Clariant (CLN) Q1 2026 earnings summary

Executive summary

• Q1 2026 sales reached CHF 918 million, down 2% in local currency, impacted by the Middle East conflict, Catalysts one-offs, and portfolio pruning in Care Chemicals.

• EBITDA before exceptional items was CHF 160.2 million (17.5% margin), down 16% year-over-year, mainly due to lower Catalysts volumes, unfavorable mix, and a one-off precious metal sale.

• Free cash flow conversion improved to 54% (LTM), up 12 percentage points year-over-year, driven by disciplined capex and net working capital management.

• Performance improvement program delivered CHF 59 million in savings (74% of target), with CHF 9 million achieved in Q1 and full CHF 80 million run rate expected by end of 2026.

• Innovation sales ratio increased to 19.9%, with multiple industry awards for new products and sustainability initiatives.

Financial highlights

• Sales declined 2% in local currency and 9.4% in CHF year-over-year; underlying sales nearly flat when excluding portfolio pruning.

• EBITDA before exceptional items margin dropped 130 bps to 17.5% year-over-year.

• Pricing decreased 1.5%, volumes down 0.5%, and currency impact was -7.4%.

• Raw material costs decreased by 4.5%, energy costs increased by 2.2%, logistics costs down 8.8%.

• Free cash flow conversion expected to exceed 40% for the year.

Outlook and guidance

• 2026 guidance unchanged: sales expected to be flat in local currency, with EBITDA margin before exceptional items around 18%.

• Free cash flow conversion expected above 40%.

• Growth anticipated in Adsorbents & Additives, slight growth in Care Chemicals, Catalysts expected lower.

• Recovery in Catalysts anticipated in H2 2026, contingent on reopening of the Strait of Hormuz.

• Guidance assumes reopening of Strait of Hormuz by end of June; prolonged closure would increase risks of feedstock shortages and inflation.