Specialty chemicals company LANXESS has reported a difficult financial year for 2025, citing weak global demand, geopolitical uncertainty, and sustained pricing pressure as key factors impacting performance. The company recorded revenue of EUR 5.673 billion, representing a decline of 10.9 percent compared to the previous year. EBITDA pre-exceptionals also fell by 16.9 percent to EUR 510 million, with margins narrowing to 9.0 percent.
The downturn was driven by reduced sales volumes across most customer industries, alongside lower selling prices influenced by declining raw material costs and increased competitive pressure, particularly from Asian markets. The absence of earnings from the Urethane Systems business unit, divested in April 2025, and adverse currency movements further weighed on results.
Despite the challenging environment, the company has outlined a focused strategy aimed at stabilising performance and improving efficiency. For 2026, LANXESS expects EBITDA pre-exceptionals to range between EUR 450 million and EUR 550 million, with a potential recovery anticipated in the latter half of the year.
As part of its response, the company is implementing additional cost-saving measures designed to deliver annual savings of approximately EUR 100 million by 2028. This initiative includes workforce adjustments of around 550 roles, primarily in administrative functions, with a majority of reductions planned in Germany. The company has stated that these changes will be carried out through natural attrition and demographic transitions.
These measures build on earlier production network optimisations announced in 2025, which are expected to generate further savings of around EUR 50 million annually. Combined with the ongoing “FORWARD!” action plan, LANXESS is targeting total structural savings of approximately EUR 150 million by the end of 2028.
In the short term, the company is also taking steps to reduce labour costs, including adjustments to working hours and compensation policies across different employee groups. On the financial front, LANXESS has strengthened its balance sheet by reducing net financial liabilities to EUR 2.023 billion, supported in part by proceeds from recent divestments.
Segment performance remained mixed. While the Consumer Protection division maintained stable earnings supported by cost controls, other segments such as Specialty Additives and Advanced Intermediates experienced declines due to lower utilisation rates and continued market pressure. Looking ahead, LANXESS remains focused on disciplined execution, operational efficiency, and identifying new growth opportunities to navigate ongoing market challenges and position itself for recovery.
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).
