LANXESS delivered higher sales and earnings in the second quarter of 2026, defying a weak economic backdrop and persistent geopolitical uncertainty, as stronger demand and higher volumes lifted performance.

 

The specialty chemicals group reported sales of EUR 1.561 billion, up 6.5 percent from EUR 1.466 billion a year earlier. EBITDA pre exceptionals rose 1.3 percent to EUR 152 million, compared with EUR 150 million in the second quarter of 2025.

 

The EBITDA margin, however, slipped to 9.7 percent from 10.2 percent a year earlier.

 

The earnings improvement was driven by stronger demand and higher sales volumes. LANXESS also largely offset rising raw material and energy costs through price increases.

 

The second-quarter figures showed a much stronger sequential performance. Sales jumped 13.3 percent from the first quarter of 2026, while EBITDA pre exceptionals surged 61.7 percent.

 

Free cash flow also swung sharply higher, reaching EUR 56 million in the second quarter after a negative EUR 29 million in the first three months of the year.

 

“In the second quarter, the expected development was confirmed, and we were able to benefit from increased demand, including temporary effects resulting from the conflict in the Middle East. For the first time in a year, we were once again able to achieve simultaneous increases in volumes and prices,” said Matthias Zachert, CEO of LANXESS. 

 

“However, there is no sign of a sustained upturn in demand in our core markets, and market conditions remain challenging. We do not expect any further economic momentum by the end of the year. In return, we expect our cost-reduction programs to deliver greater contributions than in the first half of the year.”

 

Despite the stronger quarter, LANXESS remains cautious about the outlook, saying it sees no sustained recovery in its core markets and expects economic momentum to remain limited through year-end.

 

The company nevertheless reaffirmed its full-year 2026 guidance, targeting EBITDA pre exceptionals of EUR 450 million to EUR 550 million.

 

Performance across LANXESS’s businesses was mixed.

 

The Consumer Protection segment generated sales of EUR 515 million, up 5.3 percent from EUR 489 million a year earlier. EBITDA pre exceptionals fell 6.9 percent to EUR 81 million from EUR 87 million.

 

LANXESS said the year-earlier figure benefited from an insurance reimbursement in the high single-digit million-euro range. The segment’s EBITDA margin consequently fell to 15.7 percent, from 17.8 percent.

 

The Specialty Additives segment delivered the strongest performance. Sales climbed 11.4 percent to EUR 588 million, while EBITDA pre exceptionals jumped 32.8 percent to EUR 77 million.

 

Higher demand boosted volumes and earnings across all business units. The company also passed higher raw material costs on to customers through increased selling prices. The segment’s EBITDA margin improved to 13.1 percent, from 11.0 percent a year earlier.

 

The Advanced Intermediates segment posted a more challenging quarter. Sales edged up 2.2 percent to EUR 456 million from EUR 446 million, but EBITDA pre exceptionals dropped 20.5 percent to EUR 35 million.

 

While higher selling prices offset increased raw material costs, elevated energy costs and targeted inventory reductions weighed on earnings. The segment’s EBITDA margin fell to 7.7 percent, compared with 9.9 percent in the prior-year quarter.

 

Overall, LANXESS enters the second half of 2026 with improved quarterly momentum but little expectation of a broad economic recovery. The company is instead relying increasingly on cost-cutting measures to support earnings in a still-challenging market.