Clariant delivers continued strong results in volatile operating environment – Court dismisses Shell’s damage claim related to the 2020 competition law infringement

AD HOC ANNOUNCEMENT PURSUANT TO ART. 53 LR

• Q2 2026 comparable sales rose 0.6 % in local currencies to CHF 941.3 million and declined reported 0.3 % when including portfolio pruning. Care Chemicals recorded strong growth of 4.2 % excluding pruning and Adsorbents & Additives of 5.3 %, which more than offset lower Catalysts’ sales of - 13.3 % due to the Middle East conflict
• Q2 2026 EBITDA margin before exceptional items increased by 80 basis points to 18.2 % from 17.4 % in Q2 2025 with strong performance in Care Chemicals more than offsetting lower Catalysts’ margins
• H1 2026 sales of CHF 1 859.3 million flat in local currencies excluding portfolio pruning, - 1.2 % reported; EBITDA margin before exceptional items of 17.8 % versus 18.1 % in the prior year, with Care Chemicals and Adsorbents & Additives offsetting most of the Middle East impact on Catalysts
• H1 2026 operating cash flow of CHF 168.7 million versus CHF 115.9 million in the prior year, driven by effective net working capital management and disciplined Capex; free cash flow conversion improved by 15 percentage points to 52 % (LTM)
• Further active cost management increases the ongoing performance improvement programs by CHF 20 million to an annual run-rate total of CHF 100 million, CHF 90 million in 2026; one-time restructuring charges amount to CHF 29 million
• Guidance 2026 remains unchanged
• Clariant dismissed from Shell’s allegations related to the 2020 competition law infringement. The Court particularly found no proof that the information exchange among buyers caused market harm or altered pricing metrics like the Monthly Contract Price (MCP).
• Amsterdam court also dismissed a claim seeking declaratory judgment of liability of the defendants for the same conduct brought by a claim vehicle »Stichting Ethylene Claims«

“In the second quarter of 2026, Clariant continued to deliver strong results, demonstrating resilience in a volatile operating environment. Comparable sales increased by 0.6 % in local currency with strong pricing-led growth in Care Chemicals and Adsorbents & Additives offsetting volume headwinds in Catalysts from the ongoing conflict in the Middle East. Our EBITDA margin before exceptional items improved by 80 basis points to 18.2 %, driven by Care Chemicals, which more than offset the headwinds in Catalysts. We are expanding our performance improvement programs by over CHF 20 million to run-rate savings of CHF 100 million by 2027, with 90 % of the total expected to be achieved by the end of 2026,” said Conrad Keijzer, Chief Executive Officer of Clariant. 

“Our guidance for 2026 remains unchanged with sales around flat in local currency and EBITDA margin before exceptional items of around 18 %. While the Middle East conflict continues to weigh particularly on our Catalysts business, we expect a stronger second half in the business as customers particularly outside the Middle East resume operations. We continue to successfully implement our proven value-based price initiatives by leveraging our differentiated, innovative solutions for customers, securely supplied through our global production networks,” Conrad Keijzer added.

Second Quarter 2026 Group Discussion

MUTTENZ, 31 JULY 2026 – Clariant, a sustainability-focused specialty chemical company, today announced second quarter 2026 sales of CHF 941.3 million, representing an increase of 0.6 % on a comparable basis versus the prior year. Including the impact of portfolio pruning, sales in local currency decreased by 0.3 %. Pricing increased by 3.0 %, driven by strong value-based pricing actions to offset inflationary raw material prices. Volume decreased by 3.3 %, impacted by the Middle East conflict and portfolio pruning measures. In Swiss francs, sales were 2.7 % lower versus Q2 2025, with the currency impact of 2.4 % mainly driven by the Indian rupee, Euro, and the US dollar.

