LANXESS -
Q1 2026 results
May 7, 2026
Matthias Zachert, CEO I Oliver Stratmann, CFO
Agenda
Leveraging a strong platform for earnings recovery
We are taking action
Review Q1 2026 and outlook
3
Financial and business details Q1 2026
LANXESS built a portfolio with three strong pillars - laying the strategic foundation for future growth
Portfolio transformation achieved in a timely and focused manner
Consumer Protection Specialty Additives Advanced Intermediates
Setup for operational success:
Leading among the top 3 globally in growing niche markets
Balanced portfolio without dependency on a single industry
On track to a solid balance sheet and high cash flow
Strong platform to grow in the US & Asia
4
Leading ESG position with goals embedded in management incentive and financing
Balanced portfolio with strategic focus on consumer related markets
Overall balanced portfolio structure with strong mid-term upcycle potential
Sales share in %
Consumer & Animal CareMobility
Chemicals
Agro
Construction
Ind. & others
10% 01
40% 02
15%
10%
10%
15%
20%
15%
15%
15%
15%
20%
01Strategic M&A backed growth into
consumer related end markets
02
Mobility (more cyclical Auto & Tires)
exposure significantly reduced
2016 2025
5 All figures rounded
Within our production network, we have three global business units with strong German roots and significant potential
Advanced Industrial Intermediates
Inorganic Pigments
Saltigo
Leadership positions with 25-23% market share
Strong "Verbund structure"
Only Western player in critical markets
35% global market share
Technology leader
Lowest industrial cost curve
#1 CDMO in Europe
Leading technologies
Healthy underlying trends
6
CMDO = Contract Development and Manufacturing Organization
Currently tough market environment,
however underlying business position is solid
Business unit: Advanced Industrial Intermediates
End market outlook: Business catalysts:
Burdened by: Overcapacities & Energy costs
Other
Energy
Constr.
Agro
Chemic
Unique market positions in a consolidating environment Evolving trend to foster Western supply
Material exposure of ~60% to recovery markets
Potential acceleration of Chinese anti-involution
Mid-term structural support by anti-dumping measures
Focus on active cost management and asset consolidation
Selectively drive innovations for critical European
base chemicals
Strategy focus:
7
Market split
Current industry condition
Mid-term industry condition
One of the strongest platforms but strongly dependent on construction rebound
Business unit: Inorganic Pigments
Economies of scale: Business catalysts:
Illustrative comparison
Material economies of scale leverage
Substantial recovery potential due to ~60% construction exposure Considerable exposure in Europe and the US as only Western player Material European infrastructure and real estate backlog
Effective governmental spending, e.g. German stimuli
Strategy focus:
Leverage economies of scale with construction recovery Portfolio innovation
8
LANXESS Competitor Competitor Others
Portfolio rebalancing & cutting-edge technology
Business unit: Saltigo
Portfolio rebalancing:
Mid-term growth perspectives
Attractive growth opportunities in Pharma and Specialties
Agrochemicals
Pharma & Specialties
Business catalysts:
Leading technology as #1 European custom manufacturer Focus on production efficiency and asset streamliningModern Active Ingredients pipeline
Reshoring - Focus on European supply
Best in class managing increasing regulatory complexity
Focus on innovative Pharma and Specialties solutions
beyond agro
Active cost management and asset consolidation
9
Strategy focus:
Iran conflict: Immanent risks and chances hard to predict
LANXESS assumption on (short-term) segment impact is heterogeneous
10
