...November 14, 2025 This report does not constitute a rating action. Despite challenging and uncertain market conditions, we project Envalior's adjusted EBITDA margin will improve to 13.7% in 2025 from 13.0% in 2024. Over the first half of 2025, the group experienced a revenue decline of 2.8%, driven by weakened market conditions in Europe and North America amid lower demand and ongoing uncertainty regarding tariffs. Asia performed better, supported by robust demand in the Indian and Chinese markets. While volume levels remained stable across all business divisions, tariffs are putting pressure on polyamide PA6 and PA66 prices in Europe. Notably, despite the negative top-line performance, the EBITDA margin improved to 12.2%, up from 11.3% in first-half 2024. This was supported by the group phasing out double running costs associated with the carve-out process and the full integration of legacy businesses--DSM Engineering Materials and Lanxess High Performance Materials--into Envalior, resulting...
