Clariant (CLN) Q2 2025 earnings summary

Executive summary

• Q2 2025 sales were CHF 968 million, flat in local currency but down 8% in CHF due to FX, with growth in Catalysts and Adsorbents & Additives offsetting a decline in Care Chemicals; stable pricing maintained.

• Q2 EBITDA before exceptionals rose 3% to CHF 169 million (17.5% margin, up 200 bps YoY), driven by Catalysts and Adsorbents & Additives; H1 EBITDA before exceptionals was CHF 359 million (18.1% margin, up 130 bps YoY).

• CHF 80 million savings program underway, with CHF 12 million achieved in H1 2025 and CHF 60 million in restructuring charges booked.

• Free cash flow conversion improved to 37% (LTM), with H1 2025 operating cash flow at CHF 116 million.

• Sustainability progress includes new GHG reduction targets approved by SBTi, digital platform CLARITY™ operational at 185+ plants, and improved safety performance.

Financial highlights

• Q2 2025 sales: CHF 968 million (flat in local currency, -8% in CHF); H1 2025 sales: CHF 1.981 billion (up 1% in local currency, down 4% in CHF).

• Q2 EBITDA before exceptionals: CHF 169 million (+3% YoY, 17.5% margin); H1 EBITDA before exceptionals: CHF 359 million (+3% YoY, 18.1% margin).

• Reported EBITDA for H1: CHF 291 million (-14% YoY) due to CHF 60 million restructuring charges; net income CHF 44 million (vs. CHF 176 million prior year), impacted by restructuring and CHF 30 million impairments.

• Net debt increased to CHF 1.596 billion, with net debt/EBITDA ratio at 2.6x (2.4x before exceptionals).

• Gross margin for H1 2025 was 29.6%, slightly down from 30.7% a year ago.

Outlook and guidance

• 2025 sales growth guidance revised to 1–3% in local currency due to weak industrial production and market uncertainty.

• EBITDA margin before exceptionals confirmed at 17–18% for 2025; reported margin expected at 15.0–15.5% due to exceptionals.

• Medium-term targets: 4–6% CAGR sales growth, 19–21% EBITDA margin, and ~40% FCF conversion by 2027.

• Capex targeted at CHF 200 million for 2025; CHF 75 million restructuring charges expected.

• Ongoing macroeconomic uncertainties and trade tensions expected to weigh on demand and volumes.