Synthomer (LSE:SYNT) has reiterated its 2025 outlook, projecting continuing revenue of around £1.74 billion and EBITDA in the range of £135 million to £138 million. The company also expects improved margins and positive free cash flow, supported by expanded cost-saving initiatives. Covenant net debt to EBITDA stood at approximately 4.7–4.8 times, remaining comfortably within agreed limits. Trading in early 2026 has been broadly in line with expectations, with volumes gradually strengthening despite softer demand in some markets and higher raw material and energy costs linked to the conflict in Iran.
Management said the company has been able to pass on increased input costs through pricing adjustments. It also noted that operations across its global supply chain and its Middle East joint venture continue to run normally. Looking ahead, the group expects further progress during 2026 largely through operational improvements and internal efficiency measures.
Synthomer is currently engaged in discussions with lenders to amend covenants and extend the maturity of key revolving credit and UK Export Finance facilities that are due in the second half of 2027. The company intends to reduce leverage primarily through an expanded divestment programme rather than issuing new equity. Major shareholder KLK has reaffirmed its support during the process. The publication of Synthomer’s 2025 results has been delayed until late April 2026 while refinancing negotiations continue.
The company’s outlook remains challenged by weak profitability and relatively high leverage. Technical indicators present mixed signals, with short-term momentum appearing positive but longer-term trends still negative. Valuation metrics are also limited due to a negative price-to-earnings ratio. However, positive corporate developments, including insider share purchases and strategic management actions, provide some potential for improvement in the future.
More about Synthomer
Synthomer is a London-based specialty chemicals company and a major global supplier of high-performance polymers and related materials used in coatings, construction, adhesives, and health and protection applications. The company has been listed in the UK since 1971 and operates five innovation centres and 29 manufacturing facilities across Europe, North America, the Middle East and Asia, serving more than 6,000 customers worldwide.
Its portfolio spans three main segments: Coatings & Construction Solutions, Adhesive Solutions, and Health & Protection and Performance Materials. Synthomer holds a leading position in water-based polymers used in medical gloves and is also a major European producer of binders, foams and related materials. Around 20% of its sales volumes come from new or patented products. The company’s decarbonisation targets for 2030 have been approved by the Science Based Targets initiative, supporting its positioning as a sustainability-focused technology provider recognised by the London Stock Exchange’s Green Economy Mark.
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