Clariant (CLN) investor relations material

Executive summary

• Achieved third consecutive year of EBITDA margin improvement, reaching 17.8% before exceptional items, up 180 basis points year-over-year, driven by performance improvement programs and cost productivity.

• FY 2025 sales were CHF 3.915 billion, flat in local currency but down 6% in Swiss francs due to currency headwinds; strong price management and stable volumes.

• Free cash flow conversion improved to 42%, meeting medium-term targets ahead of schedule.

• Significant progress in sustainability, with SBTi-approved GHG targets and top 1% ESG ratings.

• Net loss of CHF 41 million for FY 2025, mainly due to a CHF 230 million non-cash translation adjustment from Venezuela divestment and portfolio pruning.

Financial highlights

• Sales: CHF 3.915 billion (0% local currency growth, -6% in CHF year-over-year).

• EBITDA before exceptional items: CHF 697 million (margin 17.8%, up 180 bps year-over-year).

• Free cash flow: CHF 273 million, up from CHF 209 million in 2024.

• Net debt/EBITDA before exceptional items improved to 2.03x.

• Proposed stable shareholder distribution of CHF 0.42 per share.

Outlook and guidance

• 2026 sales in local currency expected to be flat, with EBITDA margin before exceptional items targeted at around 18%.

• Portfolio pruning expected to reduce top-line by ~1% (Group) and 2% (Care Chemicals).

• Medium-term targets reaffirmed: 4–6% local currency sales growth, 19–21% reported EBITDA margin, ~40% free cash flow conversion by 2027.

• Cost savings from performance improvement program to be delivered by 2027.

• Macroeconomic challenges and inflationary pressures expected to persist.