2024, driven by higher volumes in Novecare, partially offset by lower volumes in Technology Solutions.

Performance & Care net sales bridge (€ million)

On a sequential basis, Performance & Care net sales declined by 5% driven by lower net sales in Novecare and, to a lesser extent, in Technology Solutions.

Novecare net sales of €347 million in the second quarter of 2025 declined by 1% on a reported basis but increased by 4% organically compared to the second quarter of 2024. The year-on-year growth was primarily driven by higher volumes, most notably in the Agro and Consumer end markets, partially offset by lower year-on-year sales in the Building end market.

Technology Solutions net sales of €164 million in the second quarter of 2025 decreased by 10% on a reported basis or 5% organically, compared to the second quarter of 2024, as higher volumes in mining were offset by lower volumes in phosphorus specialties.

Underlying segment EBITDA of €98 million in the second quarter of 2025 decreased by 8% on a reported basis or 10% organically, versus the second quarter of 2024, as higher underlying EBITDA in Novecare and, to a lesser extent, lower underlying EBITDA in Technology Solutions.

On a sequential basis, underlying segment EBITDA increased by 2% driven by higher underlying EBITDA in Novecare. Underlying EBITDA in Technology Solutions was approximately unchanged compared to the first quarter of 2025.

Underlying EBITDA margin of 19.2% in the second quarter of 2025 decreased by approximately 90 basis points on a reported basis and approximately 240 basis points organically versus the second quarter of 2024, as higher underlying EBITDA margin in Technology Solutions was offset by lower underlying EBITDA margin in Novecare.

On a sequential basis, underlying EBITDA margin increased by 150 basis points driven by higher underlying EBITDA margin in Novecare and, to a lesser extent in Technology Solutions.

Underlying (€ million)	Q2 2025	Q2 2024	Q1 2025	YoY change	YoY organic	QoQ change	H1 2025	H1 2024	YoY	YoY
									change	organic
Net sales	168	188	181	-10.6%	-6.7%	-7.2%	349	370	-5.8%	-4.5%
Aroma Performance	76	83	74	-8.7%	-5.9%	3.2%	150	165	-9.2%	-8.4%
Oil & Gas	92	105	107	-12.1%	-7.3%	-14.3%	199	206	-3.2%	-1.3%
EBITDA	8	18	17	-54.8%	-60.5%	-53.3%	26	30	-13.2%	-23.0%
EBITDA margin	4.9%	9.6%	9.6%	-470 bps	-660 bps	-480 bps	7.3%	8.0%	-60 bps	-180 bps

Underlying (€ million)	Q2 2025	Q2 2024	Q1 2025	YoY change	YoY organic	QoQ change	H1 2025	H1 2024	YoY change	YoY organic
Net sales	0	0	0	n.m.	n.m.	n.m.	0	0	n.m.	n.m.
EBITDA	-40	-50	-56	-20.0%	-27.1%	-28.3%	-96	-105	-8.2%	-13.9%

Key IFRS figures

	IFRS			Underlying
(€ million)	Q2 2025	Q2 2024	% YoY	Q2 2025	Q2 2024	% YoY	YoY organic
Net sales	1,586	1,708	-7.1%	1,586	1,708	-7.1%	-3.5%
EBITDA	254	336	-24.2%	335	378	-11.2%	-8.3%
EBITDA margin	16.0%	19.7%	-360 bps	21.1%	22.1%	-100 bps	-110 bps
EBIT	103	174	-40.8%	214	250	-14.2%	-
Net financial charges	-31	-43	-28.0%	-37	-43	-14.5%	-
Income tax expenses	-27	-104	-74.1%	-42	-49	-14.4%	-
Profit / (loss) attributable to Syensqo shareholders	50	29	n.m.	140	159	-11.8%	-
Basic earnings per share (in €)	0.49	0.28	n.m.	1.37	1.51	-9.5%	-

	IFRS			Underlying
(€ million)	H1 2025	H1 2024	% YoY	H1 2025	H1 2024	% YoY	YoY organic
Net sales	3,205	3,332	-3.8%	3,205	3,332	-3.8%	-2.4%
EBITDA	478	653	-26.8%	646	740	-12.7%	-11.7%
EBITDA margin	14.9%	19.6%	-470 bps	20.2%	22.2%	-210 bps	-210 bps
EBIT	165	347	-52.4%	397	501	-20.8%	-
Net financial charges	-64	-65	-0.9%	-70	-79	-11.2%	-
Income tax expenses	-54	-154	-65.2%	-86	-109	-21.2%	-
Profit / (loss) attributable to Syensqo shareholders	47	129	-63.2%	240	315	-23.8%	-
Basic earnings per share (in €)	0.46	1.22	-62.4%	2.33	2.99	-22.0%	-

