Lanxess reported a 61.7% sequential rise in second-quarter EBITDA to €152 million on Tuesday, citing accelerated cost reductions and portfolio adjustments under its FORWARD! restructuring program. The Cologne-based specialty chemicals company, which operates as a spin-off from Bayer since 2005, also raised its full-year EBITDA guidance to €450-550 million from a prior range, with a midpoint of €500 million.
The company, which employs roughly 11,700 people globally, achieved about €150 million in savings under FORWARD! by the end of 2025 and now targets an additional €170 million in savings by 2028. Free cash flow turned positive in Q2 at €56 million, reversing a €29 million deficit in the first quarter. Capital spending for 2026 is projected at approximately €330 million, while tax and interest expenses are expected to total €30-40 million and €40-50 million, respectively.
Lanxess has closed two production sites in recent quarters: a hexane oxidation plant in Uerdingen and a flavors and fragrances facility in Widnes, United Kingdom. The company is also reallocating Saltigo’s production capacity from agrochemicals to higher-margin pharmaceutical applications, targeting €20 million in additional savings. Industry capacity utilization remains below optimal levels at roughly 65-70%, compared with a healthier 80% target.
Geographic diversification has been a key pillar of Lanxess’s strategy. U.S. sales have expanded from 15% of total revenue in 2016 to about one-third by 2025, driven by portfolio shifts and organic growth. The company’s annual sales stood at approximately €5.7 billion at the end of last year. Management emphasized the U.S. market’s attractiveness, noting its position as one of the most dynamic specialty chemicals markets globally.
Lanxess also highlighted progress toward its deleveraging target, aiming to reduce net debt-to-EBITDA below 2.5 times to restore investment-grade status. The company’s shares have declined 45% over the past year, trading at 0.35 times book value with a market capitalization of $1.42 billion. Analysts project 2026 earnings per share of $1.15, a rebound from an $8.85 loss over the prior 12 months.
Private equity owner Advent International retains the right to require Lanxess to divest its Envalior joint venture stake, with the contractual effective date expected between late March and early April 2027.
