Clariant increases Q3 2025 EBITDA margin before exceptional items by 230 basis points to 17.9 % in continued challenging market environment

Core Insights - The company reported significant growth in profitability for Q3 2025, with an EBITDA margin before exceptional items of 17.9%, an increase of 230 basis points year-over-year, reflecting effective performance improvement programs and cost management [2][5][9] Financial Performance - Q3 2025 sales amounted to CHF 906 million, a decrease of 3% in local currency compared to Q3 2024, with pricing up by 1% but lower volumes in Care Chemicals and Catalysts leading to an overall decline [5][6] - For the first nine months of 2025, sales were CHF 2.887 billion, down 1% in local currencies and 6% in Swiss francs, driven by lower volumes [13][16] - The EBITDA for Q3 2025 was CHF 159 million, a 14% increase year-over-year, while the EBITDA margin was 17.5%, up 350 basis points from the previous year [11][9] Business Unit Performance Care Chemicals - Sales in the Care Chemicals unit decreased by 3% in local currency and 8% in Swiss francs in Q3 2025, with flat pricing and a 3% decline in volumes [24][23] - The EBITDA margin before exceptional items improved to 18.9% from 17.4% in the prior year, driven by a positive mix effect and contributions from performance improvement programs [28][29] Catalysts - The Catalysts unit saw a sales decline of 8% in local currency and 16% in Swiss francs in Q3 2025, with stable pricing but an 8% drop in volumes [31][30] - EBITDA before exceptional items decreased by 13% to CHF 33 million, with a margin of 19.3%, reflecting effective cost management [35][36] Adsorbents & Additives - Sales in the Adsorbents & Additives unit increased by 1% in local currency but decreased by 3% in Swiss francs in Q3 2025, with pricing up by 3% and volumes down by 2% [38][37] - The EBITDA margin before exceptional items rose to 17.2%, a 130-basis point improvement from the prior year, supported by performance improvement programs [41][42] Regional Performance - In Q3 2025, local currency sales in the Europe, Middle East & Africa region declined by 6%, while the Americas saw a 3% decrease, and Asia-Pacific experienced a 1% increase [8][5] - For the first nine months, sales in the Europe, Middle East & Africa region were flat in local currency, while the Americas grew by 1% and Asia declined by 2% [15][13] Outlook - The company maintains its 2025 profitability guidance with an expected EBITDA margin of 17-18% and local currency sales growth anticipated at the lower end of the 1-3% range [20][21] - The Investor Day savings program of CHF 80 million is on track, with CHF 31 million savings achieved year-to-date [10][5]