Synthomer: Trading statement - Autumn 2026

Synthomer plc
Autumn 2026 trading statement

Q3 in line with expectations, continued strategic and operational momentum
FY outlook reaffirmed

Synthomer plc ('Synthomer' or the 'Group') today issues a scheduled update on trading for the third quarter of 2026.

•     Q3 performance in line with previously upgraded expectations for the full year, with volume, revenue and substantial EBITDA growth continuing

•     Strategic and operational initiatives driving ongoing momentum through product innovation, US / China growth and cost efficiency actions

•     Divestment processes progressing to enhance strategic focus and reduce debt

•     Confident in delivery of our full year 2026 outlook and sustained progress in 2027

Overall, the Group delivered ongoing improvement in Continuing Group volume, revenue and EBITDA in Q3 2026 vs Q3 2025, consistent with our upgraded expectations for the full year as set out in the interim results. Progress in the period was driven by strategic and operational momentum in the Coatings & Construction Solutions (CCS) and Adhesive Solutions (AS) divisions from new product and innovation growth initiatives and targeted regional growth in the USA and China, as well as delivery of further cost efficiencies across the Group.

Growth from innovative products or adjacent applications including in AI data centre construction, onshore oil and gas drilling and medical continued in the period. Ongoing disruption to petrochemical supply chains from the Middle East has meant that raw material costs have remained elevated, although the significant availability issues within competitor supply chains in Asia, which benefited primarily Health & Protection during Q2, have moderated with the relative net benefit to the Group more limited in the period.

We demonstrate pricing power by delivering robust pass through of higher raw material costs across the Group, reflecting the importance of our differentiated speciality products to our customers and the increasing value ascribed to our agile, 'in region for region' manufacturing and world-class procurement capabilities. In addition, we have maintained our rigorous focus on cost management. This is evident in the progression in year to date margins in all three divisions and enhances the Group's operational gearing benefits from further top line growth.  

In summary, we remain confident of delivering our full year 2026 outlook, reflecting the strong EBITDA outturn in the first half and our expectations of ongoing strategic growth and cost efficiency progress through the remainder of the year. As the benefits of our strategic initiatives continue to compound we expect to sustain our positive momentum in 2027.

We also remain very focused on cash generation and expect to deliver positive free cash flow before non-recourse receivables financing movements for the full year. With leverage at the end of September reduced as expected compared with the end of June, we continue to expect an improvement in covenant net debt: EBITDA to 4.0-4.35x (excluding further divestments) by the end of 2026, providing significant covenant headroom.

Alongside operational execution, we are making progress with the strategic transformation of the Group towards more differentiated speciality businesses and the structural improvement of our balance sheet. The divestment of the Acrylate Monomers business based in the Czech Republic was completed on 30 September as planned, removing a cyclical and capital-intensive base chemicals business from the Group, improving profitability and cash generation, and further transitioning the simplified portfolio towards a speciality focus. We continue to make good progress on our other divestment projects.

Commenting, Synthomer CEO Michael Willome said:

"Synthomer continues to deliver strong strategic and operational momentum as we increase the focus towards our differentiated speciality business and by 'controlling the controllables'. This includes innovating to develop higher margin products and reach new markets, growing in the USA and China, and supporting customer-led sustainability developments. At the same time, we remain focused on optimising our regional manufacturing strategy and delivering further cost and complexity reductions. The geopolitical and market environment remains volatile, but we are confident that by executing our speciality strategy we will drive earnings growth and improved free cash flow over the remainder of 2026, with significant opportunity and sustained momentum in 2027."

Further information:

Notes

Synthomer plc is a leading supplier of high-performance, highly specialised polymers and ingredients that play vital roles in key sectors such as coatings, construction, adhesives, and health and protection - growing markets for customers who serve billions of end users worldwide. Headquartered in London, UK and listed there since 1971, we employ c.3,500 employees across our five innovation centres of excellence and 28 manufacturing sites across Europe, North America, Middle East and Asia. With more than 6,000 blue-chip customers and £1.7bn in continuing revenue in 2025, our business is built around three divisions, serving customers in attractive end markets where demand is driven by global megatrends including urbanisation, demographic change, climate change and sustainability, and shifting economic power.

In Coatings & Construction Solutions, our specialist polymers enhance the sustainability and performance of a wide range of coatings and construction products. We serve customers in applications including architectural and masonry coatings, mortar modification, waterproofing and flooring, fibre bonding, and energy solutions. In Adhesive Solutions our products help our customers bond, modify and compatibilise surfaces and components for applications including tapes and labels, packaging, hygiene, tyres and plastic modification, improving permeability, strength, elasticity, damping, dispersion and grip. In Health & Protection and Performance Materials we are a world-leading supplier of water-based polymers for medical gloves, and a major European manufacturer of high-performance binders, foams and other products serving customers in a range of end markets.

Our purpose is creating innovative and sustainable solutions for the benefit of customers and society. Around 20% of our sales volumes are from new and patent protected products. At our innovation centres of excellence in the UK, China, Germany, Malaysia and Ohio, USA we collaborate closely with our customers to develop new products and enhance existing ones tailored to their needs, with an increasing range of sustainability benefits. Our 2030 decarbonisation targets have been approved by the Science Based Targets initiative as being in line with what the latest climate science says is necessary to meet the goals of the Paris Agreement, and since 2021 we have held the London Stock Exchange Green Economy Mark, which recognises green technology businesses making a significant contribution to a more sustainable, low-carbon economy. Find us at www.synthomer.com or search for Synthomer on LinkedIn.

Legal Entity Identifier (LEI): 213800EHT3TI1KPQQJ56.