Abigail Eberts

Abigail Eberts inquired about Westlake's expectations for the cost side in PEM, specifically if higher polyethylene pricing in 2026 would lead to integrated margins being down double digits, and if their February polyethylene price increase of $0.05 was in line with peers.

Answer

Steve Bender, Executive Vice President and Chief Financial Officer, Westlake Corporation, acknowledged elevated ethylene pricing due to volatile ethane. He noted a $0.05 polyethylene price recognition in January, which offset a December reset, and confirmed an announced February increase of $0.05, stating they would monitor how the market plays through.

Abigail Eberts asked about PEM's cost side expectations, specifically if higher polyethylene pricing in 2026, alongside potentially double-digit integrated margin declines, was in line with Westlake's view. She also inquired if the February price increase was around $0.05, consistent with peers.

Answer

Steve Bender, Executive Vice President and Chief Financial Officer, noted elevated ethylene pricing and volatile ethane. He mentioned a $0.05 polyethylene price increase in January, which offset a December reset, and confirmed an additional $0.05 increase announced for February, stating they would monitor market developments.

Abigail Eberts sought clarification on Linde's pricing expectations for the Americas and APAC regions for the upcoming year.

Answer

Matt White, CFO, stated that pricing expectations remain consistent with the globally weighted CPI. He highlighted Linde's consistent track record of positive pricing for 25 years and expects this trend to continue for the current year, even with impacts from helium and China's deflationary conditions.

Abigail Eberts asked for clarification on Linde's pricing expectations for the Americas and APAC regions for the upcoming year.

Answer

Matt White, CFO, stated that pricing expectations remain consistent with Linde's long-standing view of aligning with globally weighted CPI. He highlighted Linde's consistent track record of positive pricing for 25 years, which is expected to continue in the current year.

Abigail Eberts asked about Albemarle's expectations for underlying EV demand looking into next year.

Answer

Eric Norris, Chief Commercial Officer, reiterated the long-term forecast of 2.5x market growth by 2030, with EVs driving close to 70% of lithium demand. He highlighted strong, albeit slowing percentage growth, in China due to competitive costs and vehicle choice. Europe is encouraged by emission targets, while the U.S. remains the most difficult to predict due to policy, despite favorable technology trends.

Abigail Eberts asked about Albemarle's expectations for underlying EV demand looking into next year.

Answer

Chief Commercial Officer Eric Norris reiterated the long-term forecast of 2.5x total market consumption growth by 2030, with EVs driving close to 70% of lithium demand. He highlighted strong, cost-competitive demand in China (over 50% penetration), continued encouragement in Europe due to emission targets, and the U.S. as the most difficult-to-predict market (10% of EV demand) due to policy uncertainties, despite favorable cost trends.

Abigail Eberts inquired about the strong growth in the fine fragrance business (20% this quarter, double-digit last quarter), asking about underlying trends, expected future growth levels, and the outlook for the next quarter and first half of 2026.

Answer

CEO Erik Fyrwald stated that while he doesn't expect the same strong growth rates to continue, he anticipates continued solid growth from fine fragrances. He attributed this to IFF's capabilities, including great perfumers, molecules, significantly enhanced innovation investment (coming more in 2026-2027), and investments in creative centers globally. He also highlighted the dynamic of social media and influencers expanding the marketplace to new generations, genders, and diverse groups, fueling continued growth.

Abigail Eberts asked for further insight into the strong, double-digit growth in fine fragrance, inquiring about underlying trends driving it, whether this growth level is sustainable, and the outlook for Q4 2025 and H1 2026 given future innovation investments.

Answer

CEO Erik Fyrwald stated that while he doesn't expect the same strong growth rates going forward, he anticipates continued solid growth from fine fragrances due to IFF's capabilities (perfumers, molecules), enhanced innovation investment coming in 2026-2027, and investments in creative centers globally. He also attributed growth to the social media dynamic, which expands the marketplace to new generations, genders, and diverse groups, fueling continued growth.

Abigail Eberts asked about the competitive pressures in China for the Advanced Polymer Technologies (APT) segment and whether the company could recoup pricing. She also questioned if raw material sourcing for other segments was as insulated from tariffs as Performance Chemicals.

Answer

CEO David Li acknowledged the competitive environment in China but expressed confidence in the company's differentiated technology and the new leadership in the APT segment. He also confirmed that, from a supply chain perspective, all business segments have minimal exposure to tariffs due to established local-for-local sourcing strategies, resulting in no major concerns.

Abigail Eberts asked about the long-term EBITDA margin outlook for the Performance Materials segment, particularly in a more volume growth-oriented environment, beyond the 2025 guidance.

Answer

Interim CEO Luis Fernandez-Moreno clarified that the company expects Performance Materials to deliver 50% EBITDA margins in 2025, supported by favorable vehicle mix trends and productivity gains. He projected that longer-term, margins could settle in the high 40s due to potential new competition in China post-2028, but the near-term outlook remains strong.