Lanxess reports 10.9 percent decline for fiscal 2025

Cologne, Germany— Specialty chemicals company LANXESS said Thursday it does not expect a meaningful business recovery until at least the second half of 2026, after reporting a sharp decline in earnings and sales for 2025 amid weak global demand and ongoing economic uncertainty.

The company reported revenue of 5.673 billion euros ($6.1 billion) for 2025, down 10.9% from the previous year, while earnings before interest, taxes, depreciation and amortization (EBITDA) pre-exceptionals fell 16.9% to 510 million euros.

LANXESS attributed the downturn to persistently weak demand across most customer industries, lower sales volumes and continued pricing pressure, particularly from Asian competitors. Lower raw material costs also contributed to reduced selling prices, while unfavorable currency effects and the sale of its Urethane Systems business in April 2025 further weighed on results.

“2025 was an extremely tough year for the entire chemical industry and for LANXESS as well,” Chief Executive Matthias Zachert said, adding that the company expects “positive momentum in the second half of the year at the earliest.”

For 2026, LANXESS forecast EBITDA pre-exceptionals in a range of 450 million to 550 million euros, signaling continued pressure in the near term.

In response, the company announced additional cost-cutting measures aimed at generating about 100 million euros in annual savings by the end of 2028. The plan includes cutting 550 jobs, primarily in administrative functions, with about two-thirds of the reductions in Germany.

LANXESS said it will also reduce labor costs in the short term, including implementing a 35-hour workweek for certain employees and freezing base salaries for others.

The company has already been pursuing savings through its “FORWARD!” action plan, which has delivered about 150 million euros in annual cost reductions since the end of 2025.

Despite the earnings decline, LANXESS reported a reduction in net financial debt to 2.023 billion euros at the end of 2025, down 15% from the previous year, largely due to proceeds from the divestment of its Urethane Systems unit.

Across its business segments, performance remained mixed. Sales in the Consumer Protection segment fell 9.2%, though earnings slightly increased due to cost savings. Meanwhile, the Specialty Additives and Advanced Intermediates segments both recorded declines in revenue and earnings, reflecting continued weak demand and lower capacity utilization.

LANXESS said geopolitical uncertainty and a sluggish market environment are expected to continue weighing on performance in the near term, with any recovery likely dependent on broader economic stimulus measures, including infrastructure spending in Germany.