Chemical Industry News, Data & Insights

Lanxess Faces Challenging Q3 2025 Market Conditions

Key highlights
  • Revenue fell 16.3% to EUR 1.34 billion in Q3 2025.
  • EBITDA pre exceptionals dropped 27.7% to EUR 125 million.
  • Cost savings of EUR 100 million planned, details by Q1 2026.
  • Net financial debt stable at EUR 2.072 billion.

Financial Performance

In Q3 2025, Lanxess reported a 16.3% decline in revenue, totaling EUR 1.34 billion, compared to EUR 1.598 billion in the previous year. EBITDA pre exceptionals fell by 27.7% to EUR 125 million, primarily due to weak demand, the sale of the Urethane Systems business unit, and adverse currency effects. The EBITDA margin pre exceptionals decreased to 9.3% from 10.8% in the prior year.

Cost Reduction Initiatives

Lanxess plans further cost reductions of around EUR 100 million, with details to be specified in Q1 2026. The ongoing “FORWARD!” action plan is expected to achieve permanent annual savings of EUR 150 million by the end of 2025, with additional production network optimizations projected to save EUR 50 million annually by the end of 2027.

Net Financial Debt

Despite the challenging market conditions, Lanxess maintained stable net financial debt, which stood at EUR 2.072 billion at the end of Q3 2025, slightly up from EUR 2.069 billion at the end of Q2.

Segment Performance

The Consumer Protection segment saw a 13.1% sales decline to EUR 453 million, with EBITDA pre exceptionals rising slightly to EUR 72 million. The Specialty Additives segment experienced an 8.2% sales drop to EUR 505 million, with EBITDA pre exceptionals falling to EUR 45 million. The Advanced Intermediates segment reported a 17.1% sales decrease to EUR 377 million, with EBITDA pre exceptionals dropping to EUR 26 million.