Lanxess Boosts Q1 EBITDA by 31 Percent While Exiting Polymer Business for Good

On May 8, Lanxess reported a 31.7% surge in Q1 2025 EBITDA, reaching €133 million, up from €101 million a year earlier, despite persistent global headwinds. This sharp increase is credited to improved capacity utilization and cost efficiency under its “FORWARD!” transformation plan.

Quarterly sales held steady at €1.601 billion, showing minimal change from the previous year, as lower pricing was offset by higher sales volumes across most business units. Net income losses narrowed to €57 million, a 41.8% improvement over Q1 2024’s €98 million deficit.

The company reaffirmed its full-year guidance, targeting an EBITDA range of €600–650 million. CEO Matthias Zachert noted that despite economic and geopolitical volatility, Lanxess is delivering a strong start to the fiscal year, supported by leaner operations and agile positioning. He acknowledged market turbulence stemming from new U.S. trade policies and ongoing economic softness, warning that challenges are intensifying.

Looking ahead, Lanxess expects Q2 earnings to rise sequentially from Q1, though year-on-year comparisons will dip due to the absence of income from its now-divested Polyurethane Systems business.

All core divisions showed progress. The Consumer Protection unit posted €513 million in revenue and €73 million in EBITDA, up 0.8% and 49% respectively, driven by strong volumes. The Specialty Additives division saw revenue dip to €545 million (down 3.7%) but lifted EBITDA to €52 million, up 8.3%. Advanced Intermediates brought in €476 million with €40 million EBITDA, growing by 2.4% and 8.1% respectively.

In a landmark strategic move, Lanxess completed the sale of its Polyurethane Systems unit to UBE Corporation of Japan on April 1, fully exiting polymer-related operations. Proceeds from the deal will go toward redeeming a €500 million bond due May 2025 and further reducing corporate debt.