Care Chemicals sales increased by 4.2 % in local currency versus Q2 2025 excluding the impact of portfolio pruning. Pricing was up 3.7 %, driven by strong value-based price management to offset higher raw material costs, while underlying volume growth was 0.5 %. When including the impact of portfolio pruning, sales in local currency increased by 2.5 %, as positive pricing was partly offset by a volume decline of 1.2 %. Sales grew in Personal & Home Care, Industrial Applications and Mining Solutions, as a result of both positive pricing and higher volumes. Sales in the other segments declined due to lower volumes, with the pruning measures significantly impacting Oil Services and Base Chemicals. Catalysts’ sales declined by 13.3 % in local currency, as positive pricing of 0.9 % was more than offset by a volume decline of 14.2 %. The business saw a continued impact from the ongoing volatile situation in the Middle East, which led customers to delay orders. Sales grew in Specialties, while other segments declined. Adsorbents & Additives sales increased by 5.3 % in local currency, with positive pricing (+ 3.3 %) and volume growth (+ 2.0 %), particularly in coatings and flame retardants. Sales increased in Additives, driven by both pricing and volume growth, while Adsorbents sales were flat as growth in renewable fuel applications in the United States was more than offset by softer demand in purification and industrial applications. 

Group EBITDA before exceptional items of CHF 171.1 million increased by 1.5 % year on year, with a corresponding margin of 18.2 % compared to 17.4 % in the prior year. The 80-basis point increase was the result of a strong performance in Care Chemicals, where higher pricing and positive underlying volumes were further supported by a favorable valuation effect on inventory. Benefits from the performance improvement programs also supported margins, particularly in Adsorbents & Additives. These drivers more than offset the negative impact from the Middle East on Catalysts and Oil Services, as well as higher prices for raw materials (7.4 %), energy (6.0 %) and logistics (8.1 %). 

Clariant also acted decisively in a challenging macroeconomic environment, which continues to be impacted by risks and uncertainties due to the conflict in the Middle East. As part of its active targeted cost management, the company identified opportunities to increase the contribution of the performance improvement programs by over CHF 20 million, upgrading the total annual run-rate to CHF 100 million from CHF 80 million as originally announced during the Investor Day in 2024. Driven by the successful implementation of key measures, Clariant expects to deliver annual run-rate savings of CHF 90 million by the end of this year, with CHF 10 million savings achieved during the second quarter. These additional cost savings will trigger one-time restructuring costs of CHF 29 million, of which CHF 24 million have been recognized in the second quarter of 2026. 

Group reported EBITDA increased by 2.8 % to CHF 142.4 million, and the EBITDA margin of 15.1 % improved by 80 basis points compared to the 14.3 % reported in the second quarter of 2025. These improvements were the result of the contribution from the performance improvement programs and cost productivity, despite slightly higher restructuring compared to the prior year.

First Half Year 2026 Group Discussion

In the first half year 2026, sales of CHF 1 859.3 million were flat in local currency¹ when excluding the impact of portfolio pruning, and down 1.2 % when included. Pricing had a positive impact on the Group of 0.7 %, while volumes were down 1.9 %, impacted by the Middle East conflict and portfolio pruning. In Swiss francs, sales were 6.1 % lower versus H1 2025, with the currency impact of 4.9 % mainly driven by the US dollar, the Indian rupee and the Euro.

Care Chemicals sales increased by 2.3 % in local currency excluding the pruning impact (+ 0.1 % when included), with growth in Personal & Home Care, followed by Mining Solutions and Industrial Applications. Oil Services increased on an underlying basis when excluding the pruning impact, while sales declined in the other segments. In Catalysts, sales decreased by 8.3 % in local currency, driven by lower volumes as the Middle East conflict led to delays in customer orders, particularly in the Middle East and Asia. Sales grew in Specialties, declined slightly in Ethylene and more pronouncedly in Syngas & Fuels and Propylene. Adsorbents & Additives sales increased by 1.3 % in local currency, driven by strong growth in Additives.

Group EBITDA before exceptional items decreased by 7.7 % to CHF 331.3 million against the prior year. The corresponding margin of 17.8 % vs. 18.1 % recorded in the prior year was driven by a strong performance in Care Chemicals offsetting most of the Middle East impact in Catalysts. Raw materials (+ 1.5 %) and energy cost (+ 4.0 %) increased, while logistics costs (- 1.1 %) were lower, and all were offset by pricing. The delivery of the performance improvement programs resulted in cost savings of CHF 19 million in the first half year of 2026, underpinning expected run-rate savings of CHF 90 million for the year vs. CHF 50 million in the prior year.

