LANXESS Confirms Guidance Despite Subdued Start To The Year

Mumbai (Maharashtra) [India], June 24: A persistently weak economic environment, ongoing geopolitical uncertainties, and prior year’s portfolio divestments characterized the first quarter of the 2026 financial year for specialty chemicals company LANXESS. Sales amounted to EUR 1.378 billion, which was 13.9 percent below the sales of EUR 1.601 billion in the same quarter of the previous year. EBITDA pre exceptionals reached EUR 94 million, down 29.3 percent from the EUR 133 million recorded in the same quarter of the previous year. The EBITDA margin pre exceptionals for the first quarter was 6.8 percent, compared with 8.3 percent in the same quarter of the previous year.

In a market environment that remained weak, lower input prices for raw materials and persistent price pressure from the Asian region in some businesses led to lower selling prices. Furthermore, exchange rate movements and the portfolio effect resulting from the sale of the Urethane Systems business as of April 1, 2025, had a negative impact on the results.

“The start of the year was weak, but since March we have seen a slight positive momentum. Due to the conflict in the Middle East, the supply chains of many Asian competitors have been disrupted, causing customers to turn back to European suppliers such as LANXESS. Supply capability is currently a significant competitive advantage. At the same time, we have raised prices for many of our products to pass on the increased costs of raw materials, energy, and logistics,” said Matthias Zachert, CEO of LANXESS.

Guidance for 2026 Confirmed

LANXESS expects these market conditions to persist for at least the coming months and anticipates its EBITDA pre exceptionals in the second quarter of 2026 to be significantly higher than in the first quarter, reaching a range of EUR 130 million to EUR 150 million.

For the full year 2026, the Group confirms its March guidance and continues to expect EBITDA pre exceptionals of between EUR 450 million and EUR 550 million.

Business Performance in the Segments

In the Consumer Protection segment, LANXESS generated sales of EUR 458 million in the first quarter of 2026, representing a decline of 10.7 percent compared to the same quarter last year, which saw sales of EUR 513 million. At EUR 62 million, EBITDA pre exceptionals was 15.1 percent below the figure for the same quarter of the previous year of EUR 73 million. In particular, weaker demand and the associated lower sales volumes, as well as adverse exchange rate effects, led to a decline in earnings. In the previous year, earnings had included a high single-digit million-euro amount from an insurance reimbursement. The EBITDA margin pre exceptionals was at 13.5 percent, compared to 14.2 percent in the same period last year.

The Specialty Additives segment recorded sales of EUR 521 million in the first quarter, which is 4.4 percent below the EUR 545 million figure from the first quarter of 2025. EBITDA pre exceptionals reached EUR 44 million, 15.4 percent below EUR 52 million reported in the same quarter of the previous year. Adverse exchange rate effects and lower purchase prices for raw materials, which were reflected in lower selling prices, led to the decline in earnings. Increased demand for lubricants and bromine-based flame retardants did not offset the decline. The EBITDA margin pre exceptionals was 8.4 percent, compared with 9.5 percent in the same quarter of the previous year.

In the Advanced Intermediates segment, sales declined to EUR 396 million in the first quarter of 2026, a 16.8 percent decrease from the EUR 476 million recorded in the same quarter of the previous year. EBITDA pre exceptionals reached EUR 27 million, down 32.5 percent from EUR 40 million in the same period of the previous year. Overall weak demand and the resulting lower capacity utilization, as well as reduced sales volumes negatively impacted earnings and margins. The EBITDA margin pre exceptionals fell to 6.8 percent, down from 8.4 percent in the previous year.