Croda shares surged about 5% in London after the specialty chemicals maker reported stronger-than-expected 2025 profit growth, driven by robust gains in its Consumer Care and Life Sciences divisions. Group sales climbed to £1.70 billion, up 6.6% at constant currency, fueled by a 9.6% increase in volumes. Adjusted operating profit rose 7.9% to £295.3 million, with the operating margin improving slightly to 17.4%. The company also raised its full-year dividend by 1p to 111p and expects organic sales growth within its 3–6% target range for 2026, while forecasting a further margin expansion.

Consumer Care sales rose 7.9% at constant currency to £972.7 million, with adjusted operating profit jumping to £169.8 million. Life Sciences delivered similar momentum, with sales up 7.7% and adjusted operating profit rising to £116.5 million. However, Industrial Specialties remained weaker, with adjusted operating profit falling to £9.0 million. Free cash flow came in at £161.6 million, slightly below the prior year, but net debt declined to £523.8 million, improving the leverage ratio to 1.3x EBITDA.

CEO Steve Foots expressed encouragement over the progress in 2025, stating the results demonstrate the company is delivering on its plan to grow earnings and improve returns in an uncertain environment. Croda reaffirmed its long-term ambition to exceed a 20% adjusted operating margin by 2028, signaling sustained focus on margin expansion beyond the near-term targets.