Specialty chemicals company LANXESS began fiscal year 2025 on a strong note, recording a 31.7% rise in operating profit (EBITDA before exceptional items), increasing from EUR 101 million to EUR 133 million. This improvement came despite ongoing global economic challenges, driven largely by better production efficiency and cost reductions under the company’s “FORWARD!” action plan.
Sales for the first quarter held steady at EUR 1.601 billion, nearly unchanged from the EUR 1.607 billion reported in the same period last year. While most business units reported higher sales volumes, lower pricing slightly weighed on total revenue.
“We’ve had a solid start to the year despite the difficult economic and geopolitical conditions,” said Matthias Zachert, Chairman of the Board of Management at LANXESS AG. “Our streamlined operations and cost-saving measures are clearly delivering results. However, the broader environment remains volatile, with added pressure from new U.S. trade policies and ongoing economic uncertainty.”
Net income for the first quarter showed improvement, reducing the loss to EUR 57 million, compared to a loss of EUR 98 million in the first quarter of 2024. LANXESS reaffirmed its full-year forecast and continues to expect operating earnings between EUR 600 million and EUR 650 million for 2025. The company also anticipates earnings to increase in the second quarter compared to Q1. However, earnings will likely be lower than the same period last year due to the absence of contributions from the recently divested Urethane Systems business.
As of April 1, 2025, LANXESS completed the sale of its Urethane Systems business to Japan-based UBE Corporation, marking the company’s exit from polymer production. This transaction is a major milestone in LANXESS’s shift toward becoming a pure-play specialty chemicals company. Proceeds from the sale will be used to repay a EUR 500 million bond maturing in May 2025, helping the company further reduce its debt.
The Consumer Protection segment delivered solid results in the first quarter of 2025, posting sales of EUR 513 million—slightly above the EUR 509 million recorded during the same period last year. This modest increase in revenue was accompanied by a significant improvement in profitability. Operating profit surged by 49% to EUR 73 million, primarily due to better capacity utilization and the impact of ongoing cost-saving measures. As a result, the EBITDA margin improved substantially, rising from 9.6% to 14.2%.
In the Specialty Additives segment, overall sales declined by 3.7%, falling to EUR 545 million from EUR 566 million in the prior year. Despite the drop in revenue, the segment saw an 8.3% increase in operating profit, which climbed to EUR 52 million. This growth was driven by strict cost control and a more favorable product mix, which helped offset the pressure from lower sales. The segment’s EBITDA margin also showed improvement, moving from 8.5% to 9.5%.
The Advanced Intermediates segment experienced steady growth, with sales increasing by 2.4% to reach EUR 476 million, compared to EUR 465 million in the first quarter of 2024. Operating profit rose by 8.1% to EUR 40 million, supported by stronger sales volumes and enhanced cost efficiency. The EBITDA margin also saw a slight increase, climbing to 8.4% from the previous year’s 8.0%.
Across all three segments, the company’s ongoing “FORWARD!” action plan played a central role in improving profitability. Cost optimization, better utilization of production capacity, and more efficient operations were key contributors to the earnings growth, even in segments where revenue remained flat or declined.
These results reflect LANXESS’s ability to manage operational challenges and focus on margin enhancement. Despite economic headwinds and price pressures in certain areas, the company’s strategic measures are yielding tangible benefits across its core business units. The continued emphasis on efficiency and portfolio quality positions LANXESS to maintain momentum through the remainder of the fiscal year. LANXESS continues to focus on cost optimization, portfolio restructuring, and innovation to navigate ongoing market uncertainties and drive long-term growth.
