03.10.25
Nouryon reported full-year 2024 results with revenue of $5.13 billion, a decrease of 1.1% year over year, and flat versus prior year excluding the negative impact of foreign currency translation.
Volume growth of 6.5%, driven by positive contributions across all regions and business units, was offset by lower pricing. The lower pricing corresponded with a year-over-year benefit from variable input costs.
Adjusted EBITDA increased by 9.5%, or $100 million, year over year to $1.16 billion, and adjusted EBITDA margins increased 220 basis points. The increases were primarily driven by higher volumes, which more than offset the combined headwinds from net pricing and negative foreign currency translation.
Net cash from operating activities and free cash flow were $968 million and $728 million, respectively, versus $996 million and $604 million, respectively, in the prior-year period. The 21% increase in free cash flow reflects a stronger earnings result, coupled with a year-over-year decline in capital expenditures due to the completion of various organic growth projects now in operation.
“Nouryon’s 2024 full-year financial performance underscores the strength of our specialty portfolio, driving significant adjusted EBITDA growth and margin expansion," said Charlie Shaver, Nouryon chairman and CEO. "Throughout the year, we achieved solid volume improvements across all business units and enhanced profitability through disciplined cost management. Having concluded 2024 with stable market conditions and positive momentum from our capex investments, we are well-positioned for continued growth in the coming year."
The Performance Materials segment contains two business units: Polymer Specialties and Paints & Coatings. The Resource Solutions segment contains two business units: Renewable Fibers and Industrials. The Industrials business unit is a renaming of our prior Natural Resources business line.
“The new segment structure enables us to accelerate our strategy and better focus on customers and end markets by prioritizing investments in innovation, capital expenditures, and acquisitions,” said Larry Ryan, Nouryon president.
Revenue in the Performance Materials segment decreased by 3% year over year to $1.7 billion, as pricing declines and foreign currency translation headwinds more than offset 5% volume growth. The lower pricing corresponded with a year-over-year benefit from variable input costs. Segment adjusted EBITDA increased 7% year over year to $372 million.
Volume in the Paints & Coatings business unit improved given increased demand relative to the customer destocking in 2023. Volume was also higher in the Polymer Specialties business unit. Segment adjusted EBITDA margin in Performance Materials segment was 21.3%, a year-over-year increase of 190 basis points.
“We delivered strong cash flows in 2024, helped by a more normalized level of capital expenditures, following three years of elevated growth investments,” said Sean Lannon, EVP and CFO at Nouryon. “Our balance sheet continues to strengthen through a blend of earnings growth and net debt reduction with both debt pay-down and cash flow. We have also been proactive in the debt markets in 2024 and early 2025, executing on multiple repricings and increasing and extending the maturity of both our securitization and revolver facilities to improve our overall liquidity profile.”
Volume growth of 6.5%, driven by positive contributions across all regions and business units, was offset by lower pricing. The lower pricing corresponded with a year-over-year benefit from variable input costs.
Adjusted EBITDA increased by 9.5%, or $100 million, year over year to $1.16 billion, and adjusted EBITDA margins increased 220 basis points. The increases were primarily driven by higher volumes, which more than offset the combined headwinds from net pricing and negative foreign currency translation.
Net cash from operating activities and free cash flow were $968 million and $728 million, respectively, versus $996 million and $604 million, respectively, in the prior-year period. The 21% increase in free cash flow reflects a stronger earnings result, coupled with a year-over-year decline in capital expenditures due to the completion of various organic growth projects now in operation.
“Nouryon’s 2024 full-year financial performance underscores the strength of our specialty portfolio, driving significant adjusted EBITDA growth and margin expansion," said Charlie Shaver, Nouryon chairman and CEO. "Throughout the year, we achieved solid volume improvements across all business units and enhanced profitability through disciplined cost management. Having concluded 2024 with stable market conditions and positive momentum from our capex investments, we are well-positioned for continued growth in the coming year."
Reorganization of the Company Segments and Business Units
During the third quarter of 2024, Nouryon reorganized into three reporting segments: Consumer & Life Sciences, Performance Materials, and Resource Solutions. The Consumer & Life Sciences segment contains two business units: Home and Personal Care (HPC) and Life Sciences which includes our former Agriculture & Food business line as well as our pharma business.The Performance Materials segment contains two business units: Polymer Specialties and Paints & Coatings. The Resource Solutions segment contains two business units: Renewable Fibers and Industrials. The Industrials business unit is a renaming of our prior Natural Resources business line.
“The new segment structure enables us to accelerate our strategy and better focus on customers and end markets by prioritizing investments in innovation, capital expenditures, and acquisitions,” said Larry Ryan, Nouryon president.
Revenue in the Performance Materials segment decreased by 3% year over year to $1.7 billion, as pricing declines and foreign currency translation headwinds more than offset 5% volume growth. The lower pricing corresponded with a year-over-year benefit from variable input costs. Segment adjusted EBITDA increased 7% year over year to $372 million.
Volume in the Paints & Coatings business unit improved given increased demand relative to the customer destocking in 2023. Volume was also higher in the Polymer Specialties business unit. Segment adjusted EBITDA margin in Performance Materials segment was 21.3%, a year-over-year increase of 190 basis points.
“We delivered strong cash flows in 2024, helped by a more normalized level of capital expenditures, following three years of elevated growth investments,” said Sean Lannon, EVP and CFO at Nouryon. “Our balance sheet continues to strengthen through a blend of earnings growth and net debt reduction with both debt pay-down and cash flow. We have also been proactive in the debt markets in 2024 and early 2025, executing on multiple repricings and increasing and extending the maturity of both our securitization and revolver facilities to improve our overall liquidity profile.”
