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LANXESS: Challenging market environment shapes third quarter of 2025

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Mumbai: The continuing weak economic environment and massive geopolitical uncertainties impacted the results of specialty chemicals company LANXESS in the third quarter of 2025. Sales amounted to EUR 1.338 billion, down 16.3 percent from EUR 1.598 billion in the previous year. EBITDA pre exceptionals was EUR 125 million, a 27.7 percent decline compared with the prior-year figure of EUR 173 million. This decline was primarily due to generally weak demand, which led to lower sales volumes. In addition, the sale of the Urethane Systems business unit on April 1, 2025 – whose results are no longer included in the quarterly figures – and adverse currency effects also contributed to the decline in the Group’s earnings.

The EBITDA margin pre exceptionals for the third quarter was 9.3 percent, compared with 10.8 percent in the same period last year.

“The ongoing weakness in global demand continues to impact the entire chemical industry, including us. The situation is particularly dramatic in our target industries of construction, automotive and agrochemicals. We currently see no light at the end of the tunnel and expect this situation to continue well into next year,” said Matthias Zachert, CEO of LANXESS. “We are therefore continuing to focus all our energy on what we can influence: reducing costs, streamlining processes and structures, and optimizing our market positioning.” Nevertheless, the chemical industry needs further support from politicians. Zachert said: “Berlin and Brussels must strengthen our competitiveness much more quickly and decisively – otherwise entire value chains are at risk.”

LANXESS has specified its guidance for the full year 2025 and now expects EBITDA pre exceptionals to be around the lower end of the range of EUR 520 to 580 million.

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