In fiscal year 2024, LANXESS AG reported a significant increase in earnings despite ongoing global economic challenges. Earnings before interest, taxes, depreciation, and amortization (EBITDA) pre exceptionals rose by 19.9 percent to EUR 614 million, compared to EUR 512 million in the previous year. This performance confirms the preliminary figures released on January 20, 2025.
The increase in earnings was primarily driven by improved capacity utilization and substantial cost reductions achieved through the company’s “FORWARD!” action plan. Although most business units reported higher sales volumes, overall Group sales declined by 5.2 percent to EUR 6.366 billion (2023: EUR 6.714 billion), largely due to lower sales prices resulting from reduced raw material and energy costs. The EBITDA margin pre exceptionals improved from 7.6 percent to 9.6 percent.
Commenting on the results, Matthias Zachert, Chairman of the Board of Management, stated: “We have increased our earnings through internal measures despite macroeconomic and geopolitical pressures. This demonstrates the effectiveness of our structural initiatives, which will continue to support our performance in the coming year. We remain optimistic about achieving further growth by 2025, even in the absence of a broad recovery in global demand.”
For fiscal year 2025, LANXESS anticipates continued economic uncertainty. Nonetheless, the Group forecasts a portfolio-adjusted EBITDA pre exceptionals increase of approximately 10 percent year-on-year. This equates to a reported EBITDA pre exceptionals of between EUR 600 million and EUR 650 million, reflecting the expected divestiture of the Urethane Systems business in April 2025.
The unit contributed approximately EUR 50 million to EBITDA pre exceptionals in 2024 and will be included only for the first quarter of 2025. For the first quarter of 2025, LANXESS expects EBITDA pre exceptionals to exceed the prior-year quarter by 25 to 35 percent.
In 2024, the Group reduced its net financial debt by 4.7 percent, from EUR 2.498 billion to EUR 2.381 billion, primarily through strong cash flow generation from operations. Free cash flow reached EUR 188 million.
Through the “FORWARD!” action plan launched in mid-2023, LANXESS aims to reduce annual costs by EUR 150 million by 2025. The company already achieved EUR 110 million in savings during 2024—EUR 20 million more than originally projected.
The Board of Management and Supervisory Board will propose a stable dividend of EUR 0.10 per share for fiscal year 2024 at the Annual Stockholders’ Meeting on May 22, 2025, aligning with the company’s strategy to continue reducing net financial debt. The proposed distribution represents a total dividend payout of approximately EUR 9 million.
In October 2024, LANXESS signed a definitive agreement to sell its Urethane Systems business to UBE Corporation of Japan. The transaction is expected to close in April 2025. The divestment includes five production sites and approximately 400 employees worldwide. With the sale, LANXESS completes its transformation into a pure-play specialty chemicals company. Proceeds from the transaction will be directed toward further debt reduction.
