Lanxess shares slide lower as Q1, full-year outlook comes in below estimates

Published 20/03/2025, 09:12
© Reuters.

Investing.com -- Lanxess (ETR:LXSG) warned on Thursday that its earnings for 2025 are likely to be affected by sluggish economic growth and potential political disruptions.

The German specialty chemicals company expects market challenges to persist, particularly across the Americas, Europe, the Middle East, and Africa.

Shares declined around 5% in European trading.

For the full year, Lanxess projected EBITDA pre exceptionals to range between 600 million euros ($653.82 million) and 650 million euros, including the contribution from Urethane Systems.

This outlook falls short of analyst expectations, with Vara Research previously forecasting 674.8 million euros in EBITDA for 2025.

For the first quarter of 2025, Lanxess expects it to be better by 25-35% year-over-year than €101 million in Q1 2024, implying a range of €126-136 million. This also missed consensus expectations of €143 million.

“We expect investors to focus on the outlook statement today. Given the strong move higher in the shares year-to-date on back of the German Fiscal package, we would expect to see a correction today,” Morgan Stanley (NYSE:MS) analysts said.

“We expect shares to open lower on the 1Q & FY guide, but expect shares to recover through the day,” they added.

The company confirmed that its 2024 EBITDA pre exceptionals remained in line with preliminary figures released in January. Stronger-than-expected results were supported by U.S. customers stockpiling ahead of potential tariffs under a second Trump administration.

For Q4 2024, Lanxess reported EBITDA of €159 million, in line with its preliminary release, supported by a 3% increase in volumes, while pricing declined by 1%.

Free cash flow for the quarter came in at €206 million, significantly above the estimated €47 million.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.