Lanxess (LXS) Q1 2026 (Media) earnings summary

Executive summary

• Q1 2026 sales declined 13.9% year-over-year to €1,378 million, mainly due to weak demand, negative currency effects, and the sale of the Urethane Systems business unit.

• EBITDA pre exceptionals fell 29.3% to €94 million, with margin dropping to 6.8% from 8.3% year-over-year, reflecting weak demand, lower selling prices, and negative currency impacts.

• Net income was negative at €141 million, compared to negative €57 million in Q1 2025.

• Positive momentum emerged in March, driven by supply chain disruptions in Asia and increased customer demand for European suppliers, with improved volumes and momentum continuing into Q2.

• Full-year 2026 EBITDA guidance of €450–550 million is confirmed, with cost discipline and expectations for improvement in the second half.

Financial highlights

• Q1 2026 group sales were €1,378 million, down 14% year-over-year, and EBITDA pre exceptionals dropped 29% to €94 million.

• Gross profit declined to €262 million from €322 million year-over-year.

• EBITDA margin pre exceptionals decreased to 6.8% from 8.3% in Q1 2025.

• Cash flow from operating activities improved to €12 million from minus €66 million, and free cash flow improved to minus €29 million from minus €111 million.

• Net financial liabilities increased to €2,085 million as of March 31, 2026.

Outlook and guidance

• Full-year 2026 EBITDA pre exceptionals guidance is reaffirmed at €450–550 million.

• Q2 2026 EBITDA pre exceptionals is expected to rise significantly to €130–150 million.

• Positive momentum is expected to continue in Q2 and the second half, with price increases implemented in April and May.

• Effects from the German economic stimulus program are anticipated in H2 2026 or early 2027.

• Market conditions are expected to remain challenging, with persistent negative FX impact from a weak US dollar.