Synthomer (LON:SYNT – Get Free Report) released its earnings results on Tuesday. The company reported GBX (4.30) EPS for the quarter, Digital Look Earnings reports. Synthomer had a negative net margin of 9.03% and a negative return on equity of 16.66%.
Here are the key takeaways from Synthomer’s conference call:
- First-half results exceeded expectations: continuing-business revenue rose 5.1% in constant currency, EBITDA increased 13%, EBIT grew nearly 42%, and EBITDA margin expanded 80 basis points to 10.1%.
- The company raised its full-year 2026 outlook to slightly above market expectations, citing recurring specialty-product growth, cost savings, improved free cash flow, and year-end covenant leverage expected at 4.0x–4.35x versus 4.9x at June.
- Synthomer reported progress toward a more specialty-focused portfolio, including strong demand for data-center intumescent coatings, oil-and-gas drilling additives, medical adhesives, and sustainable products; three additional divestment processes could generate approximately £150 million–£200 million of proceeds.
- All three divisions delivered volume and revenue growth, while CCS EBITDA rose 33% and Adhesive Solutions continued its transformation program; however, the company expects the roughly £6 million benefit from second-quarter market disruption, particularly in NBR, not to recur in the second half.
- Adhesive Solutions lost approximately €10 million of gross margin from intermittent reliability issues at facilities in the Netherlands and Texas, although management expects both problems to be resolved during the third quarter; finance costs are also rising, with full-year income-statement interest expected at £73 million–£75 million.
Synthomer Trading Up 5.7%
Shares of Synthomer stock opened at GBX 104.60 on Wednesday. The firm has a market capitalization of £171.49 million, a PE ratio of -1.09, a price-to-earnings-growth ratio of -0.17 and a beta of 1.03. The company has a debt-to-equity ratio of 90.86, a current ratio of 1.57 and a quick ratio of 0.97. The company’s fifty day moving average price is GBX 93.69 and its two-hundred day moving average price is GBX 65.04. Synthomer has a 52-week low of GBX 16.70 and a 52-week high of GBX 123.95.
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About Synthomer
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 on the LSE since 1971, we employ c.3,800 employees across our five innovation centres of excellence and 29 manufacturing sites across Europe, North America, Middle East and Asia.
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