Synthomer plc (LSE:SYNT) said it expects 2025 revenue from continuing operations of around £1.74bn, with EBITDA in the range of £135m–£138m, broadly in line with expectations but slightly below 2024 levels, as softer demand following global tariff changes weighed on volumes. The impact was largely mitigated by cost-reduction initiatives and a greater emphasis on higher-margin speciality solutions.
The group delivered positive free cash flow during the year and reduced net debt to approximately £575m, while covenant leverage remained comfortably within agreed limits. Margin improvement was reported across the portfolio, supported by continued progress in Adhesive Solutions, a recovery in medical glove volumes, and ongoing divestments aimed at simplifying the business and accelerating deleveraging. Management said these actions leave the group better positioned for earnings growth in 2026, even if end-market conditions remain subdued.
Despite these operational improvements, the outlook still reflects material financial headwinds, including negative profitability and elevated leverage, which continue to weigh on valuation metrics. Technical indicators are mixed, showing some near-term positive momentum against a weaker longer-term trend. Offsetting this, recent corporate developments, including insider share purchases and strategic leadership appointments, provide a measure of longer-term encouragement.
More about Synthomer
Synthomer plc is a London-listed supplier of high-performance, specialised polymers and ingredients used across coatings, construction, adhesives, and health and protection markets. The group employs around 3,800 people and operates five innovation centres and 29 manufacturing sites spanning Europe, North America, the Middle East and Asia, serving more than 6,000 blue-chip customers. Its activities are organised into three divisions—Coatings & Construction Solutions, Adhesive Solutions, and Health & Protection and Performance Materials—targeting structurally supported end markets such as urbanisation, demographic change, climate transition and sustainability.
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