Glossary

Cash flow from operating activities, or Operating cash flow are those generated from/(used by) the principal revenue-producing activities of the Group and other activities that are not investing or financing activities
Cash conversion Is a ratio used to measure the conversion of EBITDA into cash according to the formula ((Underlying EBITDA +/- Changes in working capital - Sustenance Capex) / (Underlying EBITDA). Sustenance capital expenditure includes capital expenditures for maintenance, for the implementation of the One Planet strategy and for Digital Transformation initiatives (excluding the ERP Rebuild Capex) as well as payment of lease liabilities
EPS is earnings per share
ERP Rebuild Project Costs: This significant multi-year project aims at the harmonization of the ERPs used by the Syensqo Group and at implementing new technologies that will position the Group for sustained growth and efficiency. It will generate costs and capital expenditures over the next 4-5 years
Free cash flow to Syensqo shareholders: Free cash flow after payment of net interests, coupons of perpetual hybrid bonds, dividends to non-controlling interests and capital injections and capital reimbursements from/to non-controlling interests. This represents the cash flow available to Syensqo shareholders, to pay their dividend and/or to reduce the net financial debt.
Gearing ratio: Underlying net debt / (underlying net debt + Equity Hybrid bonds in equity)
Net financial debt: Non-current financial debt + current financial debt cash & cash equivalents other financial instruments. Underlying net debt reclassified as debt 100% of the hybrid perpetual bonds, considered as equity under IFRS. It is a key measure of the strength of the Group's financial position and is widely used by credit rating agencies
Organic growth: growth excluding scope changes and forex conversion effects. The calculation is made by rebasing the prior period at the business scope and forex conversion rate of the current period
Return on Capital Employed (ROCE): the ratio between underlying EBIT (before adjustment for the amortization of Purchase Price Allocation - PPA) and capital employed. Capital employed consists of net working capital, tangible and intangible assets, goodwill, rights-of-use assets, investments in associates & joint ventures and other investments
Underlying figures adjust IFRS figures for the non-cash Purchase Price Allocation (PPA) accounting impacts related to acquisitions, for the coupons of perpetual hybrid bonds classified as equity under IFRS but treated as debt in the underlying statements, and for other elements to generate a measure that avoids distortion and facilitates the appreciation of performance and comparability of results over time
Underlying net financial charges include the coupons on perpetual hybrid bonds (accounted as dividends under IFRS, and thereby excluded from the income statement)

Contacts

Investors & Analysts		Media
[email protected]		[email protected]
Sherief Bakr	+44 7920 575 989	Perrine Marchal	+32 478 32 62 72
Bisser Alexandrov	+33 607 635 280	Laetitia Schreiber	+32 487 74 38 07
Loïc Flament	+32 478 69 74 20
Robbin Moore-Randolph	+1 470 493 2433

Safe harbor

This press release may contain forward-looking information. Forward-looking statements describe expectations, plans, strategies, goals, future events or intentions. The achievement of forward-looking statements contained in this press release is subject to risks and uncertainties relating to a number of factors, including general economic factors, interest rate and foreign currency exchange rate fluctuations, changing market conditions, product competition, the nature of product development, impact of acquisitions and divestitures, restructurings, products withdrawals, regulatory approval processes, all-in scenario of R&I projects and other unusual items. Consequently, actual results or future events may differ materially from those expressed or implied by such forward-looking statements. Should known or unknown risks or uncertainties materialize, or should our assumptions prove inaccurate, actual results could vary materially from those anticipated. The Company undertakes no obligation to publicly update or revise any forward-looking statements.

About Syensqo

Syensqo is a science company developing groundbreaking solutions that enhance the way we live, work, travel and play. Inspired by the scientific councils which Ernest Solvay initiated in 1911, we bring great minds together to push the limits of science and innovation for the benefit of our customers, with a diverse, global team of more than 13,000 associates.

Our solutions contribute to safer, cleaner, and more sustainable products found in homes, food and consumer goods, planes, cars, batteries, smart devices and health care applications. Our innovation power enables us to deliver on the ambition of a circular economy and explore breakthrough technologies that advance humanity.

Financial Calendar

● Nov 6, 2025: Q3 2025 results

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