Solvay stock weighs Q3 earnings setback against rare-earth supply

Solvay reported weaker third-quarter profitability on November 4, while advancing its rare-earth strategy with a long-term supply agreement. In its third-quarter results, the Belgian chemicals group said the Middle East conflict and soft soda ash demand reduced operating performance.

Solvay's underlying net sales reached EUR 1.031 billion in Q3 2026, down 3.3% organically from the same quarter a year earlier. Underlying EBITDA fell 26.6% organically to EUR 173 million, reducing the margin to 16.8% from 22.2%.

The company attributed about EUR 25 million of the EBITDA impact to the Middle East conflict. The temporary suspension of the Peroxides plant at the Sadara complex in Jubail, Saudi Arabia, accounted for close to EUR 15 million of that quarterly effect. The comparison was also affected by about EUR 40 million of proceeds from carbon dioxide emissions rights recorded in Q3 2025.

Guidance remains under pressure

Solvay retained the outlook revised on October 19. It expects underlying EBITDA of EUR 720 million to EUR 740 million in 2026 and free cash flow from continuing operations to shareholders of EUR 120 million to EUR 150 million, net of about EUR 90 million in transformation expenses. Capital expenditure is expected to remain below EUR 300 million.

Management said structural cost savings reached EUR 283 million since the program began, keeping the group on track for its EUR 300 million target by the end of 2026. Underlying net profit from continuing operations fell to EUR 35 million from EUR 90 million a year earlier, while free cash flow to shareholders from continuing operations reached EUR 54 million in the quarter and EUR 70 million in the first nine months.

Solvay stock traded at 24.62 euros on Lang & Schwarz at 11:08 CET on Tuesday, November 10, 2026.

Rare-earth supply gains visibility

Alongside the earnings pressure, Solvay signed a long-term supply agreement with Viridis Mining and Minerals. The agreement covers mixed feedstock from Viridis' Colossus project in Brazil for Solvay's La Rochelle facility in France, with shipments expected to begin in 2028 and an initial term through 2034.

The committed volumes include neodymium, praseodymium, dysprosium and terbium, key materials for permanent magnets. They represent approximately 70% of the anticipated production capacity of the Colossus project during the initial term, while Solvay also holds a right of first offer on remaining production.

The agreement strengthens supply visibility for La Rochelle but does not remove the execution risks tied to the Brazilian project and future demand. Solvay is also continuing discussions with OneIM about a possible joint venture for its rare-earth activities. The company says it would retain a significant minority interest if a definitive agreement is reached, but no transaction has been completed.

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