Consumer Protection Specialty Additives Advanced Intermediates
Lower upside potential
Moderate upside potential
Moderate to high upside potential
Middle East conflict quickly changed market conditions asking for swift and agile business reactions
Competitive landscape, supply chain & price environment led to several effects and actions
Less competitive pressure from Asia
e.g. in upstream
11
chemicals
Secured supply chains based on European sources
Quick reaction through immediate price increases
Seasonal inventory build-up only
Leading ESG rating providers continue to honor LANXESS'
performance
We are rewarded for our efforts on sustainability that go beyond the must-haves
A
BBB
AA AA AA AA
C
B-
B-
B
2nd highest category for 4th time
Convincing governance set-up and climate strategy
Prime status since 2020; B rating since 2024
Top 10%
In total, 9 times on Climate A list (among top 2%), 7th time in a row
4th time A- rating for water disclosure
Top 10% in DJSI World (13th year) #1 in DJSI Europe (7th year) Sustainability Yearbook member
Medium risk - 20.2 Points
6th percentile in specialty chemicals
12
7th percentile in chemicals (572 companies in total)
Agenda
Leveraging a strong platform for earnings recovery
We are taking action
Review Q1 2026 and outlook
13
Financial and business details Q1 2026
Targeting further €150 m structural savings by the end of
2028
Actively adjusting our cost structure
…implementation by:
Reduction of ~550 positions worldwide across all functions
Fluctuation & demographics supportive
Adjustments in production network3
FORWARD! More to come…
[in € m] 2026 2027 2028
Savings ~65 ~55 ~30 Cash Outs1 ~25 ~15 ~10
~€150 mby the end of 2025
FTEs2 ~550
~€50 m + ~€100 mby the end of 2028
14
1 Additional €10 m cash-outs already included in 2025
2 FTEs: full-time equivalents
3 As announced in Q2 2025
Debt reduction remains priority despite persisting economic challenges
Target to restore investment grade rating until 2028
Net debt in € m
2,500
2,000
1,500
Net debt / EBITDA pre
4.0x
3.5x*
Operational Levers
Initial signs of possible recovery in the construction industry at the earliest during the second half of the year
Continued cost streamlining
<2.5x*
Tight working capital management targeting structural improvement
Strategic Levers
Sale of Envalior stake
2028
Additionally, pro-rata redemption of loan to
2024 2025 2025 incl.
shareholder loan
Envalior** (+ accrued interest)
15
*after deduction of Envalior shareholder loan (€261 m) 31.12.2025 / EBITDA pre FY2025 €510 m ** In the form of a pro-rata sale of financial asset from LANXESS to Advent
Our structurally improved business platform requires less capex
Capex needs have significantly been reduced since 2019
300-350 Growth Maintenance | |
2019 2020 2021 2022 2023 2024 2025 | for nearer future |
508 456 479
407
326 320 319
16
Sustainable lower capex level, additional short- to mid-term benefit from ample capacity headroom
Diligently managing net working capital - balancing profitability and inventory control
Significant reduction of net working capital since peak in Q3 2022
2,200
2,000
1,800
1,600
1,400
1,200
1,000
30%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2020
2021
2022
2023
2024
2025
2026
28%
26%
24%
22%
20%
18%
NWCLower net working capital as lever for cash generation
17
*Net working capital to sales ratio
As of 30th September 2024, net working capital reported without BU URE (Reported as "Assets held for sale"); Underlying Working Capital including BU URE remains flat
Agenda
Leveraging a strong platform for earnings recovery
We are taking action
Review Q1 2026 and outlook
18
Financial and business details Q1 2026
Weak start of the year but focus on cashflow remains
[in € m]
Q1 EBITDA pre
94
133
Q1 2025 Q1 2026
Main drivers:
Lower volumes
