Lanxess posts worse than expected Q3 sales and warns on FY profit (updated)

LANXESS AG

06/11/2025 06:21

Posts Q3 sales of 1.33 bln eur, missing expectations

Expects FY core profit to be at the lower end of its guidance

Shares fall 7.7%

Adds analysts comments in paragraphs 5, 6 and 7, share move in paragraph 8

By Ozan  Ergenay

Nov 5 (Reuters) - Speciality chemicals maker Lanxess LXSG.DE on Thursday reported a worse-than-expected 16.3% drop in its quarterly sales and said its 2025 core profit would be at the lower end of its expectations.

The Cologne-based company posted revenue of 1.33 billion euros ($1.55 billion) for the third-quarter, down from 1.59 billion euros a year earlier, missing analysts' forecast of 1.43 billion in a company-provided poll.

Lanxess now expects annual earnings before interest, taxes, depreciation and amortisation (EBITDA), stripping out one-off items, to be around the lower end of the range of 520 million to 580 million euros.

The German company, which makes high-end speciality chemicals such as additives, lubricants, flame retardants and plastics, had already lowered its profit guidance earlier this year in August.

SHARES DOWN 7.7% IN EARLY TRADE

Lanxess shares, which have fallen 24% since the start of the year including today's session, fell 7.7% in early trade.

Analysts at J.P.Morgan said in a note that the lower end expectation for annual profit was in line with analysts' current consensus forecast.

That said, the market will be concerned about the potential for material cuts to consensus for the fourth-quarter and 2026, they said.

"This may result in some underperformance of the shares today, notwithstanding the already tough performance year-to-date," they added.

ONGOING WEAKNESS

Lanxess chief executive Matthias Zachert said in a statement that the ongoing weakness in global demand was continuing to impact the entire chemical industry.

        "The situation is particularly dramatic in our target industries of construction, automotive and agro-chemicals," he said.

Zacher said Lanxess continues to focus on reducing costs, but flagged that the chemical industry still needs further support from politicians.

The German chemical sector, the country's third-largest, has been struggling for years with subdued demand, high energy costs, supply chain issues and an economic slowdown.

Worries in markets for months from elevated interest rates, stubborn inflation, trade turmoil and a patchy global economy have also added to the pressure on the long-troubled chemicals sector.

Lanxess said it will launch further cost measures with a savings potential of 100 million euros and the details will be specified in the first quarter of the next year, in addition to its "Forward" cost reduction plan initiated in 2023.

($1 = 0.8575 euros)

 (Reporting by Ozan Ergenay in Gdansk, editing by Matt Scuffham)

 ((Ozan.Ergenay@thomsonreuters.com;))