Clariant delivers third year of strong EBITDA margin improvement – EBITDA margin before exceptional items up 180 basis points versus prior year to 17.8 %

AD HOC ANNOUNCEMENT PURSUANT TO ART. 53 LR

• Q4 2025 sales increased by 1 % in local currencies¹ to CHF 1.028 billion due to strong volume growth in Catalysts and Care Chemicals
• Q4 2025 EBITDA margin before exceptional items increased by 240 basis points to 17.1 %, with strong profitability improvement in Catalysts and Care Chemicals
• FY 2025 sales of CHF 3.915 billion flat in local currencies¹ including 1 % scope (Lucas Meyer Cosmetics)
• FY 2025 EBITDA margin before exceptional items increased by 180 basis points to 17.8 %, driven by performance improvement programs and cost productivity across the entire organization
• Performance improvement program achieved CHF 50 million savings in 2025, on track to deliver CHF 80 million with the remainder largely expected in 2026
• FY 2025 free cash flow conversion of 42 % increased by 10 percentage points, already achieving the medium-term target level 
• Stable distribution of CHF 0.42 per share to be proposed to AGM on 1 April 2026
• Outlook 2026: local currency sales to be around flat; EBITDA margin before exceptional items at around 18 %; medium-term targets confirmed 

“In 2025, Clariant delivered an EBITDA margin of 17.8 % before exceptional items, a significant year-on-year increase of 180 basis points. This represents the third consecutive year of EBITDA improvement, both in absolute and margin terms. We achieved this through our performance improvement programs, effective price management, and cost productivity. We made substantial progress in all pillars of our purpose-led growth strategy, including our non-financial and sustainability targets in 2025. With strong execution of our commercial excellence programs, our customer Net Promoter Score (cNPS) increased to 50, placing Clariant in the top quartile among peers. We accelerated the rollout of CLARITY™, our digital service platform designed to optimize catalyst management and performance monitoring, almost doubling the number of users to over 800 in 38 countries. We achieved growth in innovation sales, reaching 18.8 %, reflecting the strength of Clariant's innovation pipeline. Our focus on safety resulted in a Days Away, Restricted, or Transferred (DART) rate of 0.13, significantly down from 2024 and placing Clariant in the top quartile of the chemical industry,” said Conrad Keijzer, Chief Executive Officer of Clariant. “For 2026, we expect sales in local currency to be around flat in a continued challenging market environment, while in addition we offset our portfolio pruning in the prior year. We expect an EBITDA margin of around 18 % before exceptional items,” Conrad Keijzer added.

Fourth Quarter 2025 Group Figures
MUTTENZ, 26 FEBRUARY 2026 - Clariant, a sustainability-focused specialty chemical company, today announced fourth quarter 2025 sales of CHF 1.028 billion, representing an increase of 1 % in local currency¹ versus Q4 2024. Pricing was flat, while volumes increased by 1 %. Sales in Swiss francs declined by 6 % year on year due to continued significant currency headwinds.

Care Chemicals sales increased by 1 % in local currency versus Q4 2024. Pricing was down slightly by 1 % due to formula-based price adjustments linked to raw material costs. Volumes grew by 2 %. Growth was strongest in Mining Solutions and Oil Services, followed by Personal & Home Care. Sales declined slightly in Base Chemicals, followed by Industrial Applications, in a challenging market environment. Crop Solutions came in lower than the prior year, when a restocking effect led to a strong comparison base. Sales in Catalysts increased by 5 % in local currency, driven entirely by higher volumes. Strong growth in Ethylene and Syngas & Fuels more than offset the declines in Specialties and Propylene. Adsorbents & Additives sales decreased by 3 % in local currency, as positive pricing of 1 % did not offset 4 % lower volumes.

Group EBITDA before exceptional items of CHF 176 million increased by 10 % year on year with the corresponding margin of 17.1 % representing a 240-basis points improvement versus 14.7 % in the prior year. This was the result of continued strong execution of the performance improvement programs in all business units, effective cost management, a positive mix with strong growth in Catalysts, and operating leverage. Strong pricing management in a deflationary raw material environment (- 2 %) contributed positively to profitability and offset higher energy costs (+ 4 %).

Key measures to deliver the targeted CHF 80 million savings from the performance improvement program (Investor Day 2024) by 2027 were successfully implemented and contributed CHF 19 million in the fourth quarter. Cost-efficient execution of the program meant that no additional restructuring charges were booked during the quarter.

Reported EBITDA for the Group increased by 8 % to CHF 193million. EBITDA margin of 18.8 % increased by 240 basis points versus 16.4 % reported in the fourth quarter of 2024. Positive one-off gains from portfolio pruning measures positively contributed to the reported EBITDA.

