Lanxess (LXS) investor relations material

Executive summary

• Full-year 2025 EBITDA pre exceptionals reached €510 million, down 17% year-over-year, in line with guidance, as Q4 earnings declined sharply due to lower volumes, adverse FX, and the sale of the Urethane Systems business.

• Revenue declined 10.9% to €5.673 billion in 2025 amid weak demand and geopolitical uncertainty.

• Net financial debt reduced to €2.023 billion by year-end, supported by disciplined working capital management and proceeds from the Urethane Systems sale.

• The company exited polymer businesses, focusing on core segments, and initiated permanent cost reductions of €100 million, including 550 job cuts by 2028.

• A stable dividend of €0.10 per share is proposed for 2025, maintaining focus on deleveraging.

Financial highlights

• Q4 2025 sales were €1,268 million (-14% yoy), with EBITDA pre at €102 million (-36% yoy) and margin at 8.0%.

• FY 2025 sales reached €5,673 million (-11% yoy), EBITDA pre exceptionals at €510 million (-16.9% yoy), and margin at 9.0%.

• Net income for FY 2025 was -€577 million, impacted by €341 million in impairments.

• Free cash flow for FY 2025 was -€30 million, reflecting lower operating results and higher D&A.

• Equity ratio remains strong at 45% despite a decrease in total assets and equity.

Outlook and guidance

• 2026 EBITDA pre exceptionals guidance is set at €450–550 million, reflecting high market volatility and macroeconomic uncertainties.

• Cost savings of €150 million targeted by end of 2028, with €100 million by end of 2025.

• Business recovery is anticipated no earlier than the second half of 2026, with some positive impulses expected from infrastructure stimulus.

• Construction sector recovery is expected earliest in H2 2026; cautious outlook for agro demand.

• Free cash flow for 2026 is possible within the guidance range, excluding working capital swings.