Switzerland's Clariant Q3 sales beat on higher prices, EBITDA misses on cost pressure
Switzerland's Clariant Q3 sales beat on higher prices, EBITDA misses on cost pressure
Overview
Switzerland specialty chemical firm's Q3 sales rose 5.6% in local currency, beating analyst expectations
Q3 adjusted EBITDA missed analyst expectations as margins fell on cost phasing and mix effects
Company maintained 2026 guidance, citing strong order book and cost-saving progress
Outlook
Clariant maintains 2026 guidance, expecting sales in local currency to be around flat
Company expects 2026 EBITDA margin before exceptional items of around 18%
Clariant expects free cash flow conversion above 45% in 2026
Result Drivers
PRICING GAINS - Co said sales growth was driven by higher prices across all business units in response to inflationary raw material, energy and logistics costs
MIDDLE EAST IMPACT - Co said Catalysts volumes were negatively affected by the ongoing conflict in the Middle East, leading customers to delay orders
MIX AND COST EFFECTS - Co said margin decline was due to less favorable mix and volatile raw materials affecting costs and inventory valuation in Care Chemicals and Catalysts
Company press release: ID:nGNE47t9jr
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Beat | CHF 968.8 mln | CHF 925.14 mln (7 Analysts) |
Q3 Adjusted EBITDA | Miss | CHF 151.5 mln | CHF 161.20 mln (5 Analysts) |
Q3 EBITDA |
| CHF 144 mln |
|
Q3 EBITDA Margin |
| 14.9% |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 6 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the specialty chemicals peer group is "buy"
Wall Street's median 12-month price target for Clariant AG is CHF10.75, about 3% above its November 2 closing price of CHF10.44
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)