Reported EBITDA for the Group increased by 3.1 % to CHF 300.2 million due to lower restructuring costs compared to the prior year. As a result, the EBITDA margin of 16.1 % improved by 140 basis points from the 14.7 % reported for the same period in 2025.

The total Group net result was CHF 85.0 million versus CHF 44.2 million in the previous year, largely driven by lower restructuring charges and impairments.

Cash generated from operating activities for the Group was CHF 168.7 million, compared to CHF 115.9 million in the first half of 2025. This was the result of effective net working capital management and higher profitability. The Free Cash Flow conversion (LTM, July 2025 to June 2026) increased by 15 percentage points to 52 % from 37 % reported at the end of H1 2025.

Net debt for the Group increased to CHF 1 493.1 million versus CHF 1 413.9 million recorded at the end of 2025, resulting in a net debt-to-EBITDA before exceptional items ratio (LTM) of 2.2 x at the end of the second quarter, compared to 2.0 x at the end of 2025. 

Innovation and sustainability

Clariant’s bio-based Licocare™ RBW rice bran wax additives received an expansion in its approval from the U.S. Food and Drug Administration (FDA) for use in rigid PVC single- and repeated use food-contact applications. In addition to the FDA, Clariant’s Licocare RBW portfolio has been granted several food approvals under different jurisdictions including Europe and Japan, providing manufacturers globally with the regulatory framework needed to implement renewable alternatives in their food-contact applications.

Overall, Clariant’s strategic focus on innovative chemistry was reflected in a further increase in innovation sales to 19.4 % for the last twelve months (July 2025 to June 2026), up from 18.8 % in the full year 2025.

Clariant’s Scope 1 and 2 total greenhouse gas emissions were 2.3 % lower at 0.42 million metric tons in the last twelve months (July 2025 to June 2026), compared to 0.43 million metric tons in the full year 2025. The total indirect greenhouse gas emissions for purchased goods and services (Scope 3.1 and 3.12 emissions) declined by 1.1 % to 3.69 million metric tons in the last twelve months, compared to 3.73 million metric tons in the full year 2025.

Ethylene claims update – Clariant dismissed

On 29 July 2026, the Amsterdam District Court dismissed Clariant from the damage claim brought by Shell in its entirety against the company and three other defendants. The Court's ruling confirms Clariant's position that Shell suffered no harm attributable to Clariant's conduct. The judges particularly found no proof that the information exchange among buyers caused market harm or altered pricing metrics like the Monthly Contract Price (MCP). Clariant has consistently maintained that the relevant conduct produced no effect on the market. Clariant will continue to defend itself vigorously in the remaining proceedings in the Netherlands and Germany.

The Amsterdam District Court has also dismissed a claim seeking declaratory judgment of liability of the defendants for the same conduct brought by a claim vehicle »Stichting Ethylene Claims«.

Guidance remains unchanged 

For the full year 2026, Clariant expects continued challenging and volatile market conditions with geopolitical challenges, uncertainties and risks. The conflict in the Middle East will continue to impact orders in Catalysts and Oil Services (Care Chemicals). Clariant continues to drive its proven value-based price management in order to mitigate the significant annualized cost inflation in raw material, energy and logistic costs, supported by its global production network.

The company continues to expect sales in local currency to be around flat as it looks to offset a negative top-line impact for the Group of 1 % (2 % in Care Chemicals) from portfolio pruning in the prior year. Growth is expected in Adsorbents & Additives with slight underlying growth in Care Chemicals, while sales in Catalysts are expected to be below the levels of 2025.

Clariant expects an EBITDA margin before exceptional items of around 18 % in 2026. This is supported by the successful implementation of performance improvement programs, which are expected to deliver CHF 90 million run-rate savings for the year 2026. In 2027, Clariant expects to complete the CHF 100 million programs. Clariant expects to achieve a free cash flow conversion of well over 40 % in 2026.

Clariant remains committed to the delivery of its medium-term targets, to be achieved by 2027 at the latest. 

¹ All references to local currency growth, pricing, volumes, and scope exclude the price impact from hyperinflation country Türkiye. Currency translation impact includes the price impact from hyperinflation country Türkiye.