Business
Trading Statement - Winter 2026
Synthomer plc expects to report 2025 revenue of approximately £1.74 billion and EBITDA in the range of £135-138 million, with year-end net debt projected at around £575 million, reflecting strong operational execution and cost reductions despite subdued end markets. The company achieved positive Free Cash Flow for the year, with a cash inflow in the second half, and its covenant net debt to EBITDA ratio remained within limits at 4.7-4.8x. Synthomer is progressing its divestment pipeline to support deleveraging and anticipates year-on-year progress in 2026 driven by self-help actions, even without a significant market recovery. Disclaimer*
About this update from Synthomer Plc
[{"type":"text","content":"\n\nSynthomer plc\nWinter trading statement\nPositive cash flow and robust earnings in subdued end markets\nSynthomer plc ('Synthomer' or the 'Group') today issues a scheduled update on trading for the twelve months to 31 December 2025. We expect to report 2025 revenue of c.£1.74bn (2024: £1.93bn) and EBITDA in the range of £135-138m for the continuing Group (2024: £143.1m), in line with market expectations. The continued focus on strong operational execution, together with expanded 'self-help' cost reduction programmes, have enabled us to mitigate the impact of softer end-market demand since global tariff changes were announced at the start of Q2 and deliver resilient earnings and an increased EBITDA margin.\n \nThe Group delivered positive Free Cash Flow for the year, with a cash inflow in the second half as expected. Year-end net debt is expected to be c.£575m (H1 2025: £638.3m, FY 2024: £597.0m) reflecting rigorous focus on profit and cash management, partially supported by the recently-announced £50m receivables arrangement with our largest shareholder, Kuala Lumpur Kepong Berhad Group. The Group's covenant net debt:EBITDA as at 31 December 2025 was 4.7-4.8x, well within the requirement of less than 5.25x.\n \nDespite the lower revenue in the year, the Group achieved a further improvement in gross and EBITDA margins, principally reflecting the ongoing strategic re-allocation of capital and other resources towards the higher margin, more resilient speciality solutions in our portfolio and 'self-help' cost reductions (mainly in the Coatings & Construction Solutions (CCS) division and in SG&A functions).\n \nDivisionally, Adhesive Solutions (AS) continued to regain share and enhance margins, supported by our product capacity investment in Texas. End-market demand across the CCS division was varied throughout the second half, with a slightly improved trend in Q4 in coatings offset by a slightly weaker period for construction and consumer sub-segments, while weak demand for energy solutions continued, reflecting low levels of oil and gas drilling activity. Health & Protection volumes for the medical glove market from both new and existing customers began to improve in Q4, although margins in this business remain substantially below pre-pandemic levels. \n \nAlongside robust operational execu...