Envalior's performance has improved after bottoming out in 2023, but its recovery in 2024 fell short of our expectation, mainly due to subdued demand in the key automotive markets and the still loss-making intermediates segment. We now estimate S&P Global Ratings-adjusted EBITDA will reach about €310 million in 2024, below our previous forecast of €350 million-€400 million. This will lead to still elevated adjusted debt to EBITDA of 12.5x-13.0x (about 12x excluding preferred equity certificates [PECs]) in 2024. Unadjusted free operating cash flow (FOCF) will be negative €55 million-€65 million given high interest costs. Although market conditions are likely to remain challenging in 2025, continual realization of integration synergies will support Envalior's EBITDA growth in 2025-2026. We also expect the
