Lanxess reported a 61.7% sequential rise in second-quarter 2026 adjusted EBITDA to EUR 152 million, up from EUR 94 million in the prior quarter, as cost-cutting measures under its FORWARD! program took effect. Free cash flow turned positive to EUR 56 million from a negative EUR 29 million in Q1, reflecting tighter working capital and reduced capital expenditure.
The Cologne-based specialty chemicals company, which operates around the world with approximately 11,700 employees, maintained its full-year 2026 adjusted EBITDA guidance at EUR 450 million to EUR 550 million, implying a midpoint of about EUR 500 million. Third-quarter guidance was set between EUR 130 million and EUR 150 million. Capital spending for 2026 is expected to reach EUR 330 million, with tax expenses projected at EUR 30 million to EUR 40 million and interest expenses at EUR 40 million to EUR 50 million.
Lanxess generated roughly EUR 5.7 billion in annual sales as of the end of 2025, with U.S. sales now accounting for about one-third of the total, up from 15% in 2016. The company’s restructuring program, launched to improve competitiveness, has delivered around EUR 150 million in savings by the end of 2025 and is expected to yield an additional EUR 170 million through 2028 via organizational changes, network adjustments and workforce reductions.
Management highlighted further savings targets, including EUR 20 million from production adjustments at the Saltigo unit. Industry capacity utilization remains subdued at roughly 65% to 70%, below the company’s view of a healthy level near 80%. Lanxess was formed in 2005 as a spinoff from Bayer and has since reshaped its portfolio through acquisitions such as Chemtura, Emerald Kalama Chemical and parts of IFF’s microbial control business, alongside divestitures including the Envalior joint venture, where Advent International holds a stake.
The company’s shares have declined 45% over the past year, leaving it with a market capitalization of $1.42 billion and trading at 0.35 times book value. Analysts forecast earnings per share of $1.15 for 2026, a rebound from a loss of $8.85 in the prior twelve months.
