Univar Solutions Inc.’s subsidiary, Univar B.V., announced the expansion of its distribution deal with Calumet Specialty Products for the latter’s range of naphthenic and paraffinic base oils throughout Europe. Univar customers across Europe can now access more Calumet products with a wide range of viscosity and solvency characteristics across the lubricants, greases, metalworking fluids and adhesives markets.

The new agreement expands upon a current relationship built around white oil and petrolatum product portfolios throughout Europe and North America. It includes the premium brands Calpar, Hydrocal and Calsol. Univar can now deliver a wide range of specialty base oils for the lubricants and metalworking fluids markets while providing Calumet a reliable, technical-focused and market-leading partner.

Univar stated that it is excited to broaden its longstanding, valued relationship with Calumet to provide customers with lubricants and metalworking fluids with more access to packed and bulk naphthenic base oils. Its product portfolio includes a wide range of specialty components and additives as well as mineral and synthetic base oils and solvents, which will help customers meet demand and develop next-generation products, the company noted.

Shares of Univar have dropped 0.3% in the past year against a 13.3% decline of the industry.

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In its last earnings call, Univar stated that it expects adjusted EBITDA for second-quarter 2022 to be $270-$290 million. For 2022, adjusted EBITDA is projected to be $1,000-$1,050 million. The guidance considers anticipated continued strong business conditions, market share growth and benefits from net synergies from the Nexeo acquisition.

The company also projects net free cash flow for 2022 in the range of $400-$450 million.

Univar benefits from market share gains, operational execution, cost minimization and a robust liquidity position. Chemical price inflation and higher industrial demand also contribute to its top-line growth. Univar also focuses on cost-cutting, expense management and productivity actions, helping the company minimize operational costs and boost margins.

Univar Solutions Inc. Price and Consensus

 

Univar Solutions Inc. price-consensus-chart | Univar Solutions Inc. Quote

Zacks Rank & Key Picks

Univar currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the basic materials space are Albemarle Corporation (ALB Quick QuoteALB - Free Report) , Cabot Corporation (CBT Quick QuoteCBT - Free Report) and Allegheny Technologies Inc. (ATI Quick QuoteATI - Free Report) .

Albemarle has a projected earnings growth rate of 231.7% for the current year. The Zacks Consensus Estimate for ALB's current-year earnings has been revised 17.9% upward in the past 60 days.

Albemarle’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 22.5%, on average. ALB has gained around 8.9% in a year and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Cabot, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 22.5% for the current year. The Zacks Consensus Estimate for CBT's earnings for the current year has been revised 6% upward in the past 60 days.

Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 17.8% over a year.

Allegheny has a projected earnings growth rate of 1,046.2% for the current year. The Zacks Consensus Estimate for ATI’s current-year earnings has been revised 15.5% upward in the past 60 days.

Allegheny’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 128.9%. ATI has gained 12.3% in a year. The company sports a Zacks Rank #1.