Lanxess narrows 2026 guidance to upper end of range

Lanxess reported third quarter adjusted EBITDA of €139 million on Thursday, representing a 4% increase versus analyst expectations of €134 million and a 1% rise compared to consensus estimates of €138 million.

The German specialty chemicals company narrowed its full-year 2026 adjusted EBITDA guidance to the upper end of its €450 million to €500 million range, compared to its previous guidance of €450 million to €550 million. The company said it expects continued positive free cash flow in the fourth quarter.

Group sales reached €1,467 million in the third quarter, up 2% versus analyst expectations of €1,434 million and 2% above consensus of €1,441 million. Sales grew 9% on an organic basis, driven by an 8% increase in volumes and a 1% rise in prices.

The Specialty Additives division reported adjusted EBITDA of €71 million, up 28% versus analyst expectations of €55 million. The division’s adjusted EBITDA margin increased by 360 basis points year-over-year, with organic sales growth of 12%.

The Advanced Intermediates division posted adjusted EBITDA of €25 million, down 20% versus analyst expectations of €31 million. The Consumer Protection division reported adjusted EBITDA of €67 million, down 1% versus analyst expectations of €68 million.

Operating cash flow in the third quarter was €124 million, compared to €50 million in the same period last year. Free cash flow reached €48 million, compared to negative €14 million in the third quarter of 2025.

Net financial debt stood at €2,011 million, representing a debt-to-adjusted EBITDA ratio of 4.1 times, down from 4.4 times in the second quarter.

The company said its fourth quarter outlook assumes continued cost streamlining with savings weighted toward the end of the year, support from EU anti-dumping measures, a seasonally weaker fourth quarter, and continued impact from low Rhine River water levels at the start of the quarter.