Synthomer (LON:SYNT) Announces Quarterly Earnings Results

Synthomer (LON:SYNT) released its earnings results on Tuesday. The company reported GBX (4.30) earnings per share 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 Price Performance

Shares of SYNT opened at GBX 90.49 on Tuesday. The business’s 50 day moving average price is GBX 93.98 and its two-hundred day moving average price is GBX 64.79. Synthomer has a 52-week low of GBX 16.70 and a 52-week high of GBX 123.95. The company has a debt-to-equity ratio of 90.86, a quick ratio of 0.97 and a current ratio of 1.57. The firm has a market cap of £148.35 million, a PE ratio of -0.94, a price-to-earnings-growth ratio of -0.17 and a beta of 1.03.

Wall Street Analyst Weigh In

A number of research firms have recently issued reports on SYNT. Jefferies Financial Group reaffirmed a “hold” rating and issued a GBX 65 price objective on shares of Synthomer in a research report on Thursday, April 30th. Peel Hunt reaffirmed a “buy” rating and set a GBX 200 price objective on shares of Synthomer in a research report on Tuesday. Finally, Berenberg Bank raised their price objective on shares of Synthomer from GBX 60 to GBX 100 and gave the stock a “hold” rating in a research report on Wednesday, May 6th. One equities research analyst has rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of GBX 109.40.

Synthomer Company Profile

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.