LANXESS’ results in the second quarter of 2025 was impacted by a weak global market environment. The specialty chemicals company achieved an EBITDA pre exceptionals of €150 million, which is a 17.1 percent decline compared with the figure of €181 million from the same quarter last year.

Weaker demand in general was accompanied by lower sales volumes in all segments. The sale of the Urethane Systems business unit effective April 1, 2025, also contributed significantly to the decline in earnings. Second-quarter sales amounted to €1.466 billion, down 12.6 percent on the prior-year figure of €1.678 billion.

“The economic environment has deteriorated significantly again in recent months. Additionally, ongoing tariff discussions with the U.S. are causing considerable market uncertainty and exacerbating the situation for the European chemical industry. There is currently no improvement in sight for the economic situation,” says Matthias Zachert, CEO of LANXESS.

“For us, this means continuing to focus fully on achieving the best possible positioning in the market, as well as in terms of costs, structures, and processes. When the economy picks up again, we will be ready and able to meet the additional demand much more efficiently and profitably.”

The EBITDA margin pre exceptionals was 10.2 percent in the second quarter, compared with 10.8 percent in the same period last year.

Due to the expected continued weak demand for the remainder of the year, LANXESS is adjusting its guidance for fiscal year 2025 and now anticipates an EBITDA pre exceptionals of between €520 million and €580 million. This includes a burden of €10 million related to supply restrictions from a chlorine supplier. The Group had previously anticipated earnings of between € 600 million and €650 million.

To actively counteract the global weakness in demand, LANXESS is further optimizing its global production network. The Group has already brought forward the closure of its hexane oxidation facility at the Krefeld-Uerdingen site to the end of the second quarter of 2025.

LANXESS also plans to streamline its global network of aroma chemicals plants and shut down production at its Widnes site (UK) in the course of 2026. Due to high costs, the company can no longer operate the Widnes site competitively.

At the El Dorado site (USA), LANXESS plans to increase efficiency of bromine production. These  measures are expected to result in permanent annual savings of €50 million from the end of 2027.