Polynt Group : The outlook remains blurry, but liquidity is strong across all actors

Commodity chemical players reported a weak set of Q1 results, with profitability suffering more compared to Specialty chemical players, as expected. The remaining part of 2025 and 2026 are expected to remain tough amid weak economic growth in Europe, tariffs in the US, and capacity additions in the US, although some external factors (government programs, lower interest rates) could boost earnings. While commodity players such as IGH and IQ will continue to suffer from the weak operating environment, their low-cost base and strong liquidity position (for now) provide sufficient cushion to navigate the storm. Polynt, on the other hand, should continue to generate positive FCF supported by healthy and strong EBITDA margins.