Lanxess beats Q2 profit estimates but warns of no market recovery

Lanxess, the Cologne-based specialty chemicals company, reported a second-quarter core profit that edged past analyst expectations, yet its cautious outlook and unchanged full-year guidance disappointed investors, sending shares down about 5% in morning trading.

The company posted earnings before interest, taxes, depreciation, and amortisation (EBITDA) before exceptional items of €152 million for the April-June period, slightly above the €150.6 million consensus forecast compiled on its website.

Despite the beat, Lanxess reaffirmed its 2026 EBITDA guidance of €450 million to €550 million, signalling that management does not expect a sustained improvement in demand. The firm said it saw no signs of a broader recovery in its core markets and anticipated conditions would remain challenging.

Higher raw-material and energy costs were largely offset through price increases, the company noted, but it cautioned that recent improvements did not indicate a lasting turnaround.

Chief Executive Matthias Zachert acknowledged the uncertainty, telling reporters: "Nobody knows for how long this situation is going to continue in the Middle East, we therefore have to take the situation as it is and handle the challenges as best as we can on the customer side."

The company attributed part of its performance to higher demand, including temporary benefits linked to the Middle East conflict, which has disrupted fuel and feedstock markets and raised costs across the chemicals industry. Some European producers have gained as supply disruptions increased costs for Asian rivals and prompted customers to prioritise reliability over price.

Analysts remained cautious. Massimo Bonisoli of Equita SIM said the guidance assumptions looked "relatively conservative" and that the upper end of the range was the more likely outcome, but he added that the release did not provide enough evidence to materially change consensus estimates in either direction.