Arkema Earnings: Solid EBITDA Delivery and Narrowed Full-Year Guidance

No moat Arkema reported second-quarter 2024 EBITDA of EUR 451 million, around 5% ahead of the company-compiled consensus and 8% ahead of the same period of last year. Although demand remained subdued across most end markets, the company achieved 5% year-on-year volume growth as it matched a relatively weak prior-year comparator, marked by destocking. Management narrowed the full-year 2024 EBITDA guidance range to between EUR 1.53 billion and EUR 1.63 billion from EUR 1.5 billion to EUR 1.7 billion previously given better visibility into the expected profit delivery of ongoing industrial projects and no anticipated meaningful demand recovery going into the year's second half. This is aligned with our forecast, and we confirm our EUR 110 fair value estimate. Shares were up around 2% in intraday trading Aug. 1 given the consensus beat and trade in 4-star territory.