Story
Synthomer Lifts 2026 Outlook on Strong First-Half Revenue Growth
UK speciality polymers supplier Synthomer upgraded its full-year 2026 outlook on Tuesday after reporting a 6.7% year-over-year increase in first-half revenue and a return to adjusted profitability. The company said growth was driven by strategic initiatives and a focus on higher-margin products.
First-Half Performance
Synthomer posted first-half revenue of £954.30 million, with growth recorded across all its divisions. The company's financial results significantly outperformed analyst expectations.
Key figures for the first half include:
- Adjusted earnings per share (EPS) reached £0.22, turning positive from a loss in the prior-year period and beating a consensus analyst estimate of £0.05.
- Adjusted pretax profit came in at £12.70 million, ahead of the £11 million estimate.
- Adjusted EBITDA was reported at £96.70 million.
On a statutory basis, the company recorded a pretax loss of £25.50 million and a basic loss per share of £0.03. Free cash flow for the period was negative £80.80 million.
Upgraded Outlook
AdFollowing the strong first-half results, Synthomer raised its guidance for the full year. The company now expects its 2026 results to be slightly ahead of market expectations.
Synthomer also anticipates that its full-year free cash flow, before non-recourse receivables finance movements, will be positive. The company forecasts its year-end 2026 covenant net debt to EBITDA ratio will be between 4.0 and 4.35 times, excluding any further divestments.
Business Drivers and Context
According to the company, the improved underlying earnings were the result of strategic growth initiatives, innovation, and a successful shift toward higher-margin speciality products. Margin improvements were also supported by ongoing cost and efficiency programs.
Synthomer noted that its Health & Protection division saw temporary volume gains due to supply chain disruptions at competitors. The company stated that it does not expect these specific gains to continue into the second half of the year.
Read next
More on Stocks
FTC Orders Walmart, Uber, Delta to Disclose Data on Personalized Pricing
The U.S. Federal Trade Commission is demanding nine major companies, including leading retail, travel, and gig economy firms, to provide information on how they use consumer data for setting individual prices and wages.
Google Launches Gemini 4 Carbon AI Model to Bolster Cybersecurity Capabilities
Alphabet's Google has unveiled Gemini 4 Carbon, its latest AI model specifically designed for advanced cybersecurity tasks like vulnerability detection and secure code generation. The launch escalates competition with rivals OpenAI and Anthropic in the enterprise AI market.
Oracle Shares Surge After Unveiling $225 Billion Revenue Target for 2030
Oracle stock rose sharply after the company presented a long-term financial outlook targeting at least $225 billion in annual revenue by fiscal 2030, driven by its expanding AI infrastructure business.
DOJ Scrutinizes Nvidia's $12.9B Hugging Face Deal Amid Broader Antitrust Probe, Sources Say
The U.S. Department of Justice is reportedly examining Nvidia's planned $12.93 billion acquisition of AI platform Hugging Face as part of a wider, ongoing antitrust investigation into the chipmaker's market conduct.