Challenging market environment shapes third quarter of 2025 – LANXESS

LANXESS has specified its guidance for the full year 2025 and now expects EBITDA pre exceptionals to be around the lower end of the range of EUR 520 to 580 million.

Further cost reductions planned

Thanks to the “FORWARD!” action plan initiated in 2023, LANXESS will achieve permanent annual savings of around EUR 150 million by the end of 2025. In August of this year, LANXESS announced additional optimizations in its production network. These are expected to generate permanent annual savings of around EUR 50 million by the end of 2027. In addition, the company is now launching further measures with a savings potential of around EUR 100 million. The details are currently being worked out and will be specified in the first quarter of 2026.

Net financial debt stable despite tense market situation

LANXESS was able to keep its net financial liabilities stable thanks to tight cash management. At the end of the third quarter, they amounted to EUR 2.072 billion, compared with EUR 2.069 billion at the end of the second quarter.

Business development in the segments

The Consumer Protection segment achieved sales of EUR 453 million in the third quarter of 2025, a 13.1 percent decline compared with the prior-year figure of EUR 521 million. EBITDA pre exceptionals was EUR 72 million, up 1.4 percent from EUR 71 million in the same period last year. Among other things, cost savings from the “FORWARD!” action plan ensured stable development. The EBITDA margin pre exceptionals increased to 15.9 percent, compared with 13.6 percent in the prior-year period.

The Specialty Additives segment recorded sales of EUR 505 million, an 8.2 percent decline from EUR 550 million in the third quarter of 2024. EBITDA pre exceptionals decreased by 26.2 percent, falling from EUR 61 million in the prior-year quarter to EUR 45 million. Weak demand and the resulting lower capacity utilization led to a decline in earnings and margins. The EBITDA margin pre exceptionals was 8.9 percent, compared with 11.1 percent in the prior year.

In the Advanced Intermediates segment, sales in the third quarter of 2025 fell to EUR 377 million, a decline of 17.1 percent compared to the prior-year figure of EUR 455 million. EBITDA pre exceptionals reached EUR 26 million, down 61.8 percent from EUR 68 million in the same period last year. Weak demand, persistent price pressure from Asia, and lower capacity utilization had a negative impact on earnings and margin. The EBITDA margin pre exceptionals was 6.9 percent, down from 14.9 percent in the prior year.

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