LANXESS increases sales and earnings in the third quarter of 2026

Specialty chemicals company LANXESS increased sales and earnings in the third quarter of 2026 — despite a persistently weak economic environment and high geopolitical uncertainties.

Sales rose by 9.6 percent to EUR 1.467 billion, compared with EUR 1.338 billion in the same quarter of the previous year. EBITDA pre exceptionals came in at EUR 139 million, an increase of 11.2 percent compared with the prior-year figure of EUR 125 million. The EBITDA margin pre exceptionals improved to 9.5 percent, up from 9.3 percent in the same quarter of the previous year.

The increase in sales was driven primarily by price increases to pass on higher raw material and energy costs. Improved demand in individual business segments, as well as cost-saving measures, had a positive impact on earnings.

Improved free cash flow

Free cash flow also improved significantly, rising from negative EUR 14 million in the third quarter of 2025 to positive EUR 48 million. The main drivers were the company’s operating performance and the successful cost-saving measures.

“In the third quarter, we posted growth despite all the headwinds. However, many of our core markets are still not experiencing a broad and sustained recovery in demand. This is particularly true for the agrochemicals, automotive, and construction industries. Nevertheless, our efforts to reduce costs are paying off and are supporting our earnings development,” said Matthias Zachert, CEO of LANXESS.

For the full year of 2026, the Group is specifying its guidance and now expects EBITDA pre exceptionals to be at the upper end of the range of EUR 450 to 500 million. The Group also expects continued positive free cash flow for the fourth quarter.

Business performance by segment

In the Consumer Protection segment, sales increased by 8.4 percent in the third quarter of 2026, rising to EUR 491 million compared to EUR 453 million in the same quarter of the previous year. EBITDA pre exceptionals amounted to EUR 67 million, down 6.9 percent from EUR 72 million reported in the same quarter of the previous year. The prior-year result had been supported by a positive income effect from a customer contract containing a minimum purchase requirement. The EBITDA margin pre exceptionals stood at 13.6 percent, compared with 15.9 percent in the same quarter of the previous year.

The Specialty Additives segment reported sales of EUR 569 million in the third quarter, up 12.7 percent from EUR 505 million recorded in the third quarter of 2025. EBITDA pre exceptionals reached EUR 71 million, an increase of 57.8 percent compared with EUR 45 million in the same quarter of the previous year. The price increases implemented in the second and third quarters contributed to the improvement in earnings. LANXESS was able to pass on higher raw material costs to customers through higher selling prices. Cost-cutting measures also had a positive impact on earnings and margins. The EBITDA margin pre exceptionals improved to 12.5 percent, compared with 8.9 percent in the same quarter of the previous year.

In the Advanced Intermediates segment, sales rose to EUR 404 million in the third quarter of 2026. This represents a 7.2 percent increase on the EUR 377 million reported in the same quarter of the previous year. EBITDA pre exceptionals reached EUR 25 million, remaining roughly on par with the previous year’s result of EUR 26 million. Higher selling prices offset the increased costs of raw materials; however, high energy costs weighed on earnings. Persistently weak demand from the construction and agricultural industries also negatively impacted earnings, as did high transportation costs due to low water levels on the Rhine River. The EBITDA margin pre exceptionals was at 6.2 percent, compared with 6.9 percent in the previous year.