LANXESS Reports 16% Sales Drop in Q3 Amid Weak Demand

Global Economic Slowdown Weighs on LANXESS as Cost-Cutting Measures Intensify

LANXESS faced another challenging quarter in Q3 2025, reporting a 16.3% drop in sales and a 27.7% decline in EBITDA pre-exceptionals as weak global demand, sector headwinds, and currency effects continued to pressure performance.

Specialty chemicals manufacturer LANXESS reported weaker third-quarter results as global economic stagnation, sluggish demand, and geopolitical instability weighed heavily on its performance.

The company’s revenue declined by 16.3% year-on-year to EUR 1.34 billion, down from EUR 1.6 billion in the same period last year. EBITDA pre-exceptionals fell 27.7% to EUR 125 million, mainly due to reduced sales volumes and the absence of contributions from the Urethane Systems business, which was sold on April 1, 2025. Unfavorable exchange rates also added pressure to profitability. The EBITDA margin pre-exceptionals stood at 9.3%, compared to 10.8% in Q3 2024.

LANXESS CEO Matthias Zachert commented, “The ongoing weakness in global demand continues to affect the chemical industry, including us. The challenges are particularly severe in the construction, automotive, and agrochemical sectors. We are focusing all our energy on what we can influence—reducing costs, simplifying structures, and strengthening market positioning.”

He further called for stronger government support, emphasizing, “Berlin and Brussels must act faster and more decisively to safeguard competitiveness; otherwise, entire value chains could be at risk.”

LANXESS reaffirmed its 2025 full-year EBITDA guidance, expecting results to land at the lower end of the EUR 520–580 million range.

Cost Efficiency and Structural Streamlining

The company’s “FORWARD!” transformation plan, launched in 2023, is projected to yield EUR 150 million in permanent annual savings by the end of 2025. Additional production network optimizations introduced earlier this year are expected to contribute another EUR 50 million in annual savings by 2027.

LANXESS has now announced further cost-saving measures worth around EUR 100 million, with details to be finalized in the first quarter of 2026.

Financial Stability Amid Pressure

Despite persistent economic headwinds, net financial debt remained stable at EUR 2.07 billion at the end of Q3 2025, compared to EUR 2.069 billion in the previous quarter—reflecting disciplined cash management and operational resilience.

Segment Performance Overview

Consumer Protection:
Sales reached EUR 453 million, down 13.1% year-on-year, but EBITDA pre-exceptionals improved slightly by 1.4% to EUR 72 million. The EBITDA margin rose to 15.9%, supported by cost savings from the “FORWARD!” program.

Specialty Additives:
Revenue fell 8.2% to EUR 505 million, while EBITDA pre-exceptionals declined 26.2% to EUR 45 million, largely due to weak demand and lower capacity utilization. Margin dropped to 8.9% from 11.1% last year.

Advanced Intermediates:
Sales decreased 17.1% to EUR 377 million, and EBITDA pre-exceptionals plummeted 61.8% to EUR 26 million. Persistent price competition from Asia, reduced volumes, and weak utilization affected performance, lowering the margin to 6.9% from 14.9%.

Looking Ahead

LANXESS remains committed to structural efficiency and financial discipline as it navigates a volatile global landscape. With a focus on innovation, sustainability, and operational resilience, the company aims to restore momentum despite ongoing industry challenges.