IMCD NV (IMCDY) (Q3 2026) Earnings Call Highlights: Organic Growth Accelerates to 10% as EBITA ...

Negative Points

• The Americas segment performance was disappointing, with a weak first quarter of 2026 showing a 25% organic EBITA decline, and only modest recovery in subsequent quarters.

• Organic gross profit growth in EMEA was relatively low in Q3, partly due to tougher comparatives and timing of mandate wins.

• Pricing behavior has normalized with more stable but lower price increases, and some product lines face pricing pressure, potentially limiting margin expansion.

• Operating costs were slightly higher in Q3, partly due to bonus accruals, which could pressure margins if performance-related costs continue to rise.

• Chinese competition remains a factor in Latin America and other markets, though no dramatic change was seen between Q2 and Q3, it continues to pose a challenge.

Q & A Highlights

Q: Anil Shenoy of Barclays asked whether IMCD's historical 6%-7% organic gross profit growth guidance remains achievable over the medium to long term, and how the company views its M&A pipeline given leverage has fallen to 2.6x versus a 3x target. A: CEO Marcus Jordan said he remains comfortable with the historical 6%-7% organic gross profit growth guidance, noting industry drivers such as consolidation, outsourcing and supplier rationalization remain intact, with scale also supporting conversion margin expansion. On M&A, he said the company has healthy firepower and a healthy pipeline, though some discussions are taking longer than in the past; IMCD remains laser-focused on targets with a strong strategic fit that can accelerate long-term organic growth rather than rushing to close deals.

Q: Matthew Yates of Bank of America asked about IMCD's internal impairment testing process, whether any past deals need assumptions revisited, and any learnings for screening or integrating targets, referencing Azelis' large write-down. He also asked about headcount and cost trends and whether digital initiatives can drive operating leverage. A: CFO Hans Kooijmans said the process is simple: immediate action on any triggering event, quarterly internal reviews, and a formal annual process using current-year estimates, next year's budget, two planned years and terminal growth rates. Based on preliminary results, no impairments are expected; he said IMCD uses a more conservative pre-tax WACC and terminal growth rates than most peers and is disciplined on purchase prices. Net-net, acquired companies have performed positively despite some volatility. CEO Marcus Jordan added that IMCD remains cautious on near-term headcount additions but will invest in frontline commercial teams and AI to improve operational excellence and customer service, with efficiency gains expected more over the longer term.

Q: Suhasini Varanasi of Goldman Sachs asked whether organic gross profit growth changed materially through the quarter or in September/October, how the order book looks for the next four weeks, and about Americas momentum, including US versus LatAm and specific verticals dragging. A: CEO Marcus Jordan said there was nothing material to report on organic gross profit growth or order patterns through the quarter, reiterating a promising start to Q4. On the Americas, he acknowledged the region needs improvement but said he is extremely pleased with recent management team changes and is cautiously optimistic. He noted the region has historically performed very well and often outperformed EMEA and APAC, so there is a comp effect; North America has more industrial exposure in coatings and construction where demand is weaker, while LatAm is more volatile.

Q: Annelies Vermeulen of Morgan Stanley asked about pricing through Q3 and whether it could pick up into Q4 and next year given oil and input cost volatility, and whether just-in-time customer behavior will persist or shift next year. She also asked about cost implications of more frequent, smaller orders. A: CEO Marcus Jordan said pricing has returned to more normal behavior, with some suppliers still pushing increases but generally much more stable; he would not be surprised if suppliers push additional pricing at the start of the new year given relatively high crude prices. Customer order frequency and quantities have not changed materially, and just-in-time deliveries may persist long term, which IMCD welcomes as part of its service offering. He said the global ERP platform provides instant cost visibility, allowing IMCD to pass through higher relative freight costs on smaller orders.

Q: Nicole Manion of UBS asked whether more investment is required in the Americas heading into next year and which areas need upgrading, and whether the Q2 dynamic of gaining share in semi-specialties as Asian supply became less secure continued in Q3 or normalized. A: CEO Marcus Jordan said no specific additional investments are required in the Americas; the focus is on strengthening commercial excellence. On semi-specialties, he said it is a relatively small part of the portfolio and there is nothing specific to report, adding that conditions were stable between Q2 and Q3, with Chinese competition definitely present but no significant change between the two quarters.

Q: Luuk Van Beek of Degroof Petercam asked what drove the strong Asia Pacific performance and what factors increased operating costs in Q3, including any bonus accrual impact. A: CEO Marcus Jordan said APAC's strength was fairly consistent country by country, driven by good commercial and operational execution and good demand rather than anything specific. On costs, he said IMCD rewards employees for good performance, implying a bonus accrual difference versus last year. CFO Hans Kooijmans said the impact is difficult to quantify but not substantial; year-to-date own cost increase was a very low single-digit number, and the conversion margin improved year-to-date and in the quarter. He noted bonus pools build during the year, whereas last year saw releases due to disappointing outcomes.

Q: David Kerstens of Jefferies asked about the pharma business, noting the wording shifted from "green shoots" to "resilient," and about developments at Signet in India and APAC's stronger gross profit and EBITA growth in Q3. A: CEO Marcus Jordan said pharma is one of IMCD's most consistent segments, having had a bumpy ride at the end of last year due to tariffs, but it has returned to its normal level of performance and traditional growth, including the Signet business.

Q: Quirijn Mulder of ING asked how the US coast-to-coast strategy is progressing and when first benefits will appear, and about the competitive environment in Latin America, including aggressive Chinese selling. A: CEO Marcus Jordan said coast-to-coast developments are already visible internally, with a significantly increasing number of suppliers represented coast-to-coast; in some cases IMCD must part ways with suppliers not suited to a coast-to-coast relationship, causing some timing impacts. He is pleased with traction but could not specify exactly when numbers will come through. On LatAm, he said there is Chinese competition but no dramatic change between Q2 and Q3.

Q: David Kerstens of Jefferies asked whether EMEA's relatively low Q3 momentum was mainly due to a tougher comp, how mandate wins developed in Q3, and whether more normal pricing means prices are coming down from recent highs. A: CEO Marcus Jordan said EMEA performance was driven by good performance across most countries, with mandate wins contributing but not dominating. On pricing, he clarified that "normal" refers to stability and an absence of dramatic swings, not price declines; specialty portfolio pricing remains robust, no general price reductions have been seen in recent quarters, and some product lines are still moving upward on a product-by-product basis.

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For the complete transcript of the earnings call, please refer to the full earnings call transcript .