Arkema Earnings: EBITDA Results Beat Consensus Across All Segments

No-moat Arkema reported first-quarter EBITDA of EUR 367 million, down 41% compared with the exceptionally high comparison base of 2022 in upstream acrylics and PVDF, but around 9% above the company’s compiled consensus. Arkema confirmed its guidance for the year and aims to achieve EBITDA of around EUR 1.5 billion to EUR 1.6 billion and maintain a high EBITDA to cash conversion rate of over 40%. Shares rose 4% intraday. We don’t expect to make a material change to our EUR 105 fair value estimate. At current levels, the shares are trading in 4-star territory.