Cologne, 6 November 2025 — Lanxess AG, of Germany, a supplier of specialty chemicals, is cautiously optimistic about a 2026 turnaround for the chemical sector. According to Chief Executive Matthias Zachert, while the environment is still extremely challenging, there are already clear signals that the worst of the uncertainty may be behind the industry.
Zachert emphasized that this sector has had to bear years of weak demand, increased energy and raw-material costs, supply-chain disruptions, and geopolitical uncertainty. Besides that, declining volumes, margin pressure, and shrinking production are affecting Germany’s chemical industry, one of the country’s largest manufacturing pillars.
Given these challenges, Lanxess has implemented a rigorous internal cost‑and‑efficiency program and repositioned itself toward higher‑value, specialty chemicals.
The reason for the relative optimism? A combination of governmental stimulus measures and a stabilising trade/tariff backdrop. Zachert pointed to Germany’s newly proposed €500 billion infrastructure fund and a €46 billion tax relief package running through 2029 that will support downstream industries and spur demand for chemical inputs such as flame‑retardants, coatings, pigments and construction‑materials chemicals.
He said:
“Order books will see more orders accepted … that will have some consequences on different products, such as flame retardants, screed coatings and pigments.”
Zachert was at pains to stress that this is not something that will happen overnight: “The new government has only been in office since May … it’s on the various levels like the federation, the federal states and the municipalities that this is going to be implemented and then it should bear fruit.”
The key word is gradual, as Lanxess projects meaningful improvement to appear in 2026 rather than in the rest of 2025.
The weak demand environment is still reflected in the company’s 2025 financial outlook. Revenue for the third quarter was down by 16.3 % year on year, and EBITDA pre-exceptionals reached only €125 million, 27.7 % less than a year ago.
For 2025 the firm expects EBITDA in the range of €520–580 million.
Given this backdrop, Zachert’s message to investors and stakeholders is clear: while things are tough now, Lanxess is using this period to strengthen its fundamentals so that when demand does recover, it is well‑positioned. As he himself put it earlier, “We remain fully focused on achieving the best possible positioning. When the economy picks up again, we will be ready and able to meet the additional demand much more efficiently and profitably.”
The key pillars of Lanxess’s approach from a strategic vantage are:
Cost discipline and optimization: The “FORWARD!” action plan is a multiyear initiative to reduce structural costs-targeting ~€150 million per annum-and to streamline the global production networks.
Refinement of the Business Portfolio: Specialty chemicals, higher-margin products, and sustainable solutions, not commodity chemicals. macplas.it Readiness for demand pick‑up: Lanxess has kept its cost base lean and production flexible, with a view to quickly responding when its end‑markets (construction, automotive, coatings) start to rebound. But there are still risks ahead. Tariff uncertainty is still a drag: Zachert said U.S. trade policy and global protectionism still cast a shadow over investment decisions. “Tariff uncertainty will be here to stay, but at a lower level,” he noted.
while government stimulus is good, the length of time it takes for funds to flow and orders to emerge means that 2025 will still be tough. For the chemical‑industry as a whole the lobby group Verband der Chemischen Industrie (VCI) does not anticipate a complete recovery before 2026. Reuters This is a credible outlook from the perspective of market analysis. The timing of Lanxess coincides with broader expectations that the chemical industry’s demand typically lags behind macroeconomic recovery as it is an upstream supplier for most of the industrial end-markets. The infrastructure stimulus has more significance since many specialty chemicals-coatings, flame-retardants, and additives-gain when construction and durable-goods investment accelerates.
His style is measured — not over‑bullish — but adaptive to the shifting context. In conclusion, Lanxess is now in a ‘pre‑recovery’ phase. The immediate horizon still remains quite tough, but the company is preparing for an upturn around 2026. For investors, customers, and suppliers alike, it is all about execution of the cost‑and‑positioning plan from here on. If the macro tailwinds align, Lanxess could emerge from the downturn ahead of its peers and well placed to ride the next wave of industrial demand.
