LANXESS reported a challenging financial performance for fiscal year 2025, impacted by weak global demand and ongoing geopolitical uncertainties. The company’s revenue declined by 10.9% to EUR 5.673 billion, compared to EUR 6.366 billion in the previous year. EBITDA pre-exceptionals also dropped 16.9% to EUR 510 million, with margins slightly reduced to 9.0%.
The downturn was largely driven by low demand across key industries, reduced sales volumes, and pricing pressure—especially from Asian markets. Additional factors included lower raw material costs, currency fluctuations, and the absence of earnings from the Urethane Systems business following its divestment in April 2025.
CEO Matthias Zachert stated:
“2025 was an extremely tough year for the entire chemical industry and for LANXESS as well. For 2026, we expect to see positive momentum in the second half of the year at the earliest, for example through the German government’s infrastructure stimulus program,”
He further added:
“For us, therefore, the guiding principle for 2026 remains: We control the things we can control. That means continuing to cut costs, streamline processes, and create new market opportunities.”
Outlook and cost optimisation strategy
For fiscal year 2026, LANXESS expects EBITDA pre-exceptionals between EUR 450 million and EUR 550 million, with recovery anticipated only in the latter half of the year.
The company has introduced additional cost-saving measures targeting EUR 100 million in annual savings by 2028, including plans to reduce approximately 550 jobs, primarily in administrative functions. These reductions will be implemented through natural attrition and demographic changes.
Combined with earlier initiatives, including production network optimisation and the “FORWARD!” action plan, LANXESS aims to achieve total structural savings of around EUR 150 million by 2028. Short-term measures such as reduced working hours and salary freezes are also being implemented to control labour costs.
Improved financial position
LANXESS successfully reduced its net financial debt by 15%, bringing it down to EUR 2.023 billion at the end of 2025, mainly supported by proceeds from the sale of its Urethane Systems business.
Segment-wise performance
- Consumer Protection: Revenue declined 9.2% to EUR 1.889 billion, while EBITDA remained stable at EUR 290 million, supported by cost-saving initiatives. Margin improved to 15.4%.
- Specialty Additives: Sales fell 6.9% to EUR 2.056 billion, with EBITDA down 11.5% to EUR 201 million, impacted by weak demand and exchange rate pressures.
- Advanced Intermediates: Revenue dropped 8.4% to EUR 1.653 billion, while EBITDA decreased sharply by 39% to EUR 128 million, due to low capacity utilisation and competitive pressures from Asia.