Specialty chemicals company LANXESS has started the 2025 fiscal year with a significant increase in earnings: EBITDA pre exceptionals rose by 31.7% from €101 million to €133 million – despite the weak global economic environment. The Group improved its earnings in all segments, mainly due to better capacity utilization and cost savings as part of the “FORWARD!” action plan.

Sales in the first quarter remained stable at €1.601 billion, on a par with the prior-year figure of €1.607 billion. LANXESS increased sales volumes in most businesses, although lower sales prices had a negative impact on revenues.

“We have made a solid start to the new fiscal year – despite all the adversities in the economic and geopolitical environment. Our more efficient positioning and improved cost situation are now paying off,” said Matthias Zachert, Chairman of the Board of Management of LANXESS AG. “The situation around us has continued to escalate since the beginning of the year. The U.S. government’s new trade policy has shaken the markets and exacerbated the already high level of uncertainty. Combined with the ongoing weakness of the economy, this makes the situation even more challenging for companies.”

Net income for the first quarter of 2025 was minus €57 million, compared with minus €98 million in the same period last year.

LANXESS confirms its guidance for the 2025 fiscal year and continues to expect EBITDA pre exceptionals of between €600 and 650 million. For the second quarter of the fiscal year 2025, LANXESS anticipates an increase in earnings compared with the first quarter of 2025. However, compared with the same quarter of the previous year, the Group expects earnings to decline, primarily because the earnings contribution from Urethane Systems will no longer be included.

Sale of the Urethane Systems business completed

On 1 April 2025, LANXESS sold its Urethane Systems business to Japan’s UBE Corporation, thus divesting its last remaining polymer business. The transaction was the last major step in the company’s portfolio transformation towards specialty chemicals. LANXESS will use the proceeds from the sale to redeem its €500 million benchmark bond due May 2025 and further reduce its debt.