Solvay and Syensqo Set New Financial Targets Ahead of Separation

by Warren Seah

By Pierre Bertrand

Solvay and Syensqo have outlined their new financial targets as they prepare for their planned separation.

Solvay’s Targets

EssentialCo, which will continue to operate under the Solvay name, aims for annual average organic underlying earnings before interest taxes depreciation and amortization (Ebitda) growth in the mid-single digit percentage range. As part of its strategy, the company will focus on the mono-technology businesses previously included in Solvay’s chemicals and special chemicals segment. EssentialCo also plans to achieve underlying Ebitda margin percentage expansion in the mid to high 20s. These targets are set for the year 2028.

Syensqo’s Growth Strategy

Syensqo, on the other hand, is preparing to become an independent listed company as it separates from Solvay. The company has unveiled its five-year growth strategy and is awaiting shareholder approval on December 8. Syensqo aims for net sales growth of 5% to 7% over the period from 2024 to 2028. Additionally, the company targets an underlying Ebitda margin in the mid-20% range by 2028 and a mid-teen range for return on capital employed. Meeting these mid-term targets is expected to generate over 7 billion euros ($7.48 billion) in cash between 2024 and 2028 for Syensqo.

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