Full Year 2025 Group Figures
In the full year 2025, sales of CHF 3.915 billion were flat in local currency¹ and declined by 6 % in Swiss francs. Pricing was flat, while volumes were down 1 %. Scope had a positive impact of 1 %, reflecting the contribution of Lucas Meyer Cosmetics by Clariant. The currency impact of - 6 % was driven by movements in the US dollar, Indian rupee, Brazilian real, Euro, and Chinese yuan.

Care Chemicals sales were flat in local currency. Pricing was stable, while organic volumes declined by 1 % and the acquisition of Lucas Meyer Cosmetics contributed 1 % to scope. Growth was strongest in Crop Solutions, followed by Mining Solutions and Personal & Home Care. Industrial Applications had the most pronounced decline during the year as customer demand was impacted by overall market uncertainty, including tariffs. In Catalysts, sales decreased by 2 % in local currency as a result of stable pricing and lower volumes. Growth in Ethylene catalysts and Syngas & Fuels did not entirely offset declines in Propylene and Specialties. Adsorbents & Additives sales were flat in local currency, with pricing up 1 % and volumes down 1 %. Sales growth in Additives offset a decline in Adsorbents.

Group EBITDA before exceptional items increased by 5 % against the prior year to CHF 697 million, while the corresponding margin increased by 180 basis points to 17.8 % and was driven by performance improvement programs and cost productivity across all Business Units and Corporate functions. Strong pricing management against slightly deflationary raw material costs (- 1 %) supported the margin improvement.

Key measures to deliver the targeted CHF 80 million savings from the performance improvement program (Investor Day 2024) by 2027 were successfully implemented and cumulatively contributed CHF 50 million in 2025. These include announced headcount reductions, the closure of two sites and two production lines, and procurement savings related to structural changes in qualifying alternative suppliers and best-practice contract management. We recorded CHF 63 million of restructuring charges in 2025 versus an expected CHF 75 million as a result of cost-efficient execution and phasing. 

Reported EBITDA for the Group declined by 2 % to CHF 643 million. The CHF 63 million restructuring charges booked during the year were partially offset by one-off gains from the portfolio pruning measures. Reported EBITDA margin of 16.4 % increased by 60 basis points compared to 2024.

Group EBIT for the full year 2025 decreased to CHF 362 million from CHF 440 million in the prior year due to lower sales, restructuring charges of CHF 63 million and impairments of CHF 29 million related to the portfolio pruning.

In the full year 2025, the Group recorded a net loss of CHF 41 million versus a net income of CHF 280 million in the prior year. This was largely due to a non-cash cumulative translation adjustment (CTA) of CHF 230 million, stipulated by IFRS following the divestment of the Group’s operations in Venezuela. Adjusted for that exceptional accounting effect, the Group’s net income was CHF 189 million.

Net cash generated from operating activities for the total Group was stable at CHF 419 million versus CHF 418 million in the prior year. Disciplined capital expenditure supported the increase in free cash flow of CHF 64 million to CHF 273 million, compared to CHF 209 million in 2024. The free cash flow conversion rate of 42 % for the full year 2025 represents a significant improvement versus the 32 % achieved in the prior year and delivers on the medium-term target of a conversion rate of around 40 %.

Net debt for the total Group decreased to CHF 1.413 billion versus CHF 1.489 billion recorded at the end of 2024 due to improved cash generation. The resulting net debt to EBITDA before exceptional items ratio stood at 2.03x at the end of 2025. This was an improvement compared to 2.25x recorded in the prior year and indicates the company’s commitment to maintaining its investment grade rating.

The Board of Directors recommends a regular distribution to shareholders of CHF 0.42 per share to the Annual General Meeting (AGM) on 1 April 2026 based on Clariant’s performance in 2025. This distribution is proposed to be made through a capital reduction by way of a par value reduction.

The Board of Directors proposes the reelection of Ben van Beurden as Chairman. Following the Board’s decision to reduce its size from eleven to eight members and enhance corporate governance, Roberto Gualdoni, Geoffery Merszei, Eveline Saupper, Peter Steiner, and Konstantin Winterstein will not stand for reelection at the AGM. The Board of Directors has proposed to newly elect Regula Wallimann and Albert Manifold to the Clariant Board, while Claudia Suessmuth Dyckerhoff, Susanne Wamsler, Ahmed Mohammed Al Umar, Jens Lohmann, and Thilo Mannhardt all stand for reelection. The Clariant Integrated Report 2025 will be published on 27 February 2026.

Outlook 2026
For the full year 2026, Clariant expects macroeconomic challenges, uncertainties, and risks to remain. Clariant therefore expects sales in local currency to be around flat as the company looks to offset a negative top-line impact for the Group of 1 % (2 % in Care Chemicals) from its portfolio pruning in the prior year. Slight growth is expected in Care Chemicals (underlying) and Adsorbents & Additives, while sales in Catalysts are expected to be at levels similar to those of 2025.

