This report does not constitute a rating action. Competitive pressure and cost inflation will limit revenue and EBITDA margin growth. Ongoing competition from Chinese polyamide 6 (PA6) exports into Europe, limited pricing power in several end markets, and energy and sulfur costs nearly doubling since 2025 will likely constrain Envalior's (B-/Stable) earnings. These challenges offset resilient demand in selected specialty materials and performance materials applications. For 2026, we forecast revenue to grow 1%-2%. Price increases will only partly offset higher input costs; as such, we expect EBITDA margins of about 13.3%--slightly below the 2025 level. For 2027, we expect about 1% revenue growth as electric vehicle (EV) adoption and polymer content per vehicle both increase. EBITDA in 2027 will benefit
