LANXESS faced continued challenges in Q2 2025 due to global economic weakness, lower volumes, and the divestment of its Urethane Systems business. Sales dropped 12.6 percent to EUR 1.47 billion, while EBITDA pre exceptionals fell 17.1 percent to EUR 150 million. Despite this, the company generated a positive free cash flow of EUR 31 million and significantly reduced net financial debt by 18 percent to EUR 2.07 billion.
CEO Matthias Zachert noted ongoing uncertainties, including tariff discussions with the U.S., which continue to pressure the European chemical sector. He emphasized LANXESS’ focus on efficiency, portfolio restructuring, and cost optimization to ensure readiness when demand rebounds.
The company has revised its fiscal 2025 EBITDA guidance to EUR 520–580 million, down from the earlier EUR 600–650 million forecast. To strengthen competitiveness, LANXESS is streamlining operations, including shutting its UK Widnes aroma chemicals site by 2026 and enhancing bromine production efficiency in the U.S. These measures are expected to deliver EUR 50 million in annual savings by 2027.
Segment performance showed mixed results:
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Consumer Protection: Sales declined 12.8 percent to EUR 489 million, but EBITDA rose 8.8 percent to EUR 87 million, supported by product mix improvements, insurance compensation, and cost savings.
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Specialty Additives: Sales fell 7.0 percent to EUR 528 million, with EBITDA down 17.1 percent to EUR 58 million, impacted by weak construction demand and energy costs.
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Advanced Intermediates: Sales dropped 6.7 percent to EUR 446 million, with EBITDA down 24.1 percent to EUR 44 million due to weaker utilization and demand.
LANXESS continues to reshape its portfolio toward specialty chemicals, strengthen its financial position, and adapt production capacity to navigate market volatility.
