In fiscal year 2024, LANXESS significantly increased its earnings despite the difficult global economic situation: EBITDA pre exceptionals climbed by 19.9 percent to € 614 million, up from € 512 million in the previous year. In particular, higher capacity utilization and significantly lower costs as a result of the “FORWARD!” action plan contributed to the increase in earnings.

Although nearly all business units were able to increase their sales volumes, Group sales decreased by 5.2 percent from € 6.714 billion in the previous year to € 6.366 billion. This was mainly due to lower sales prices resulting from reduced raw material and energy costs. The EBITDA margin pre exceptionals rose to 9.6 percent from 7.6 percent in the previous year.

“We have defied the economic and geopolitical headwinds and significantly increased our earnings from our own resources. This shows that our structural measures are working. They will continue to pay off in the current year. We therefore remain confident of achieving further growth by 2025, even if a broad-based recovery in global demand is not in sight,” says Matthias Zachert, Chairman of the Board of Management of LANXESS AG.

For the current fiscal year 2025, LANXESS expects the economic and geopolitical environment to remain challenging. Nevertheless, the Group expects a portfolio-adjusted increase in EBITDA pre exceptionals of around 10 percent for the full year, also due to the ongoing effects of the “FORWARD!” action plan. This corresponds to a reported EBITDA pre exceptionals of between € 600 and 650 million, as the earnings contribution from the Urethane Systems business will only be included for the first quarter of 2025. LANXESS expects the business to be divested in April 2025. In 2024, the Urethane Systems business unit generated EBITDA pre exceptionals of around EUR 50 million.

For the first quarter of 2025, the Group expects EBITDA pre exceptionals to be 25 to 35 percent higher than in the prior-year quarter.

LANXESS was able to reduce net financial debt by 4,7 percent from € 2.498 billion at the end of the previous year to € 2.381 billion in 2024. This was mainly due to the strong cash flow generation from operating activities. Free cash flow amounted to EUR 188 million in 2024.

With the “FORWARD!” action plan introduced in the summer of 2023, LANXESS is counteracting the effects of the economic downturn. Through structural measures, LANXESS plans to permanently reduce its annual costs by around EUR 150 million by 2025. EUR 110 million of these savings have already been realized in 2024, EUR 20 million more than originally planned.

Guidance for 2025: EBITDA pre exceptionals between € 600 to 650 million; corresponds to operational growth of around 10 percent on an adjusted basis