Clariant (CLN) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales reached CHF 1.013 billion, up 1% in local currency, with stable CHF performance and strong contributions from Care Chemicals, Adsorbents & Additives, and Lucas Meyer Cosmetics.

• EBITDA before exceptional items rose 3% to CHF 190 million, with margin up 70 bps to 18.8%, driven by cost savings and strong business unit performance.

• CHF 38 million restructuring charges booked in Q1 as part of a CHF 75 million program; CHF 175 million cost savings program completed, with CHF 80 million new savings program underway.

• Lucas Meyer Cosmetics contributed CHF 25 million in sales, high profitability, and won six innovation awards.

• CFO transition announced: Bill Collins to retire, Oliver Rittgen appointed as successor effective August 1, 2025.

Financial highlights

• Q1 2025 sales: CHF 1.013 billion (+1% local currency, stable in CHF); pricing +1%, volume -2%, scope +2%.

• Group EBITDA before exceptional items: CHF 190 million (+3% YoY), margin 18.8% (+70 bps YoY).

• Reported EBITDA: CHF 152 million (-12% YoY), margin 15.0%, impacted by CHF 38 million restructuring charges.

• Sales by segment: Care Chemicals CHF 599 million (+6% LC), Catalysts CHF 162 million (-13% LC), Adsorbents & Additives CHF 252 million (+2% LC).

• Lucas Meyer Cosmetics delivered CHF 25 million in sales with high profitability (EBITDA margin 45-49%).

Outlook and guidance

• 2025 guidance confirmed: local currency sales growth at lower end of 3%-5% range, EBITDA margin before exceptional items 17%-18%.

• Reported EBITDA margin for 2025 expected at 15%-15.5% due to CHF 75 million restructuring and CHF 20 million other exceptional items.

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

• Capex targeted at CHF 210-220 million for 2025.

• Guidance assumes no further escalation in trade tensions.