The continuing weak global economy and heightened geopolitical tensions affected the third-quarter performance of specialty chemicals company LANXESS in 2025. The company reported sales of EUR 1.338 billion, a decline of 16.3 percent from EUR 1.598 billion in the same period last year.
EBITDA before exceptional items stood at EUR 125 million, down 27.7 percent from EUR 173 million a year earlier. The decrease was driven mainly by subdued demand across key industries, resulting in lower sales volumes. The divestment of the Urethane Systems business unit on April 1, 2025, whose results are no longer consolidated, along with adverse currency movements, also contributed to the weaker performance. As a result, the EBITDA margin before exceptional items fell to 9.3 percent, compared with 10.8 percent in the prior year’s quarter.
Commenting on the results, Matthias Zachert, CEO of LANXESS, said the prolonged demand slowdown continues to affect the broader chemical industry, including the company’s core markets. “The situation is particularly challenging in construction, automotive and agrochemicals. We currently see no signs of an imminent recovery and expect these conditions to persist well into next year,” he said. Zachert emphasized that the company is focused on actions within its control, including reducing costs, streamlining structures and improving its market position. He also underscored the need for stronger political support from Berlin and Brussels to shore up the industry’s competitiveness, warning that entire value chains could be at risk without timely intervention.
LANXESS has updated its outlook for the full year 2025 and now expects EBITDA before exceptional items to be at the lower end of the previously announced EUR 520 to 580 million range. The company continues to implement its “FORWARD!” action plan launched in 2023, which is on track to deliver permanent annual savings of around EUR 150 million by the end of 2025.
Earlier this year, LANXESS announced further optimizations across its production network that are expected to generate an additional EUR 50 million in annual savings by 2027. The company is now preparing further measures with an estimated savings potential of around EUR 100 million, details of which will be communicated in the first quarter of 2026.
Despite the challenging environment, LANXESS maintained stable net financial debt through strict cash management, reporting EUR 2.072 billion in net liabilities at the end of the third quarter, compared with EUR 2.069 billion at the end of the second quarter. In terms of business performance, the Consumer Protection segment recorded sales of EUR 453 million, a 13.1 percent decline from EUR 521 million in the previous year.
EBITDA before exceptional items rose slightly to EUR 72 million from EUR 71 million, supported by cost savings under the “FORWARD!” program. The EBITDA margin improved to 15.9 percent from 13.6 percent. The Specialty Additives segment posted sales of EUR 505 million, down 8.2 percent from EUR 550 million last year, while EBITDA before exceptional items fell 26.2 percent to EUR 45 million.
The EBITDA margin decreased to 8.9 percent from 11.1 percent due to lower capacity utilization and weak demand. The Advanced Intermediates segment reported sales of EUR 377 million, a 17.1 percent decline from EUR 455 million in the prior year. EBITDA before exceptional items dropped sharply to EUR 26 million from EUR 68 million, affected by persistent price pressure from Asia, soft demand and reduced utilization rates, leading to a margin decline to 6.9 percent from 14.9 percent.
LANXESS continues to prioritise cost discipline, operational efficiency and long-term competitiveness as it navigates the prolonged market downturn. LANXESS, a leading specialty chemicals provider with a revenue of EUR 6.7 billion in 2023, operates in 32 countries and employs around 12,600 people. The company focuses on the development, production, and marketing of chemical intermediates, additives, and consumer protection products. LANXESS is also featured in the prestigious sustainability indices of the Dow Jones Sustainability Index (DJSI World and Europe).
