LANXESS Sees Recovery Only in Late 2026

24 Mar 2026 CW Team

LANXESS recently reported a challenging fiscal year 2025, impacted by weak demand across industries and continued geopolitical uncertainty. Revenue declined by 10.9 per cent to EUR 5.673 billion, while EBITDA pre-exceptionals fell by 16.9 per cent to EUR 510 million. The EBITDA margin stood at 9.0 per cent, compared to 9.6 per cent in the previous year.

The decline was driven by lower sales volumes, pricing pressure, and reduced selling prices due to softer raw material costs. The absence of earnings from the divested Urethane Systems business and adverse currency movements further affected performance.

The company expects business recovery only in the second half of 2026 at the earliest, with full-year EBITDA pre-exceptionals projected between EUR 450 million and EUR 550 million.

To improve profitability, LANXESS has initiated additional cost-saving measures targeting permanent annual savings of around EUR 100 million by 2028, including workforce reductions and administrative restructuring. Combined with earlier initiatives, total structural savings are expected to reach approximately EUR 150 million.

The company has also reduced its net financial debt by 15.0 per cent to EUR 2.023 billion, supported by proceeds from asset divestments.

Across segments, performance remained under pressure, with declines in revenue and earnings in Specialty Additives and Advanced Intermediates, while Consumer Protection maintained stable EBITDA supported by cost efficiencies."

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