Clariant AG

Q2 2026 sales were CHF 941 million, up 0.6% in local currency on a comparable basis; including portfolio pruning, sales were down 0.3% in local currency. Pricing increased 3%, volumes declined 3.3%, and currency was a 2.4% headwind. EBITDA before exceptional items rose 1.5% to CHF 171.1 million, with margin up 80 bps to 18.2%. In the first half, sales were CHF 1.859 billion, flat in local currency excluding portfolio pruning and down 1.2% including it; H1 EBITDA before exceptional items fell 7.7% to CHF 331 million and margin was 17.8%. Group reported EBITDA in H1 increased 3.1% to CHF 300 million, with reported margin of 16.1%. Free cash flow conversion improved to 52% on a last-12-month basis, up 15 percentage points, and net debt/EBITDA before exceptional items increased to 2.2x from 2.0x at year-end 2025. For full-year 2026, Clariant expects sales to be around 2025 levels in local currency and EBITDA margin around 18% before exceptional items; it expects growth in Adsorbents & Additives, slight underlying growth in Care Chemicals, and lower sales in Catalysts due to Middle East order delays.

Conrad Keijzer framed the quarter as evidence of resilience in a difficult environment, pointing to strong pricing, improved margins, and solid cash generation. He emphasized that the Middle East conflict remains the key external drag, especially on Catalysts and regional oil-services activity, but said Clariant is using its global footprint, value-based pricing, and cost actions to protect profitability. He also described the Shell court dismissal as encouraging and said it does not change the company’s strategy, which remains focused on organic growth first and disciplined bolt-on acquisitions second.

Oliver Rittgen highlighted the business mix behind the quarter: Care Chemicals delivered CHF 104 million of EBITDA before exceptional items and a 20.7% margin, Catalysts generated CHF 32.8 million with an 18.6% margin, and Adsorbents & Additives produced CHF 51.2 million with a 19.6% margin. He noted that H1 operating cash flow improved by CHF 52.8 million and that free cash flow conversion reached 52% versus 37% at half-year 2025, supported by working capital management and disciplined capex. He also said the company increased the performance-improvement savings target by CHF 20 million to CHF 100 million of run-rate savings by 2027, expects CHF 90 million by end-2026, and booked CHF 24 million of restructuring charges in Q2.

Analysts focused on whether limited prebuying in Care Chemicals could hurt Q3, whether the Shell dismissal changes the risk profile for the other ethylene claims, and how the Middle East force-majeure situation is evolving. Management said prebuying was very limited and mostly in cosmetics, not broad-based home care, and did not expect a meaningful pull-forward effect. On litigation, management said the Dutch cases use very similar methodology and cited the court’s finding that the AlixPartners report failed to show causality, but declined to predict appeals or comment on specific German cases. They also said global force majeure cases had risen above 100 during Q2 but were now below 100, with easing outside the Middle East.