Clariant AG

In Q2 2026, Clariant reported sales of CHF 941 million, up 0.6% in local currency on a comparable basis and down 0.3% including portfolio pruning; reported sales were affected by a 2.4% currency headwind. Pricing increased 3%, volumes fell 3.3%, and EBITDA before exceptional items rose 1.5% to CHF 171.1 million, lifting margin to 18.2% from 17.4% a year earlier. For H1 2026, sales were CHF 1.859 billion, flat in local currency excluding pruning and down 1.2% including it; EBITDA before exceptional items declined 7.7% to CHF 331 million with margin at 17.8%, while reported EBITDA increased 3.1% to CHF 300 million. Free cash flow conversion improved by 15 percentage points to 52% over the last 12 months, and net debt to LTM EBITDA before exceptional items rose to 2.2x from 2.0x at year-end 2025. Guidance for 2026 was reiterated: sales expected to be around 2025 levels in local currency and EBITDA margin around 18% before exceptional items. Management also raised the performance-improvement savings target to CHF 100 million run-rate by 2027, with CHF 90 million expected by end-2026.

Conrad Keijzer emphasized that Clariant delivered resilient results in a volatile environment, pointing to positive pricing across all three businesses, stronger Care Chemicals, and improved cash conversion. He said the Middle East conflict continued to weigh on Catalysts and supply chains, but noted that sites were safe, operations had resumed, and global feedstock access was secured. On strategy, he stressed that the company remains focused first on organic growth, then bolt-on acquisitions, with no change in M&A strategy despite the court win.

Oliver Rittgen detailed the financial bridge by business unit and highlighted margin resilience in Care Chemicals, where EBITDA reached CHF 104 million and margin improved to 20.7%. He noted Catalysts EBITDA fell to CHF 32.8 million with margin at 18.6% amid a 14.2% volume decline, while Adsorbents & Additives produced CHF 51.2 million of EBITDA at a 19.6% margin. On the balance sheet and cash flow, he said operating cash flow improved by CHF 52.8 million, free cash flow conversion reached 52%, and net debt increased by CHF 79.2 million versus end-2025, taking leverage to 2.2x.

Analysts pressed management on whether limited prebuying in Care Chemicals could hurt Q3, and Conrad said it was very limited and mostly in cosmetics, not broad home care prebuying. Questions on the Amsterdam court dismissal focused on whether it lowers risk in the remaining ethylene claims; management said the Dutch cases use very similar methodology and the ruling is encouraging, but appeals remain possible and they would not comment on individual German cases. Analysts also challenged the M&A mix and strategic shape of the portfolio; Conrad said Clariant will stay disciplined, favor bolt-on acquisitions with tangible synergies, and sees no need to change the current portfolio mix based on the lawsuit outcome.