Chemicals producer Lanxess Q3 sales rise on higher prices

Overview

• Germany specialty chemicals producer's Q3 sales rose 9.6% yr/yr, mainly driven by higher prices

• EBITDA pre exceptionals for Q3 increased yr/yr despite challenging market conditions

• Company posted net loss of EUR 70 mln in Q3

Outlook

• Lanxess expects 2026 EBITDA pre exceptionals at upper end of €450 mln-€500 mln range

• Company expects positive free cash flow in Q4 2026

• Lanxess cites persistently challenging market environment for its outlook

Result Drivers

• HIGHER PRICES - Co attributed sales growth mainly to higher selling prices driven by increased raw material costs

• COST REDUCTIONS OFFSET - Structural cost reductions helped, but were offset by higher logistics costs and supply chain disruptions

• HIGHER OPERATING COSTS - Increased selling and administration expenses contributed to net loss

Company press release: Full Story

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 9 "hold" and 8 "sell" or "strong sell"

• The average consensus recommendation for the diversified chemicals peer group is "buy."

• Wall Street's median 12-month price target for Lanxess AG is €17.00, about 39% above its November 4 closing price of €12.23

Reuters Recommended Reads

• Nov 3 - German chemical sector mood slips in October after two-month recovery, Ifo says

• Nov 3 - Switzerland's Clariant Q3 sales beat on higher prices, EBITDA misses on cost pressure

• Nov 2 - Celanese Q3 sales rise 6%

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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.)