By: ICN Bureau
Last updated : May 07, 2026 6:11 pm
Conflict in the Middle East alters market conditions
The first quarter of 2026 was challenging for specialty chemicals group LANXESS, driven by a persistent economic downturn, geopolitical uncertainty, and the impact of previous portfolio divestments. Consequently, Q1 2026 sales dropped 13.9% to €1.378 billion, down from €1.601 billion in the same period last
EBITDA pre-exceptionals fell 29.3% to €94 million (Q1 2023: €133 million), resulting in a margin contraction to 6.8% from 8.3% in the prior-year quarter.
Weak market conditions, coupled with lower raw material costs and intense competition from Asia, forced selling prices down. Additionally, results were negatively affected by foreign exchange rates and the divestiture of the Urethane Systems business on April 1, 2025.
“The start of the year was weak, but since March we have seen a slight positive momentum. Due to the conflict in the Middle East, the supply chains of many Asian competitors have been disrupted, causing customers to turn back to European suppliers such as LANXESS. Supply capability is currently a significant competitive advantage. At the same time, we have raised prices for many of our products to pass on the increased costs of raw materials, energy and logistics,” said Matthias Zachert, CEO of LANXESS.
LANXESS expects these market conditions to persist for at least the coming months and anticipates its EBITDA pre exceptionals in the second quarter of 2026 to be significantly higher than in the first quarter, reaching a range of €130 million to €150 million.
For the full year 2026, the Group confirms its March guidance and continues to expect EBITDA pre exceptionals of between €450 million and €550 million.