Lanxess maintains full-year outlook despite lower first quarter

Cologne, Germany — Lanxess AG announced it is maintaining its full-year 2026 earnings outlook despite a weak start to the year marked by lower sales, continued pricing pressure and geopolitical disruptions that are reshaping supply chains in the chemicals industry.

The specialty chemicals company reported first-quarter sales of 1.378 billion euros, down 13.9% from the same period a year earlier. Earnings before interest, taxes, depreciation and amortization, adjusted for exceptional items, fell 29.3% to 94 million euros.

The company said results were pressured by weaker demand across key markets, lower selling prices driven by raw material cost declines and persistent competitive pressure from Asian producers. Currency effects and portfolio changes following the prior-year divestiture of its Urethane Systems business also weighed on performance.

Despite the downturn, Lanxess said it has seen a slight improvement in momentum since March, driven in part by shifting global trade flows following geopolitical tensions in the Middle East. The company said supply chain disruptions affecting Asian competitors have led some customers to turn back to European suppliers, improving order activity in certain segments.

Chief Executive Officer Matthias Zachert said the company has also raised prices in several product lines to offset higher costs for raw materials, energy and logistics.

Lanxess confirmed its full-year 2026 guidance, continuing to expect EBITDA before exceptional items in the range of 450 million to 550 million euros. The company also indicated that second-quarter earnings are expected to rise significantly compared with the first quarter, projecting a range of 130 million to 150 million euros.

The company described the first quarter as weak but said it anticipates a gradual improvement in conditions as the year progresses, though it expects current market challenges to persist in the near term.

Lanxess operates in multiple segments including consumer protection, specialty additives and advanced intermediates, all of which were affected by varying degrees of demand weakness during the quarter.