Specialty chemicals company LANXESS reported a challenging financial performance for fiscal year 2025, impacted by weak global demand and geopolitical uncertainties. The company indicated that any meaningful business recovery is expected no earlier than the second half of 2026.
For 2025, LANXESS recorded revenue of EUR 5.673 billion, reflecting a decline of 10.9% compared to EUR 6.366 billion in the previous year. EBITDA pre exceptionals fell by 16.9% to EUR 510 million, down from EUR 614 million in 2024. The EBITDA margin pre exceptionals stood at 9.0%, slightly lower than 9.6% recorded a year earlier.
The downturn was largely attributed to continued weak demand across most end-use industries, resulting in reduced sales volumes. Additionally, declining raw material costs and pricing pressure from Asian markets led to lower selling prices. The absence of earnings from the Urethane Systems business, following its divestment on April 1, 2025, along with negative currency effects, further impacted overall performance.
Commenting on the outlook, Matthias Zachert, CEO of LANXESS, said:
“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. 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.”
For the full year 2026, the company forecasts EBITDA pre exceptionals in the range of EUR 450 million to EUR 550 million.
Cost Optimization and Efficiency Measures
LANXESS has initiated further cost-saving measures aimed at achieving permanent annual savings of approximately EUR 100 million by the end of 2028. As part of this initiative, the company plans to reduce 550 positions, with around two-thirds of the reductions expected in Germany. The focus will primarily be on administrative roles, with implementation planned through natural attrition and demographic adjustments.
These measures build on previously announced production network optimizations from August 2025, which are expected to deliver an additional EUR 50 million in annual savings. Together, these initiatives bring the total targeted structural savings to around EUR 150 million by 2028.
In the short term, labor costs are also being managed. Employees under collective agreements will follow a reduced 35-hour workweek until year-end, while those outside such agreements, including management, will not receive base salary increases.
The company has already achieved permanent savings of approximately EUR 150 million annually through its “FORWARD!” action plan, implemented in 2023.
Debt Reduction and Financial Position
LANXESS has further lowered its net financial debt, primarily supported by proceeds from the sale of the Urethane Systems business. Net financial liabilities stood at EUR 2.023 billion at the end of 2025, marking a 15.0% reduction from EUR 2.381 billion at the end of 2024.
Segment Performance Overview
The Consumer Protection segment generated revenue of EUR 1.889 billion in 2025, representing a 9.2% decline compared to EUR 2.081 billion in the previous year. EBITDA pre exceptionals increased slightly by 1.4% to EUR 290 million, supported by cost savings under the “FORWARD!” program. The EBITDA margin improved to 15.4% from 13.7%.
In the Specialty Additives segment, revenue declined by 6.9% to EUR 2.056 billion from EUR 2.209 billion in 2024. EBITDA pre exceptionals decreased by 11.5% to EUR 201 million, impacted by weak demand, lower capacity utilization, and adverse currency effects. The EBITDA margin stood at 9.8%, compared to 10.3% in the previous year.
The Advanced Intermediates segment reported revenue of EUR 1.653 billion, down 8.4% from EUR 1.804 billion in 2024. EBITDA pre exceptionals dropped significantly by 39.0% to EUR 128 million, due to weak demand, competitive pressure from Asia, and low plant utilization. The EBITDA margin declined to 7.7% from 11.6%.
