Lanxess (LXS) Q1 2025 earnings summary

Executive summary

• Q1 2025 EBITDA pre increased 32% year-over-year to €133 million, reflecting improved utilization, cost savings, and segment improvements amid a weak market environment.

• Net income improved to -€57 million from -€98 million in Q1 2024, driven by better operating performance and Envalior contribution.

• Sales remained flat at €1,601 million, with higher volumes offset by lower prices due to raw material cost pass-through.

• Completed sale of Urethane Systems business unit to UBE Corporation on April 1, 2025, with proceeds aimed at strengthening the balance sheet and reducing debt.

• Persistently weak market conditions in agrochemicals and construction industries.

Financial highlights

• EBITDA pre margin rose to 8.3% from 6.3% year-over-year.

• Adjusted EPS turned positive at €0.23, up from -€0.09 in Q1 2024.

• Capex increased to €45 million, up 15% year-over-year.

• Free cash flow was -€111 million, impacted by seasonal working capital build-up.

• Net financial debt increased seasonally to €2,512 million.

Outlook and guidance

• Full-year 2025 EBITDA pre guidance reiterated at €600–650 million, including Q1 Urethane Systems contribution.

• Q2 expected to improve sequentially but remain below prior year due to absence of Urethanes contribution.

• No fundamental change in business momentum assumed for H2; improvement expected from US pricing and plant closure benefits.

• Currency risk is hedged at group level, planning with a EUR/USD rate of 1.10.

• Macro-economic and geopolitical uncertainty heightened by tariff discussions and global tensions.