Lanxess Q2 profit beats estimates on Middle East disruptions

German speciality chemicals maker Lanxess reported a quarterly core profit that edged past market expectations, helped by stronger demand and temporary supply disruptions stemming from the Middle East conflict. However, the company cautioned that the improvement does not mark the beginning of a broader recovery in its key markets.

For the second quarter, the Cologne-based company posted earnings before interest, taxes, depreciation, and amortisation (EBITDA) pre-exceptionals of €152 million, slightly above the €150.6 million average analyst forecast compiled on its website. Quarterly sales rose 6.5% year-on-year to €1.56 billion, also ahead of the €1.54 billion expected by analysts.

Chief Executive Matthias Zachert said the company was able to benefit from increased demand, including temporary effects linked to the Middle East conflict. He noted that Lanxess achieved simultaneous growth in volumes and prices for the first time in a year, largely offsetting higher raw-material and energy costs through price increases.

Despite the positive quarter, Zachert warned that the improvement does not signal a sustained turnaround. "There is no sign of a sustained upturn in demand in our core markets and market conditions remain challenging," he said, adding that the company does not expect further economic momentum by the end of the year.

The Middle East conflict has disrupted fuel and feedstock markets, raising costs across the chemicals industry. Some European producers have gained an edge as supply disruptions increased costs for Asian competitors and prompted customers to prioritise reliability over price.

Lanxess confirmed its full-year 2026 guidance for EBITDA pre-exceptionals of €450 million to €550 million.