Vijay Singh
Mumbai (Maharashtra) [India], June 16: Specialty chemicals company LANXESS has started the 2025 fiscal year with a significant increase in earnings: EBITDA pre exceptionals rose by 31.7 percent from EUR 101 million to EUR 133 million, despite the weak global economic environment. The Group improved its earnings in all segments, mainly due to better capacity utilization and cost savings as part of the “FORWARD!” action plan.
Sales in the first quarter remained stable at EUR 1.601 billion, on a par with the prior-year figure of EUR 1.607 billion. LANXESS increased sales volumes in most businesses, although lower sales prices had a negative impact on revenues.
“We have made a solid start to the new fiscal year – despite all the adversities in the economic and geopolitical environment. Our more efficient positioning and improved cost situation are now paying off,” said Matthias Zachert, Chairman of the Board of Management of LANXESS AG. “The situation around us has continued to escalate since the beginning of the year. The U.S. government’s new trade policy has shaken the markets and exacerbated the already high level of uncertainty. Combined with the ongoing weakness of the economy, this makes the situation even more challenging for companies.”
Net income for the first quarter of 2025 was minus EUR 57 million, compared with minus EUR 98 million in the same period last year.
LANXESS confirms its guidance for the 2025 fiscal year and continues to expect EBITDA pre exceptionals of between EUR 600 and 650 million.
For the second quarter of the fiscal year 2025, LANXESS anticipates an increase in earnings compared with the first quarter of 2025. However, compared with the same quarter of the previous year, the Group expects earnings to decline, primarily because the earnings contribution from Urethane Systems will no longer be included.
Sale of the Urethane Systems business completed
On 1 April 2025, LANXESS sold its Urethane Systems business to Japan’s UBE Corporation, thus divesting its last remaining polymer business. The transaction was the last major step in the company’s portfolio transformation towards specialty chemicals.
LANXESS will use the proceeds from the sale to redeem its EUR 500 million benchmark bond due May 2025 and further reduce its debt.
Business development in the segments
The Consumer Protection segment posted first-quarter sales of EUR 513 million, an increase of 0.8 percent compared with the prior-year figure of EUR 509 million. EBITDA pre exceptionals rose by 49 percent from EUR 49 million in the prior-year quarter to EUR 73 million. This was mainly due to higher sales volumes and the associated improvement in capacity utilization. In addition, cost savings from the “FORWARD!” action plan had a positive impact on earnings and margins. The EBITDA margin pre exceptionals was 14.2 percent, compared with 9.6 percent in the same period of the previous year.
In the first quarter of 2025, the Specialty Additives segment recorded sales of EUR 545 million, down 3.7 percent on the first quarter of 2024, when sales amounted to EUR 566 million. EBITDA pre exceptionals increased by 8.3 percent from EUR 48 million in the same quarter of the previous year to EUR 52 million. The cost savings from the “FORWARD!” action plan also had a positive impact on earnings and margins, along with a favorable product mix. The EBITDA margin pre exceptionals was 9.5 percent, up from 8.5 percent in the prior-year quarter.
The Advanced Intermediates segment generated sales of EUR 476 million in the first quarter of 2025, up 2.4 percent from EUR 465 million in the year-ago period. EBITDA pre exceptionals reached EUR 40 million, up 8.1 percent from EUR 37 million in the prior-year period. Higher sales volumes and cost savings from the “FORWARD!” action plan had a particularly positive impact on earnings and margins. The EBITDA margin pre exceptionals was 8.4 percent, slightly above the margin of 8.0 percent recorded in the same quarter of the previous year.
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