LANXESS Confirms FY26 Guidance Despite Weak Start Amid Global Market Pressures

LANXESS India Private Ltd. has confirmed its full-year FY2026 earnings guidance despite reporting a subdued first quarter impacted by weak global demand, geopolitical uncertainties, and portfolio restructuring effects.

The specialty chemicals company reported Q1 2026 sales of EUR 1.378 billion, down 13.9% from EUR 1.601 billion recorded during the same period last year. EBITDA before exceptional items declined 29.3% year-on-year to EUR 94 million, while the EBITDA margin narrowed to 6.8% from 8.3% in Q1 2025.

The company attributed the weaker performance to a persistently soft economic environment, lower raw material prices, adverse currency movements, and ongoing pricing pressure from Asian competitors. The results were also affected by the divestment of its Urethane Systems business effective April 1, 2025.

Matthias Zachert said that although the year began on a weak note, the company has observed improving momentum since March. He noted that disruptions caused by the Middle East conflict have affected supply chains of several Asian competitors, prompting customers to increasingly shift toward European suppliers such as LANXESS.

According to Zachert, the company’s supply reliability has emerged as a significant competitive advantage under current market conditions. He also stated that LANXESS has implemented price increases across several product categories to offset rising raw material, logistics, and energy costs.

FY2026 Outlook Maintained

LANXESS said it expects market conditions to remain challenging in the coming months but anticipates significantly stronger EBITDA performance during the second quarter of 2026, with projected EBITDA pre-exceptionals expected between EUR 130 million and EUR 150 million.

The company maintained its previously announced FY2026 EBITDA pre-exceptionals guidance range of EUR 450 million to EUR 550 million.

Segment Performance

Consumer Protection Segment

The Consumer Protection division generated sales of EUR 458 million in Q1 2026, down 10.7% from EUR 513 million in the corresponding quarter last year.

EBITDA pre-exceptionals for the segment declined 15.1% to EUR 62 million due to weaker demand, lower sales volumes, adverse exchange rate movements, and the absence of insurance reimbursements that had supported prior-year earnings.

Specialty Additives Segment

Sales in the Specialty Additives segment fell 4.4% to EUR 521 million, while EBITDA pre-exceptionals declined 15.4% to EUR 44 million.

LANXESS said lower raw material prices translated into reduced selling prices, while foreign exchange pressures also impacted profitability. However, stronger demand for lubricants and bromine-based flame retardants partially supported segment performance.

Advanced Intermediates Segment

The Advanced Intermediates business reported the sharpest decline, with sales falling 16.8% year-on-year to EUR 396 million.

EBITDA pre-exceptionals for the segment dropped 32.5% to EUR 27 million due to weak demand conditions, lower capacity utilisation, and declining sales volumes.

Financial Position and Sustainability

LANXESS reported net financial liabilities of EUR 2.085 billion as of March 31, 2026, while its workforce stood at approximately 11,630 employees across 32 countries.

The company recorded total sales of EUR 5.7 billion in 2025 and continues to maintain a strong sustainability profile through recognition in indices and ratings including the Dow Jones Best-in-Class Index, MSCI ESG ratings, and ISS ESG rankings.

LANXESS operates globally in chemical intermediates, additives, and consumer protection products, with a continued focus on specialty chemicals, sustainable manufacturing, and advanced materials innovation.
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