Adverse FX effect
19
Negative portfolio effect
Q1 Free cash flow
-29
-111
Q1 2025 Q1 2026
Improved
Seasonally negative
Net working capital
1,500
1,343
Q1 2025 Q1 2026
Improved
yoy with seasonal
sequential increase
Net financial debt
2,023 2,085
Q4 2025 Q1 2026
Minimal increase
vs. Q4 2025
[€ m] FY 2024 FY 2025 Δ
Sales 6,366 5,673 -11%
EBITDA pre 614 510 -17%
Margin 9.6% 9.0%
Capex 320 319 0%
- 3%
- 2%
- 5%
- 4%
- 14%
Price
Volume
FX
Portfolio Total
Sales vs. prior year Q1
Visible increase in orders on hand in March in most businesses coming from exceptionally low levels in first two months
Mixed picture on volume development: Additives segment
with overall volume growth, construction still weak
− Low utilization intensified by winter storms and plant turnarounds weighed on earnings and margin
− Unfavorable FX development and URE portfolio effect
weigh on sales and earnings
20
LANXESS Group: Weak start of the year gained momentum in March
[€ m] | Q1/2025 | Q1/2026 | Δ |
Sales | 1,601 | 1,378 | -14% |
EBITDA pre | 133 | 94 | -29% |
Margin | 8.3% | 6.8% | |
Capex | 45 | 41 | -9% |
FY 2026 guidance confirmed:
EBITDA pre expected in €450 - 550 m range
Our view on economic environment
Significant macro-economic uncertainties persist, intensified by Middle East conflict
Positive effect from German infrastructure program on construction end industry expected to start earliest in H2 2026
FX headwinds throughout the year vs. PY
LANXESS
outlook
Considerations for FY:
− Continued cost streamlining to mitigate
inflation, savings back-end loaded
Considerations for Q2:
− Momentum for improved performance gained traction starting in March
− Shift in competitive landscape due to Iran conflict beneficial but might be temporary
− Price increases expected to counteract raw material price inflation
− Q2 EBITDA pre expected in €130-150m
21
range
Agenda
Leveraging a strong platform for earnings recovery
We are taking action
Review Q1 2026 and outlook
22
Financial and business details Q1 2026
Consumer Protection: Q1 still challenged; prior-year quarter supported by one-time effect
- 2%
- 4%
- 5%
- 11%
Price
Volume
FX
Total
Sales vs. prior year Q1
[€ m] | Q1/2025 | Q1/2026 | Δ |
Sales | 513 | 458 | -11% |
EBITDA pre | 73 | 62 | -15% |
Margin | 14.2% | 13.5% | |
Capex | 10 | 10 | 0% |
− Lower prices due to pass-through of input cost deflation and ongoing price pressure particularly in agro; effects from price increases and anti-dumping measures to come
− Lower volumes in most businesses (i.e agro and
construction); strong contribution from water treatment
− Utilization remained low affecting earnings and margin; first increases of customer orders towards end of quarter
[€ m] FY 2025 FY 2026 Δ
Sales 513 458 -11%
EBITDA pre 73 62 -15%
Margin 14.2% 13.5%
Capex 10 10 0%
− Negative FX effect biggest driver for sales decline (mainly
USD)
− Last year's Q1 earnings supported by insurance
23
compensation (high single-digit € m)
[€ m] FY 2025 FY 2026 Δ
Sales 545 521 -4%
EBITDA pre 52 44 -15%
Margin 9.5% 8.4%
Capex 13 12 -8%
- 2%
+ 5%
- 7%
- 4%
Price
Volume
FX
Total
Sales vs. prior year Q1
− Slightly lower prices in line with pass-through of lower raw material costs for all businesses
+ Increased volumes mainly in lubricants and brominated
flame retardants
+ Positive volume momentum in all businesses started in March
− Significant FX effect (mainly weaker USD)
overcompensated volume increase
− Earnings held back by impacts from US winter storms
24
Specialty Additives: Positive volumes but negative FX effect held back earnings development
[€ m] | Q1/2025 | Q1/2026 | Δ |
Sales | 545 | 521 | -4% |
EBITDA pre | 52 | 44 | -15% |
Margin | 9.5% | 8.4% | |
Capex | 13 | 12 | -8% |
[€ m] FY 2025 FY 2026 Δ
Sales 476 396 -17%
EBITDA pre 40 27 -33%
