Synthomer (LSE:SYNT) delivered a stronger first half of 2026 than expected, with revenue from continuing operations increasing 5.1% at constant currency and sales volumes rising 2.3%. Growth was recorded across all three business divisions, supported by solid demand in a range of end markets. Coatings & Construction Solutions benefited from industrial coatings used in data centres, energy projects and an improving construction sector, while Adhesive Solutions expanded through stronger sales in China and medical applications. Health & Protection achieved double-digit volume growth, supported by its strong market position and resilient supply chain.
Underlying EBITDA from continuing operations increased 16.4% to £96.7 million, with margins improving by 80 basis points. Higher profitability reflected continued innovation, cost-saving initiatives, geographic expansion and effective pricing. Underlying profit before tax also improved to £12.7 million despite higher financing costs. Management said approximately £8 million of the EBITDA improvement came from recurring strategic initiatives, while around £6 million reflected temporary benefits linked to supply disruptions caused by geopolitical conflict.
Following the stronger-than-expected first-half performance, Synthomer upgraded its outlook for 2026 and now expects full-year results to come in slightly ahead of current market forecasts. The company also anticipates generating positive free cash flow during the second half of the year and expects leverage to continue improving.
The group remains focused on increasing its exposure to higher-margin speciality products, delivering a 190-basis-point improvement in gross margin over the past year and a 600-basis-point increase over the last four years. New product development has centred on areas including intumescent coatings for data centres, drilling additives and medical adhesives. At the same time, Synthomer is continuing to simplify its portfolio through the planned sale of its Acrylate Monomers business and three additional divestments, with the aim of reducing debt, improving earnings quality and concentrating on its core speciality operations.
The company’s investment outlook continues to be influenced by a history of losses and inconsistent revenue growth, together with weak short-term technical indicators, including trading below key moving averages and a negative MACD. However, improving cash flow generation and ongoing debt reduction provide positive support. Valuation remains difficult to assess due to negative earnings and the absence of dividend yield data.
More about Synthomer
Synthomer is a London-listed manufacturer of speciality polymers and chemical ingredients used across the coatings, construction, adhesives, health and protection industries. The company operates three core business divisions, serving more than 6,000 customers through 29 manufacturing sites and five innovation centres located across Europe, North America, the Middle East and Asia.
Its portfolio focuses on high-performance polymer technologies designed to improve product performance and sustainability in applications ranging from architectural coatings and construction materials to medical products and industrial adhesives. Through its emphasis on speciality chemicals and ongoing portfolio optimisation, Synthomer aims to strengthen profitability and deliver long-term growth.
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