Specialty chemicals company LANXESS has reaffirmed its full-year 2026 earnings guidance despite a subdued start to the year marked by weak market conditions, geopolitical uncertainties, and the impact of portfolio divestments.
The company reported first-quarter 2026 sales of EUR 1.378 billion, down 13.9 percent from EUR 1.601 billion in the corresponding period last year. EBITDA pre exceptionals declined 29.3 percent to EUR 94 million from EUR 133 million, while the EBITDA margin pre exceptionals narrowed to 6.8 percent from 8.3 percent.
LANXESS attributed the weaker performance to lower selling prices driven by reduced raw material costs, sustained pricing pressure from Asian competitors, adverse currency movements, and the divestment of its Urethane Systems business in April 2025.
“The start of the year was weak, but since March we have seen a slight positive momentum,” said Matthias Zachert, CEO of LANXESS. He noted that disruptions to Asian competitors’ supply chains arising from the Middle East conflict have prompted customers to return to European suppliers, strengthening LANXESS’s competitive position. The company has also implemented price increases to offset higher raw material, energy and logistics costs.
Looking ahead, LANXESS expects second-quarter EBITDA pre exceptionals to improve significantly to between EUR 130 million and EUR 150 million. The company maintained its full-year guidance of EUR 450 million to EUR 550 million in EBITDA pre exceptionals.
Among business segments, Consumer Protection, Specialty Additives and Advanced Intermediates all recorded lower sales and earnings, reflecting weak demand, lower volumes and adverse exchange-rate impacts during the quarter.