Synthomer plc (LSE:SYNT) reported a robust trading performance during the first half of 2026, with increases in volume, revenue, EBITDA and margins across its continuing operations.
The improvement was driven by stronger activity within the Coatings & Construction Solutions division and resilient performance from Adhesive Solutions. The company also cited healthy end-market demand, targeted growth investments and ongoing cost-saving initiatives as key contributors to the positive performance.
While Health & Protection and Performance Materials experienced a slower start to the year, management noted that volumes strengthened as the period progressed.
Second-Quarter Momentum Builds
Trading conditions improved further during the second quarter, with Synthomer successfully managing supply chain disruption linked to the conflict involving Iran.
The company utilised its global manufacturing network and procurement capabilities to maintain supply and mitigate operational challenges. Higher raw material and energy costs were largely passed through to customers, helping to protect profitability despite a more volatile cost environment.
Management highlighted the flexibility of the group’s regional production footprint as an important competitive advantage during periods of market disruption.
Balance Sheet Strengthened Through Refinancing
Synthomer also completed a refinancing of its bank debt facilities, improving liquidity and increasing covenant headroom.
The enhanced financial flexibility supports the company’s ongoing transformation programme, which remains focused on reducing leverage, streamlining operations and concentrating resources on higher-growth areas of the business.
As part of this strategy, Synthomer continues to progress the disposal of non-core assets, including the recently announced sale of its Acrylate Monomers business.
Management believes these actions will further strengthen the balance sheet while simplifying the group’s portfolio and improving strategic focus.
Outlook
Despite the strong operational performance reported in the first half, Synthomer’s longer-term outlook remains influenced by the impact of historical losses and uneven revenue trends experienced over recent years.
However, balance sheet leverage has improved, and the company benefited from stronger cash flow generation during 2025, providing additional support for its transformation plans.
Technical indicators remain a notable positive, with the shares trading above key moving averages and momentum measures such as MACD remaining supportive. Nevertheless, overbought signals suggest the potential for short-term share price volatility.
Valuation remains constrained by a negative price-to-earnings ratio, reflecting the company’s recent earnings profile. Management believes that continued operational improvements, portfolio simplification and debt reduction should support further progress over time.
More about Synthomer
Synthomer plc is a London-listed manufacturer of specialised polymers and performance ingredients serving customers across the coatings, construction, adhesives, healthcare and protection sectors.
The group operates through three divisions: Coatings & Construction Solutions, Adhesive Solutions, and Health & Protection and Performance Materials. Its products are supplied to more than 6,000 customers worldwide through a network of 29 manufacturing facilities.
By focusing on high-performance and specialised applications, Synthomer aims to provide innovative materials that support a broad range of industrial and consumer end markets while driving long-term value creation through operational excellence and portfolio optimisation.
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