Specialty chemicals company LANXESS reported a subdued start to FY26, impacted by weak economic conditions, geopolitical uncertainty and the impact of portfolio divestments, while confirming its full-year earnings guidance.

The company reported sales of EUR 1.378 billion in Q1 FY26, down 13.9 per cent from EUR 1.601 billion in the corresponding quarter last year. EBITDA pre exceptionals declined 29.3 per cent to EUR 94 million from EUR 133 million, while EBITDA margin pre exceptionals narrowed to 6.8 per cent from 8.3 per cent.

LANXESS said lower raw material costs, pricing pressure from Asian markets, exchange-rate movements and the sale of its Urethane Systems business affected performance.

“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,” said Matthias Zachert, CEO of LANXESS.

The company expects Q2 EBITDA pre exceptionals to improve to EUR 130–150 million and maintain its FY26 guidance of EUR 450–550 million.

Consumer Protection sales declined 10.7 per cent to EUR 458 million, while Speciality Additives sales fell 4.4 per cent to EUR 521 million. Advanced Intermediates recorded the sharpest decline, with sales down 16.8 per cent to EUR 396 million amid weaker demand and lower capacity utilisation.

Net income widened to a loss of EUR 141 million compared to a loss of EUR 57 million a year earlier. Net financial liabilities stood at EUR 2.085 billion as of 31 March 2026.