Solvay stock weighs Q3 earnings hit against rare-earth supply deal

Solvay reported weaker third-quarter results on Wednesday, November 4, 2026, while advancing its rare-earth strategy through a long-term supply agreement with Viridis. The company said the Middle East conflict and weak soda ash demand weighed on operating performance, while Performance Chemicals provided a partial offset. The figures and outlook were published in Solvay's third-quarter results release.

Underlying net sales reached 1,031 million euros, down 3.3 percent organically from the same quarter a year earlier. Underlying EBITDA fell 26.6 percent organically to 173 million euros, cutting the margin to 16.8 percent from 22.2 percent. Underlying net profit from continuing operations declined to 35 million euros from 90 million euros.

Middle East disruption weighs on earnings

Solvay attributed about 25 million euros of the quarterly EBITDA impact to the conflict in the Middle East. The temporary suspension of its Peroxides plant at the Sadara complex in Jubail, Saudi Arabia, accounted for close to 15 million euros, with higher energy and logistics costs adding further pressure.

The company also faced lower volumes in Peroxides and soda ash. Soda Ash and Derivatives sales fell 7.5 percent organically, while Performance Chemicals sales rose 5.1 percent organically and its underlying EBITDA increased 17.3 percent organically. Solvay said structural cost savings delivered another 25 million euros in the quarter, taking cumulative savings since the program began to 283 million euros.

Solvay stock traded at 24.36 euros on Lang & Schwarz at 11:14 CET on Wednesday, November 11, 2026.

Rare-earth supply chain gains visibility

The Viridis agreement gives Solvay strategic rare-earth feedstock from 2028 for its separation facility in La Rochelle, France. The initial term runs through 2034, with material supplied from Viridis' Colossus project in Brazil. Solvay also continues discussions with OneIM about a possible joint venture for its rare-earth activities, while retaining a significant minority interest if an agreement is reached.

Management presented the Viridis contract as a step toward a more integrated supply chain and future growth at La Rochelle. The initiative is strategically relevant because rare-earth separation serves demand linked to permanent magnets and other advanced applications, but the commercial benefits depend on future supply, customer commitments and investment execution.

Revised 2026 outlook remains in place

Solvay maintained its revised 2026 outlook, excluding potential revenue or recovery measures from Sadara. The company expects underlying EBITDA of 720 million to 740 million euros and free cash flow to Solvay shareholders from continuing operations of 120 million to 150 million euros, net of roughly 90 million euros in transformation expenses. Capital expenditure is expected to remain below 300 million euros.

Free cash flow to shareholders from continuing operations reached 54 million euros in the quarter and 70 million euros in the first nine months. Solvay said the quarterly figure benefited from a 28 million euro one-off insurance settlement linked to a former business, an effect investors should separate from recurring cash generation.

The Board approved an interim gross dividend of 0.97 euros per share, payable on January 20, 2027. The payout is stable compared with the previous year and equals 40 percent of the 2025 total dividend.

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