Lanxess AG

LANXESS said second-quarter 2026 sales increased 6% year over year, driven by positive volume and price effects, and prices rose 3%. EBITDA increased only moderately versus the prior year because last year included positive one-off effects, but sequentially EBITDA rose substantially; management said the second quarter was above its own guidance and described the sequential increase as 62%. Sales were up 13% sequentially, and free cash flow was clearly positive. For full-year 2026, management confirmed guidance and said it still expects third-quarter EBITDA of EUR 130 million to EUR 150 million, with the second half facing a tense macro environment and some FX headwinds.

Matthias Zachert emphasized that business momentum improved from Q1 to Q2, with both price and volume gains across all three segments and better operating performance than in the weak first quarter. He framed the quarter as proof that the company’s earlier, more ambitious Q2 outlook was justified and said LANXESS will continue to deliver without changing guidance. On the Rhine low-water situation, he stressed that management acted early, formed a crisis team, and secured alternate transport, so production has remained intact.

Oliver Stratmann said the external environment remains difficult, including weak demand conditions and unfavorable foreign exchange, especially a weaker dollar. He confirmed full-year 2026 guidance and said the company expects a good third quarter versus the prior year, though not as strong as previously anticipated, with EBITDA still expected at EUR 130 million to EUR 150 million. He also said cost savings remain important and highlighted support from EU anti-dumping measures for the German chemical industry.

Analysts focused heavily on the Rhine low-water issue, asking about cost impacts, possible production disruptions, and how long the situation can be managed. Management said the extra logistics cost is only a single-digit million amount, while the real risk would be any production stoppage; so far, supply has been maintained and the company has secured rail and road capacity for the next 1 to 2 weeks, with planning extending 4 to 6 weeks ahead. Questions also probed whether LANXESS was being conservative versus peers on guidance; Zachert responded that the company had already been ambitious in its Q2 outlook and therefore did not need to raise guidance now.