Clariant expects an EBITDA margin before exceptional items of around 18 % in 2026. The CHF 80 million performance improvement program, as announced during the company’s Investor Day in November 2024, is expected to deliver most of the remaining cost savings during the year, after CHF 50 million savings were achieved in 2025. Clariant also expects to continue to achieve a free cash flow conversion of around 40 % in 2026. 

Clariant reiterates its commitment to its medium-term targets, to be achieved by 2027 at the latest: 4 – 6 % local currency sales growth (in a normalized market of 2 – 4 %); 19 – 21 % reported EBITDA margin; and around 40 % free cash flow conversion.

Substantial progress on all pillars of Clariant’s purpose-led growth strategy
Clariant achieved substantial progress in executing its purpose-led growth strategy centered on "Greater chemistry – between people and planet". Built on four strategic pillars – customer focus, innovative chemistry, leading in sustainability, and people engagement – the strategy reflects Clariant's integrated approach to creating value for all stakeholders. By shaping the future alongside customers, accelerating innovation that expands what is possible, leading the transition toward sustainability, and building a culture of possibilities that empowers every individual, Clariant is driving transformative change across the chemical industry while balancing business growth with environmental responsibility and social impact.

With a strong execution of our commercial excellence programs, Clariant delivered a further improvement in the satisfaction of its customers, measured by the customer Net Promoter Score (cNPS). In 2025, this cNPS increased to 50 in 2025 versus 45 in 2024, with the company receiving outstanding scores for “product quality,” “technical support,” and “customer service.” Overall, this score placed Clariant in the top quartile among peers.

Clariant successfully accelerated the rollout of CLARITY™, its digital service platform designed to optimize catalyst management and performance monitoring. This solution provides customers with real-time data analytics, predictive maintenance capabilities, and operational insights to maximize the efficiency and lifespan of catalysts used in industrial processes. CLARITY™ helps customers make data-driven decisions about their catalyst operations, ultimately improving plant productivity, reducing downtime, and enhancing overall process economics. By the end of 2025, CLARITY™ has onboarded over 220 customer plants and over 800 users in 38 countries, compared to over 120 customer plants and 450 users in 28 countries at the time of the Investor Day in 2024.

Clariant demonstrated strong improvement in innovation sales, reaching 18.8 %, marking a significant rebound from the 16.9 % recorded in 2024. This trajectory reflects the strength of Clariant’s innovation pipeline. The company maintained its commitment to research and development with sustained investments of 3 % of sales in 2025. This dedication to innovation was further validated by customers and industry associations through multiple awards and recognitions received throughout the year.

Clariant’s Scope 1 & 2 total greenhouse gas (GHG) emissions fell to 0.43 million metric tons in 2025, a decline of 11 % from 0.49 million metric tons in the full year 2024. The main driver for the GHG reduction in 2025 was a continued transition to green electricity. The share of renewable electricity increased from 69 % to 76 % due to green electricity supply contracts and improved market-based emission factors of selected suppliers. The total indirect greenhouse gas emissions for purchased goods and services (Scope 3.1) were 6 % lower at 2.41 million metric tons in the last twelve months, compared to 2.58 million metric tons in the full year 2024, supported by transformative actions at suppliers and lower volumes. 

In 2025, Clariant achieved leadership-level scores across all environmental categories of the Carbon Disclosure Project (CDP), which is one of the most widely used environmental disclosure platforms globally. Ranking in the top 1 % of all companies evaluated worldwide, Clariant was awarded “A” for Climate Change and Forests, and “A-“ for Water Security. These leading scores demonstrate decisive progress over time, credible targets, verified data, and clear accountability at the top.

In 2025, Clariant also achieved a DART (Days Away, Restricted, or Transferred) rate of 0.13, down from 0.17 in 2024. This result places Clariant in the top quartile of the chemical industry globally and reflects the high awareness of and continued commitment to safety, training, and accountability.

In January 2026, Clariant invited all employees to participate in the annual engagement survey. The participation rate increased to 88 %, compared to 86 % in 2025. Meaningful progress has been achieved in the Employee Engagement which at 87 % positions Clariant in the top quartile, compared to relevant industry peers. Continuous improvement was achieved in the Employee Net Promoter Score (eNPS), increasing from + 34 in 2025 to + 37 in 2026.

For further details please download the pdf version of the media release.

¹All references to local currency growth, pricing, volumes, and scope exclude the impact from hyperinflation countries Argentina and Türkiye. All references to currency include a net impact from hyperinflation countries Argentina and Türkiye.