Solvay stock weighs weak Q3 against rare-earth supply deal
Published on 11/06/2026 at 11:17 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSResults And Rare-Earth Strategy
- Third-quarter underlying EBITDA fell organically as Middle East disruption and weak soda ash demand pressured operations.
- Solvay signed a long-term feedstock agreement with Viridis, with shipments from Brazil to France expected to start in 2028.
- The company maintained its revised 2026 EBITDA and free cash flow outlook and approved an interim dividend of EUR 0.97 per share.
Solvay said on Wednesday, November 4, that third-quarter performance was weakened by the conflict in the Middle East and continued pressure in soda ash. The company also announced a long-term supply agreement with Viridis Mining and Minerals that is intended to strengthen its rare-earths business.
Underlying net sales fell 3.3 percent organically year on year to EUR 1.031 billion in the three months through September. Underlying EBITDA declined 26.6 percent organically to EUR 173 million, with the margin dropping to 16.8 percent from 22.2 percent a year earlier.
Solvay said the Middle East conflict reduced third-quarter underlying EBITDA by approximately EUR 25 million. The main operational effect came from the continued suspension of the Peroxides plant at the Sadara complex in Jubail, Saudi Arabia, which accounted for approximately EUR 15 million of the quarterly impact. The comparison was also affected by approximately EUR 40 million of proceeds from carbon dioxide emissions rights recorded in the prior-year quarter.
Pressure On Earnings Persists
Basic Chemicals remained the main drag on the quarter. Segment sales fell 8.4 percent organically, while segment underlying EBITDA decreased 20.0 percent organically. Performance Chemicals provided an offset, with sales rising 5.1 percent organically and underlying EBITDA increasing 17.3 percent organically.
Underlying net profit from continuing operations fell to EUR 35 million from EUR 90 million. Free cash flow to Solvay shareholders from continuing operations was EUR 54 million in the quarter and EUR 70 million in the first nine months, compared with EUR 117 million and EUR 214 million respectively a year earlier. Solvay said the quarterly cash flow included a EUR 28 million one-off insurance settlement.
Management kept the outlook communicated on October 19. Underlying EBITDA is expected between EUR 720 million and EUR 740 million in 2026, while free cash flow from continuing operations to shareholders is projected between EUR 120 million and EUR 150 million after approximately EUR 90 million of transformation expenses. Capital expenditure is expected below EUR 300 million.
Rare-Earth Supply Secured
In a separate November 4 announcement, Solvay said it had signed a long-term agreement with Viridis for mixed rare-earth feedstock from the Colossus project in Brazil. Shipments to Solvay's La Rochelle facility in France are expected to start in 2028, and the initial term runs through 2034.
The material will include neodymium, praseodymium, dysprosium and terbium, which are used in permanent magnets, as well as samarium, gadolinium and yttrium. Solvay said minimum committed volumes for the four magnetic rare earths represent approximately 70 percent of anticipated Colossus production during the initial term. Solvay also holds a right of first offer on the remaining production.
According to Solvay's results release, Chief Executive Philippe Kehren said the agreement could help the La Rochelle plant unlock future growth opportunities. The company is also discussing a separate arrangement under which it would license technology and provide technical support to Viridis for upgraded carbonate production in Brazil.
Solvay stock traded at 24.21 euros on Lang & Schwarz at 11:08 CET on Friday, November 6, 2026. Investors are weighing near-term operating pressure against the company's cost program, portfolio actions and longer-term rare-earth ambitions. Solvay said structural cost savings reached EUR 283 million since the program began and remain on track for EUR 300 million by the end of 2026.
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Solvay Company Facts
- Company: Solvay
- ISIN: BE0003470755
- Ticker: SOLB
- Primary listing: Euronext Brussels
- Price: EUR 24.21 on Lang & Schwarz at 11:08 CET, November 6, 2026
- Sector: Chemicals
