Clariant has reported a mixed but resilient first quarter performance, with stable underlying sales and stronger cash flow offset by pressure on margins from geopolitical disruption and portfolio adjustments.
The specialty chemicals group posted Q1 2026 sales of CHF 918 million, down 2% in local currencies and 0.5% excluding portfolio pruning. Currency effects and portfolio actions weighed more heavily in Swiss francs, where sales fell 9.4% year-on-year.
Profitability came under pressure. EBITDA before exceptional items fell 15.9% to CHF 160.2 million, with the margin declining to 17.5% from 18.8% a year earlier. The company cited disrupted Catalysts demand linked to the Middle East conflict, reduced operating leverage, and one-off impacts as key drivers.
“In the first quarter of 2026, Clariant delivered flat underlying sales, excluding the effects of our proactive portfolio pruning measures. The EBITDA margin of 17.5 % before exceptional items was 130 basis points lower year on year against a strong comparison base, with the Middle East conflict impacting our Catalysts business, in particular.
"We achieved a twelve-percentage point improvement in free cash flow conversion to 54 % and are on track to deliver full run-rate savings of CHF 80 million from our performance improvement program by year end. This is one year ahead of our commitment.
"We continued to drive innovation with an increased innovation sales ratio of 19.9 % and we received six prestigious innovation awards at in-cosmetics Global in Paris and Chinaplas in Shanghai,” said Conrad Keijzer, Chief Executive Officer of Clariant.
Despite weaker earnings, cash generation strengthened significantly. Free cash flow conversion rose to 54% on a trailing 12-month basis, up from 42% at the end of 2025, driven by tighter working capital control and disciplined capital spending.
Innovation performance remained a bright spot. Innovation-linked sales rose to 19.9% of total sales, supported by new product launches in personal care, additives, and sustainable materials, alongside multiple industry awards at global trade events.
The company also continued progress on sustainability metrics, reporting a further reduction in Scope 1 and 2 emissions to 0.42 million metric tons and stable Scope 3 emissions, reflecting increased use of renewable electricity.
Looking ahead, management held its full-year 2026 guidance unchanged despite a more volatile environment.
“Our guidance for 2026 remains unchanged, with sales expected to be around 2025 levels in local currency and an EBITDA margin of around 18 % before exceptional items. The Middle East conflict is mainly impacting our Catalysts customers in the Middle East and Asia, with sales now expected to be below the prior year.
"At the same time, we expect growth in Adsorbents & Additives, as well as continued slight underlying growth in Care Chemicals, despite the Middle East impacts in Oil Services and increasing risks on the overall demand environment. To mitigate the inflation in raw materials and energy, we activated our proven value-based price management and further continue our focus on cost initiatives.
"By leveraging our global network and employing proactive logistics we provide continued supply for our customers,” Conrad Keijzer added.
Clariant said it remains on track to deliver CHF 80 million in cost savings under its performance improvement program, with CHF 9 million already achieved in Q1 and the remainder expected during 2026.
While Catalysts continues to face demand headwinds from geopolitical tensions, the company expects growth in Adsorbents & Additives and modest improvement in Care Chemicals, supported by pricing discipline and cost controls.
Clariant reaffirmed its commitment to medium-term targets through 2027, emphasizing resilience, innovation, and cash generation as key pillars in an uncertain macroeconomic backdrop.
