LANXESS expects business to pick up in the second half of 2026 at the earliest

Mumbai (Maharashtra) [India], March 31: A market environment that remained weak and high levels of geopolitical uncertainty characterized the 2025 fiscal year for specialty chemicals company LANXESS....

TBT Online Desk

March 31, 2026 2 Min Read

Mumbai (Maharashtra) [India], March 31: A market environment that remained weak and high levels of geopolitical uncertainty characterized the 2025 fiscal year for specialty chemicals company LANXESS. At EUR 5.673 billion, revenue was down 10.9 percent from the previous year’s figure of EUR 6.366 billion. EBITDA pre exceptionals decreased by 16.9 percent, falling from EUR 614 million in the previous year to EUR 510 million. The EBITDA margin pre exceptionals for the full year was 9.0 percent, compared with 9.6 percent in the prior year. This development was primarily driven by persistently weak demand in nearly all customer industries, coupled with correspondingly lower sales volumes. Lower purchase prices for raw materials and ongoing price pressure from the Asian region in some businesses led to a reduction in selling prices. Additionally, the decline in operating results was due to the absence of earnings from the Urethane Systems business unit after its sale on April 1, 2025, as well as adverse currency effects. “2025 was an extremely tough year for the entire chemical industry and for LANXESS as well. For 2026, we expect to see positive momentum in the second half of the year at the earliest, for example through the German government’s infrastructure stimulus program,” said Matthias Zachert, LANXESS CEO. “For us, therefore, the guiding principle for 2026 remains: We control the things we can control. That means continuing to cut costs, streamline processes, and create new market opportunities.” For the full year 2026, the company expects EBITDA pre exceptionals to be between EUR 450 and 550 million. Further cost-cutting measures LANXESS has launched additional cost-cutting measures for 2026 aimed at generating permanent annual savings of around EUR 100 million by the end of 2028. To achieve this goal, the company plans to cut 550 additional jobs—about two-thirds of them in Germany—in addition to maintaining strict cost discipline at all levels. Administrative functions are primarily affected. The job cuts are to be implemented as socially responsible as possible through natural staff turnover and demographic effects. LANXESS had already announced optimizations in its production network in August 2025. These optimizations are expected to generate permanent annual savings of approximately EUR 50 million, resulting in total structural cost savings of around EUR 150 million planned by the end of 2028. Additionally, the company is reducing labor costs in the short term. For employees covered by collective bargaining agreements, LANXESS has agreed to a 35-hour workweek through the end of the year. For management and employees who are not covered by a collective bargaining agreement, there will be no raise in base salaries. Through the “FORWARD!” action plan initiated in 2023, LANXESS has already been achieving permanent annual savings of around EUR 150 million since the end of 2025.