Solvay stock weighs Q3 profit drop against rare-earth deal

Solvay reported weaker third-quarter profitability on Wednesday, November 4, as the Middle East conflict disrupted operations and soda ash markets remained soft. In the company’s official results release, management also highlighted progress in rare earths through a long-term supply agreement with Viridis Mining and Minerals.

Profitability takes another hit

Underlying sales reached 1.031 billion euros in the third quarter, down 1.3 percent from the year-earlier period and 3.3 percent organically. Underlying EBITDA fell to 173 million euros from 232 million euros, a 26.6 percent organic decline. The margin narrowed to 16.8 percent from 22.2 percent.

Solvay said the conflict reduced third-quarter underlying EBITDA by about 25 million euros, primarily because operations at the Peroxides plant in the Sadara complex in Jubail, Saudi Arabia, remained suspended. The comparison was also affected by about 40 million euros of proceeds from carbon dioxide emissions rights recorded in the year-earlier quarter. Cost savings contributed 25 million euros during the period, taking cumulative savings since the program began to 283 million euros.

Guidance remains unchanged

Solvay kept the outlook it revised on October 19. Excluding potential revenue or recovery measures from Sadara for the remainder of 2026, 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 about 90 million euros of transformation expenses. Capital expenditure is expected to remain below 300 million euros.

Free cash flow from continuing operations reached 54 million euros in the quarter and 70 million euros in the first nine months. Underlying net debt stood at 1.8 billion euros at the end of September, corresponding to a leverage ratio of 2.4 times. The board approved an interim dividend of 0.97 euros per share for payment on January 20, 2027.

Rare-earth supply secured from 2028

The agreement with Viridis is intended to supply mixed rare-earth feedstock from the Colossus project in Brazil to Solvay’s La Rochelle facility in France. Shipments are expected to start in 2028, with an initial agreement term running through 2034. Minimum committed volumes for neodymium, praseodymium, dysprosium and terbium represent about 70 percent of the project’s anticipated production capacity during the initial term.

The contract strengthens visibility for Solvay’s rare-earth separation plans, but the potential partnership with OneIM remains under discussion. Solvay has said it could contribute its rare-earth activities to a new joint venture while retaining a significant minority stake; no definitive agreement has been announced.

Solvay stock traded at 24.69 euros on Lang & Schwarz at 11:07 CET on Monday, November 9, 2026. Investors can follow the real-time quote of Solvay stock.

European investors will also watch broader developments in the current market reports.

For the company’s next strategic catalyst, the focus remains on the progress of the OneIM discussions, the ramp-up of rare-earth investments at La Rochelle and the delivery of the unchanged 2026 targets. More news and analyses on Solvay stock are available here.