Margin 8.4% 6.8%
Capex 18 18 0%
25
Advanced Intermediates: Weak quarter as expected
- 4%
- 9%
- 3%
- 17%
Price
Volume
FX
Total
Sales vs. prior year Q1
− Lower prices due to pass-through of lower input costs and competitive pressure from Asia
+ Positive effects from recent price increases expected to
materialize especially in BU AII in Q2
− Lower volumes due to persistently weak demand, Asian competition and closure of CXO plant
− Ongoing low utilization, intensified by major turnaround in
aromatic network, weighed on results
[€ m] | Q1/2025 | Q1/2026 | Δ |
Sales | 476 | 396 | -17% |
EBITDA pre | 40 | 27 | -33% |
Margin | 8.4% | 6.8% | |
Capex | 18 | 18 | 0% |
P&L Q1: Decreased earnings mainly due to unfavorable FX-development and absence of Urethane Business
P&L [€ m] | Q1/2025 | Q1/2026 | yoy | |||
Sales | 1,601 | 1,378 | -14% | |||
Cost of sales | -1,279 | -1,116 | 13% | |||
Selling | -226 | -208 | 8% | |||
G&A | -64 | -56 | 13% | |||
R&D | -29 | -26 | 10% | |||
EBIT | -23 | (-1%) | -40 | (-3%) | -74% | |
Financial result | -38 | -96 | - | |||
Net Income | -57 | (-4%) | -141 | (-10%) | - | |
Adjusted EPS [€] | 0.23 | -0.50 | - | |||
EBITDA | 112 | (7%) | 81 | (6%) | -28% | |
thereof except. | -21 | (1%) | -13 | (1%) | -38% | |
EBITDA pre except. | 133 | (8%) | 94 | (7%) | -29% | |
26 | ||||||
Lower sales mainly due to unfavorable FX and portfolio effect (Urethanes business)
Lower selling expenses mainly due
to lower volumes
Reduction of all cost items, helped by cost saving measures and FX development
Financial result driven by lower Envalior at-equity result and shareholder loan valuation
Earnings and margin decrease mainly as a result of unfavorable FX development, absence of Urethane Systems business and lower volumes
Lower profit before tax due to lower at-equity and operating result
At-equity result reflects mainly Envalior result; closure of glass fiber plant
Financial losses reflect non-cash items in financial result: mainly valuation of Envalior loan (lower fair value due to increased interest environment)
Changes in working capital reflect a normal seasonal pattern; still tightly managed
Changes in other assets & liabilities in Q1 `26 mainly due to personnel- related provisions and VAT reimbursement
Cash flow [€ m] | Q1/2025 | Q1/2026 | ||
Profit before tax | -61 | -136 | ||
Depreciation & amortization | 135 | 121 | ||
Result from investments accounted for using the 31 | 64 | |||
Financial losses | 7 | 25 | ||
Income taxes | 5 | 7 | ||
Changes in working capital | -181 | -126 | ||
Changes in other assets & liab. | -2 | 57 | ||
Operating cash flow | -66 | 12 | ||
Capex | -45 | -41 | ||
Free cash flow | -111 | -29 | ||
27 | Free cash flow = Operating cash flow minus Capex | |||
Cashflow statement reflects disciplined NWC management despite seasonal build-up in uncertain times
equity method
Continued strong equity ratio
Balance sheet [€ m] | 31.12.2025 | 31.03.2026 |
Total assets | 7,748 | 7,750 |
Equity | 3,500 | 3,498 |
Equity ratio | 45% | 45% |
Net financial debt1 | 2,023 | 2,085 |
Net financial debt after deduction of ENV shareholder loan | ALIOR 1,762 | 1,840 |
Pension provisions | 421 | 373 |
Net working capital | 1,200 | 1,343 |
Total assets and equity stable: Positive FX effects compensated reduced net income
Equity ratio remains strong
Net financial debt slightly up versus year end 2025
Lower pension provision given an increase in interest rates esp. in Germany
Seasonal working capital increase
28
1) Deducting cash, cash equivalents, near cash assets
Q1 2026: FX & portfolio driven lower sales in weak demand environment
Sales [€ m]
476
396
521
545
458
513
-14%
1,601*
CP -11%
RCH
PLA
LAB
Specialty Additives
1,378*
Sales share [€ m]
EBITDA pre [€ m]
F&F
MPP
LPT
SGO
