Based on unaudited management information, INEOS Enterprises’ EBITDA before Exceptional Items (“EBITDA”) for the first quarter 2025 was €58m. This compares to an EBITDA of €81m for the first quarter 2024 and €53m in the prior quarter. The EBITDA for the continuing Chemicals business for the first quarter 2025 was €13m. This compares to an EBITDA of €31m for the first quarter 2024 and €12m for the prior quarter.
On 31 March 2025, INEOS Enterprises completed the sale of INEOS Composites to KPS Capital Partners, LP, for net consideration of c.€1.6bn. Subsequently, INEOS Enterprises used the proceeds to repay a significant portion of the Term Loan borrowings that were outstanding at that time. The remaining c.€300 million EUR Term Loan is expected to be repaid by the end of Q2 2025 following a refinancing of existing external debt, the transaction is expected to be Net Debt neutral.
Market conditions remained challenged in Q1. Weak demand across most regions and markets was combined with uncertainty surrounding the threat of tariffs from the US. Production challenges continued in the first quarter, however some of the issues were partially offset by strong margins from targeted commercial actions. In line with wider INEOS businesses, results were supported by continued liquidity and fixed cost management across the Enterprises Group.
Composites’ Q1 2025 EBITDA was €45m, compared to €50m in Q1 2024 and €41m in the prior quarter. In North America, weak volumes, partly due to an extended customer shutdown, were offset by stable margins and robust VER demand following project wins in the quarter. The impact of the threat of tariffs in the US was reflected in a reduction in demand in the US. In Europe, pricing pressure following raw material cost increases impacted results. The Rest of World regions’ demand slowed compared to prior quarters, resulting in a slight decline in volumes in the first quarter, but overall results were stable.
Pigments’ reported Q1 2025 EBITDA of €16m, compared to €26m in Q1 2024 and €24m in the prior quarter. Despite North American TiO2 demand challenges continuing to impact the US housing market, volumes increased in the quarter following a more typical seasonal uplift in demand compared to the prior quarter. In the KOH business results were heavily impacted by production challenges throughout the quarter resulting in the business running at reduced capacity, with sales volumes constrained as a result. Results in Tyssedal were supported by the phasing of shipments in Q1, however this was partially offset by FX volatility.
In Q1 2025, Solvents’ EBITDA was €2m, compared to €9m in Q1 2024 and €(14)m in the prior quarter. The result in Q1 was primarily driven by the impact of a new sales contract in the Oxy Solvents business. Results were offset by high energy prices in Europe and a globally challenged BDO market.
Chemical Intermediates reported EBITDA of €(2)m in Q1 2025 compared to €0m in Q1 2024 and €2m in the prior quarter. Results were affected by production issues in the Joliet business, which restricted sales volumes. In the Compounds business, stable market demand continued in the first quarter. The Calabrian business reported strong SO2 demand for water treatment and mining, resulting in higher volumes and strong margins.