Q2 2025 Lanxess AG Earnings Call Transcript

Aug 14, 2025 / 11:00AM GMT

Transcript

Key Points

Positve

Lanxess AG (LNXSF) reported a positive free cash flow of EUR31 million in Q2, contributing to a reduction in net debt.
The company successfully managed to keep working capital stable, with a notable reduction in receivables.
Closure of the hexane oxidation plant ahead of schedule is expected to yield annual savings of approximately EUR10 million.
Lanxess AG (LNXSF) has a lean and improved cost structure, positioning it well for a potential demand pickup in 2026.
The company has maintained low inventory levels, allowing flexibility to respond to future demand increases.

Negative

Q2 was a challenging quarter with a significant decline in EBITDA from EUR181 million to EUR150 million, driven by volume, price, and portfolio effects.
The automotive, capital goods, and chemicals industries faced tremendous pressure, impacting Lanxess AG (LNXSF)'s performance.
Chinese competition has increased, particularly affecting the intermediates segment, with products being dumped in Europe.
The Urethane divestiture negatively impacted sales and EBITDA contributions in the second quarter.
Energy costs remain a burden, with a EUR30 million increase in the first half compared to the previous year, affecting competitiveness.

Operator

Good day and thank you for standing by.

Welcome to the Lanxess Q2 2025 results conference call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Andre Simon, Head of IR.

Please go ahead.

Andre Simon

Lanxess AG - Head of Investor Relations

Yeah, thank you very much, Sandra, and a warm welcome to everybody to our Q2 conference call from my end as well.

Today, I have our CEO, Matthias Zachert; and our CFO, Oliver Stratmann with me. Please take notice of our Safe Harbor statement. Matthias will start with a short presentation and then we will open the floor for your questions.

With that, I'm happy to hand over to go ahead.

Matthias Zachert

Lanxess AG - Chairman of the Management Board, Chief Executive Officer

Thank you very much, Andre, and welcome to everybody on the second-quarter conference call from Lanxess.

I turn my attention to page number 4 in the distribution

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