Consumer Protection
-39
-32
All other
segments
94
133
-29%
73
62
52
44
27
40
CP
-15%
SA
AI
-4%
-17%
SA
AI
-15%
-33%
AII
IPG
Advanced Intermediates
Q1 2025 Q1 2026
Q1 2025 Q1 2026
29
* Total group sales including all other segments
Q1 2026: Mainly volume-driven sales decline
Q1 2026 sales by region [%] Regional development of sales [€ m]
Americas
33%
29%
Asia / Pacific
19%
19%
Germany
Asia/Pacific
400
471
457
555
266
291
Americas
EMEA
(excl. Germany)
Germany
1,601
284
-9%
-18%
-15%
-10%
1,378
255
EMEA
30
(excl. Germany)
Q1 2025 Q1 2026
Lower exceptional items (on EBIT), mainly related to IT-projects
Excep. | thereof D&A | Excep. | thereof D&A | |
-1 | 0 | -4 | -1 | |
-8 | 0 | -6 | -0 | |
-12 | 0 | -4 | -0 | |
-21 | 0 | -14 | -1 |
[€ m] Q1 2025 Q1 2026
Strategic realignment and restructuring
(incl. FORWARD!)
Strategic IT-projects
M&A, digitalization and others
31
Total
Price increases in Q1
32
to actively counter-steer increasing raw material and energy costs across all segments
Product / Portfolio | Business Unit (Segment) Price increase | Announcement |
Lewatit® ion exchange resins | Liquid Purification Technologies +6% to +8% (CP) Advanced Industrial Intermediates avg. of +40% (AI) Inorganic Pigments (AI) up to +20% up to +30% Material Protection Products (CP) for active ingredients, preservatives and disinfectants; selectively higher up to +35% Polymer Additives (SA) (Flame Retardants & Specialty Additives) & up to +50% (Plasticizers) Lubricant Additives (SA) +50% or more Advanced Industrial Intermediates avg. of +20% (AI) Advanced Industrial Intermediates avg. of +20% (AI) Rhein Chemie (SA) +15% to +50% Advanced Industrial Intermediates +€100/t (AI) | 2026-04-07 |
Sulfur-based products | 2026-03-30 | |
Inorganic pigments | 2026-03-25 | |
Microbial Control products | 2026-03-24 | |
Polymer Additives portfolio | 2026-03-23 | |
Diphenylamine & alkylated diphenylamine | 2026-03-17 | |
Trimethylolpropan | 2026-03-13 | |
1,6-Hexanediol | 2026-03-13 | |
Rubber Additives | 2026-03-11 | |
Adipic acid | 2026-01-26 |
Appendix
33
Housekeeping items 2026
Outlook FY 2026 (in € m)
Capex | ~330 | |||
Operational depreciation | ~340 |
| ||
All other segments (EBITDA pre) | -140 to -150 | |||
Exceptional expenses | ~40 to 60 |
| ||
FX sensitivity | ~3 |
| ||
Savings | ~65 |
| ||
34 | ||||
Maturity profile well balanced
Actively managed - ample liquidity available (as of March 2026)
Long-term financing All group financing executed without financial covenants
secured
All group financing executed without financial covenants
Next maturity in October 2026
800
600
400
200
Bond
2026 2027 2028 2029 2030 2030+
€500 m
1.00%
Bond
€500 m
0.00%
Bond
€600 m
1.75%
Bond
€600 m
0.625%
Ø interest 1.00%*
Refinancing secured by:
cash and cash equivalents
available
highly liquid bond market
available credit lines
0
-200
-400
-600
-800
'27 '28
'26
Private placement
€100 m
3.95%
Committed credit lines
€550 m
'29 '30 '30+
Sustainable revolving credit facility
€800 m
-1000
Cash & cash equivalents, near cash assets Financial liabilities
Committed credit lines Sustainable revolving credit facility35
* 1.2% incl. financial leases
No Envalior acquisition of Advent in 2026, however LXS with unconditional right to sell 50% of its stake in 2028
Contractually fixed calculation of valuation for all years
Defined next steps 2027 and 2028:
2026
Advent declares not to be able to finance acquisition of LANXESS stake in Envalior*
2027
Advent's right to acquire LANXESS stake on 2026 conditions
2028
LANXESS's unconditional* right to sell 50% of stake; based on March 2028 LTM EBITDA
Additionally, pro-rata redemption of loan to
Envalior** (+ accrued interest)
Envalior business drivers:
Market recovery, further deliver of synergies and competitor consolidation!
