Clariant (CLN) Q4 2025 earnings summary

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.

• Full-year sales were CHF 3.915 billion, flat in local currency but down 6% in Swiss francs due to currency headwinds; Q4 sales up 1% in local currency.

• Free cash flow conversion improved to 42%, meeting or exceeding medium-term targets.

• Significant progress in sustainability, with SBTi-approved GHG targets, top-tier ESG ratings, and top scores in the Carbon Disclosure Project.

• 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

• FY 2025 EBITDA before exceptional items increased 5% to CHF 697 million, margin up 180 bps to 17.8%; Q4 EBITDA before exceptionals rose 10% to CHF 176 million, margin 17.1%.

• Free cash flow up to CHF 273 million, with net cash from operating activities at CHF 419 million.

• Net debt/EBITDA before exceptionals improved to 2.03x; net debt reduced to CHF 1.413 billion.

• Dividend of CHF 0.42 per share proposed, payout ratio 58% of underlying EPS.

• Gross margin stable at 29.9%; EBIT for FY 2025 was CHF 362 million, down from CHF 440 million, impacted by restructuring and impairments.

Outlook and guidance

• 2026 expected to remain challenging, with global chemical output growth slowing to 1.9% and flat sales in local currency anticipated; EBITDA margin before exceptionals guided to 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.