Synthomer Q2 Trading Accelerates Amid Iran‑Linked Disruption
Synthomer Plc said trading accelerated in April and May 2026 as the U.S.–Iran conflict disrupted the global sourcing and distribution networks of competitors, particularly in Asia, sending volumes higher across several product areas. The company’s shares were down 5.8% at 05:01 ET (09:01 GMT).
In its 2026 Annual General Meeting trading statement, Synthomer reported strong growth in continuing‑group volume, revenue, EBITDA and EBITDA margin for the first five months of 2026 compared with the same period in 2025, with overall trading ahead of the prior year. Significant increases in raw‑material and energy costs were passed through to customers. Volumes in Health & Protection benefited from competitor disruption and pre‑buying by customers seeking supply‑chain resilience.
EBITDA growth in the second quarter exceeded the company’s expectations. Momentum improved for all three divisions through the first quarter, aided by some end‑market recovery, cost savings and targeted growth actions, including disciplined investment in key technologies such as data‑center coatings in the Coatings & Construction Solutions division and additional APO capacity in Adhesive Solutions. Strong performance in Coatings & Construction Solutions offset a slower start in parts of Health & Protection and Performance Materials.
Following a debt refinancing and maturity‑extension announced in April, Synthomer said it has good liquidity and covenant headroom, despite the unwind of an arrangement with KLK and the typical seasonal build‑up in working capital in the first half of the year. The company continues to progress non‑core divestment processes to accelerate the transformation of its business portfolio, as announced the prior week.
Chief Executive Officer Michael Willome stated, “We are very pleased with how the business has performed so far in 2026. The market environment remains uncertain and so our focus is on continuing to deliver our speciality strategy.” He added that the strong first‑half trading, together with continued benefits from prior‑year self‑help actions, supports confidence in delivering year‑on‑year progress in 2026, although the geopolitical context remains volatile and the duration of current conditions is uncertain.
Jefferies rates Synthomer “hold” with a price target of 65 pence, describing the update as “encouraging.” Consensus 2026 EBITDA estimates range between £145 million and £150 million and are likely to move higher. The brokerage noted that guidance commentary remains unchanged due to the wide range of possibilities for the second half, and highlighted risk around the sustainability of performance in the coming months, with high leverage remaining a core issue.