INEOS Quattro Holdings Limited (‘INEOS Quattro’ or the ‘Group’) announces its trading performance for the second quarter of 2025.
Based on unaudited management information, INEOS Quattro reports that EBITDA for the second quarter of 2025 was €228 million, compared to €275 million for Q2, 2024 and €235 million for Q1, 2025. The second quarter results were adversely impacted by non-cash inventory holding losses of approximately €37 million as a result of the large decline in raw material and product prices in the quarter.
As of January 1, 2025, the Group changed the definition of EBITDA reported by the Group to include the equity share of EBITDA rather than profit / loss after tax of the Group’s joint ventures. This reporting is consistent with the way management review the performance of the business units in the Group. Comparative numbers have been updated to reflect this change in definition.
European markets remained structurally disadvantaged by high energy costs and carbon taxes. Americas markets were predominantly soft although certain segments benefitted from industry outages or improved demand. Asian markets remained over-supplied although some signs of improved market discipline were visible. On-going negotiations on global trade tariffs introduced another layer of uncertainty for all regions. In response to the challenging market conditions the Group has implemented and maintained a number of measures to conserve cash during this period, including policies to control all discretionary fixed costs across the businesses and a review of all capital projects to defer or reduce discretionary expenditure and scheduled turnarounds where it is safe to do so.
Styrolution reported EBITDA of €87 million compared to €109 million in Q2, 2024. Polymer sales were in line with Q1, 2025 and Q2, 2024 (excluding the recently disposed of Thailand business). Polystyrene demand remained soft in Europe and the Americas, however Asia benefitted from a strong margin uplift compared to last year. ABS sales volumes and margins continued to increase globally. In addition, Asian market discipline improved. Specialties demand remained stable with mid-cycle margins. Styrene margins peaked in the Americas and Europe due to industry outages. Inventory holding losses in Q2, 2025 were €38 million compared to gains of €13 million in Q2, 2024.
Inovyn reported EBITDA of €70 million compared to €100 million in Q2, 2024. The decline was primarily due to reduced overall sales volumes and increased energy costs, partially offset by improved general purpose PVC spreads over ethylene and stronger caustic soda pricing. Both the European general purpose PVC market and the European caustic soda market remained subdued during Q2, 2025, but multiple planned and unplanned production outages in the quarter resulted in some supply disruption. The tighter supply balance led to improved pricing on both sides of the ECU. As a result, general purpose PVC spreads over ethylene experienced modest gains compared to Q2, 2024. Contract caustic soda prices in Europe increased by 8% quarter-on-quarter. Production constraints within Inovyn led to reduced export volumes of both general purpose PVC and caustic soda. Specialty PVC sales volumes were broadly in line with Q2, 2024, but margins over ethylene deteriorated, particularly in export markets. Overall, absolute margins declined compared to Q2, 2024, impacted by lower sales volumes and higher energy costs.
Acetyls reported EBITDA of €48 million compared to €60 million in Q2, 2024. Europe continued to operate in a challenging environment impacted by weak demand and higher feedstock costs compared to the US and Asia. In Asia, new capacity in China brought further pressures onto an already well supplied market, impacting domestic margins and pricing in the regional export markets. In the US, weak demand and some customer outages led to lower sales volumes. Good plant reliability and cost control measures globally continued to provide self-help for the business.
Aromatics reported EBITDA of €23 million compared to €6 million in Q2, 2024. Revenues for the quarter were lower than Q2, 24, reflecting the lower price environment in 2025 with the feedstock reference price being 22% below the comparative quarter. Global PTA sales volumes were higher, with strong growth in the US region more than offsetting the adverse volume effect from the planned turnaround in Europe at the start of the quarter. Unit margins strengthened in the quarter as Asian PTA market spreads increased. Raw material prices fell sharply at the start of the quarter before recovering. Inventory holding gains in Q2, 2025 were €1 million compared to losses of €10 million in Q2, 2024.
Net debt was approximately €5,601 million as at June 30, 2025. Cash balances at the end of the quarter were €1,659 million. There was availability under undrawn securitization facilities of €532 million. Net debt leverage was approximately 6.9 times EBITDA at the end of June 2025.