Lanxess Q2 Profit Slides 17 Percent Sales Down 12.6 Percent as Global Slowdown Bites

Lanxess reported a 17.1% drop in Q2 2025 EBITDA (pre-exceptionals), reaching €150 million compared to €181 million last year, as soft demand hit all business segments. Sales also fell 12.6% to €1.466 billion, with volume declines across the board. The sale of the Polyurethane Systems business on April 1 further impacted quarterly results.

CEO Matthias Zachert highlighted the deteriorating global economic climate and ongoing US tariff negotiations as major contributors to market uncertainty, especially for the European chemicals industry. The company is doubling down on cost control and process optimization to stay agile and profitable when recovery comes.

EBITDA margin slipped to 10.2% from last year’s 10.8%. Lanxess has revised its 2025 outlook, now forecasting EBITDA between €520–580 million, down from its earlier €600–650 million guidance, factoring in a €10 million hit from a restricted chlorine supplier.

The completed sale of the Polyurethane Systems unit to Japan’s Ube Industries marked Lanxess’ exit from its last polymer business and allowed the group to cut net debt by 18%, from €2.512 billion to €2.069 billion. The proceeds will help redeem €500 million in bonds maturing May 2025. Despite the harsh environment, Lanxess generated €31 million in positive free cash flow.

To adapt, Lanxess is accelerating production network restructuring—shutting its Krefeld-Uerdingen hexane oxidation facility ahead of schedule, streamlining aromatic plants, and planning to close the Widnes site in the UK by 2026 due to high costs. Efficiency upgrades at the El Dorado site in the US are also underway, aiming for €50 million annual cost savings by the end of 2027.

In the Consumer Protection segment, sales dropped 12.8% to €489 million, but EBITDA rose 8.8% to €87 million, with profitability improving to 17.8%. Specialty Additives revenue slipped 7.0% to €528 million and EBITDA fell 17.1% to €58 million, impacted by weak construction demand and higher energy costs. Advanced Intermediates sales fell 6.7% to €446 million, with EBITDA down 24.1% to €44 million.