Lanxess (LXS) investor relations material

Executive summary

• Sales increased 6.5% year-over-year in Q2 2026 to €1,561 million, driven by higher volumes and prices, with sequential EBITDA pre exceptionals up 61.7% to €152 million and strong free cash flow generation.

• Operational performance strengthened by improvements in both pricing and volume, marking Q2 2026 as a turning point, though net income remained negative at minus €53 million.

• Structural cost adjustments and restructuring are underway, particularly in Saltigo, to align capacity with future demand and reduce exposure to agrochemicals, targeting €20 million annual savings from 2028.

• Adjusted EPS was €0.51 in Q2, down from €0.59, and €0.01 for H1, down from €0.82.

• Free cash flow improved to €56 million in Q2 2026 from €31 million in Q2 2025.

Financial highlights

• Q2 2026 EBITDA pre exceptionals rose to €152 million, up 62% sequentially, with a margin of 9.7%; sales increased 6.5% year-over-year to €1,561 million.

• Net income for Q2 was -€53 million, down from -€45 million in Q2 2025.

• Free cash flow turned positive at €27 million in H1, compared to minus €80 million in the prior year.

• Net financial liabilities were €2,049 million at June 30, 2026, nearly stable versus year-end.

• EUR 500 million bond issued with a 5-year tenor and 4.375% coupon, replacing an October maturity; order book was several times oversubscribed.

Outlook and guidance

• Full-year 2026 EBITDA pre exceptionals guidance confirmed at €450–550 million, with Q3 expected at €130–150 million.

• No expectation of further economic momentum in core markets for the remainder of 2026; construction sector recovery expected in 2027.

• Cost-reduction programs expected to contribute more in the second half of the year.

• No significant de-stocking expected in Q3; order book and demand momentum remain steady.

• Cost and efficiency programs are expected to yield sustainable savings.