36
Advent refers to Advent HoldCo (an investment entity of Advent International) * Referring to contractual financing condition ** In the form of a pro-rata sale of financial asset from LANXESS to Advent
Management is significantly invested and in the shoes of investors
Overview of managers' purchases since FY 2024 reporting (March 14, 2024)
Name | Function | Date | Ø Price | Total quantity | Total volume | |
Matthias Zachert | CEO | March 14 & 15, 2024 (two purchases) | 24.36 € | 16,505 shares | 402,070.84 € | |
Hubert Fink | Board member | March 14 & 15, 2024 (two purchases) | 24.49 € | 9,056 shares | 221,803.62 € | |
Frederique van Baarle | Board member | February 13, 2025 | 30.37 € | 5,070 shares | 153.950,55 € | |
Name | Function | Total number of shares |
Matthias Zachert | CEO | 102,635 |
Dr. Hubert Fink | Board member | 39,856 |
Frederique van Baarle | Board member | 13,056 |
Oliver Stratmann | CFO | 10,567 |
Total holdings by active members of the Board of Management exceeds required
37
value
Aiming for investment grade rating
LANXESS continues to work consistently on reducing its financial debt and aims to return to solid investment grade rating figures as quickly as possible
Credit rating history | |||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | |||||
Baa2/ stable | Baa2/ stable | Baa2/ stable | Baa3/ negative | Baa3/ negative | Baa3/ negative | Ba1/ negative | |||||
August 2020 | August 2021 | July 2022 | November 2023 | November 2024 | November 2025 | March 2026 | |||||
BBB+/ stable | BBB+/ stable | BBB+/ stable | BBB+/ negative | BBB/ negative | BBB/ stable | BBB/ negative | |||||
September
38
2020
August 2021 July 2022 June 2023 February 2024 August 2025 March 2026
Contact details Investor Relations
Visit the
IR website
Eva Husmann (Frerker)
Head of Investor Relations
Mob.: +49 151 7461 2969
39
E-Mail: eva.husmann@lanxess.com
Sophie Brandt
ESG Investors and Ratings
Mob.: +49 151 7461 3158
E-Mail: sophie.brandt@lanxess.com
Catharina Kaiser
Institutional Investors / Analysts
Mob.: +49 151 7461 2913
E-Mail: catharina.kaiser@lanxess.com
Thomas Kaiser
Institutional Investors / Analysts
Mob.: +49 151 7461 3890
E-Mail: thomas.kaiser@lanxess.com
Jens Ussler
Institutional Investors / Analysts
Mob.: +49 151 7465 0520
E-Mail: jens.ussler@lanxess.com
Abbreviations
§
Consumer Protection
MPP Material Protection Products
F&F Flavors & Fragrances
SGO Saltigo
40
LPT Liquid Purification Technologies
Specialty Additives
PLA Polymer Additives
LAB Lubricant Additives Business
RCH Rhein Chemie
Advanced Intermediates
AII Advanced Industrial Intermediates
IPG Inorganic Pigments
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Lanxess AG published this content on May 08, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 08, 2026 at 06:38 UTC.
