Clariant delivers strong local currency sales growth in volatile trading conditions, confirms FY guidance

AD HOC ANNOUNCEMENT PURSUANT TO ART. 53 LR

• Q3 2026 sales increased by 5.6 % in local currencies¹ to CHF 968.8 million, with positive pricing and volumes in Care Chemicals and Adsorbents & Additives, while Catalysts’ volumes remain impacted by Middle East conflict
• Q3 2026 EBITDA margin before exceptional items decreased by 230 basis points to 15.6 % as continued improvement in Adsorbents & Additives was more than offset by two effects of broadly similar magnitude. First, Corporate costs had a positive phasing effect from prior year that normalized in the current year. Second, Care Chemicals and Catalysts saw a less favorable mix and volatile raw materials that affected costs and valuation of inventory
• 9M 2026 sales increased by 1 % in local currencies to CHF 2 828.1 million, driven by positive pricing with resilient volumes
• 9M 2026 EBITDA margin before exceptional items of 17.1 % versus 18.0 % in the prior year as margin improvement in Care Chemicals and Adsorbents & Additives was more than offset by the Middle East impact on Catalysts
• Free cash flow conversion improved by 9 percentage points to 48 % (LTM), achieved through improved operating cash flow, disciplined capex, and effective net working capital management
• Contributions from performance improvement programs delivered CHF 79 million run-rate cost savings year to date (Q3 2026: CHF 10 million), on track to deliver full CHF 90 million in 2026
• Guidance for 2026 remains unchanged with strong order book into end of the year

“In the third quarter of 2026, Clariant delivered strong local currency sales growth of 5.6 %, demonstrating the effectiveness of our price management and the resilience of our portfolio in a volatile operating environment. Care Chemicals and Adsorbents & Additives recorded pricing-led growth, while Catalysts’ volumes remained impacted by the Middle East conflict. Our Group EBITDA margin before exceptional items of 15.6 % reflects an improvement in Adsorbents & Additives, which was more than offset by two effects of broadly similar magnitude: a one-off year-on-year impact from the phasing of provisions in Corporate costs, and the combined impact of a less favorable mix and of volatile raw materials on cost and inventory valuation in Care Chemicals and Catalysts. Effective working capital management and disciplined capital expenditure improved free cash flow conversion by 9 percentage points to 48 % for the last twelve months, up from 39 % in the prior year,” said Conrad Keijzer, Chief Executive Officer of Clariant.

"Our full year 2026 guidance remains unchanged, supported by a strong order book, particularly in Catalysts, for the fourth quarter and continued momentum in our performance improvement programs, which remain on track to deliver CHF 90 million in run-rate savings for 2026 and the full CHF 100 million by 2027. While inflationary pressures in raw materials, energy and logistics remain a challenge, our global production network and proven pricing capabilities position us well to protect margins as we close out the year," Conrad Keijzer added.

Third Quarter 2026 Group Discussion

MUTTENZ, 3 NOVEMBER 2026 – Clariant, a sustainability-focused specialty chemical company, today announced third quarter 2026 sales of CHF 968.8 million, representing an increase of 5.6 % in local currency versus Q3 2025. When excluding the impact of portfolio pruning, sales in local currency increased by 6.7 %. Pricing was up 5.7 %, with increases in all business units in response to inflationary raw material, energy, and logistics costs. Volume increased by 1.0 % excluding the impact of portfolio pruning (- 0.1 % when included). In Swiss francs, sales were 6.9 % higher versus Q3 2025, with the positive currency impact of 1.3 % mainly driven by the Chinese yuan, Brazilian real, and the US dollar.

Care Chemicals sales increased by 6.6 % in local currency versus Q3 2025 and by 8.7 % when excluding the impact of portfolio pruning. Pricing was up 6.5 % with volumes modestly up (0.1 %) and 2.1 % growth excluding pruning. Sales grew in the industrial businesses (Industrial Applications, Mining Solutions and Base Chemicals) and in Personal & Home Care. Sales in Crop Solutions were flat, while Oil Services sales were lower due to the pruning measures and the Middle East impact. Catalysts’ sales increased by 1.8 % in local currency, as positive pricing of 3.7 % offset the volume decline of 1.9 %. The business saw a continued impact from the ongoing volatile situation in the Middle East, which led customers to delay orders. Sales grew in Propylene against a low comparable base, while other segments declined. Adsorbents & Additives sales increased by 6.4 % in local currency, with positive pricing of 5.4 % and volume growth of 1.0 %. Sales increased strongly in Additives, driven by both pricing and volume growth, while sales in Adsorbents increased modestly as growth in the Americas was more than offset by softer demand in Europe and APAC. 

Group EBITDA before exceptional items of CHF 151.5 million decreased by 6.5 % year on year, with a corresponding margin of 15.6 % compared to 17.9 % in the prior year, which was positively impacted by a phasing of provisions in Corporate costs. The 230-basis point decrease reflects the normalization of this effect, coupled with the low operating leverage in Catalysts as well as mix and effects of volatile raw materials on costs and valuation of inventory in Care Chemicals and Catalysts. Benefits from the performance improvement programs supported margins, particularly in Adsorbents & Additives, while higher year-on-year prices for raw materials (12.0 %), energy (9.0 %) and logistics (23.7 %) were largely offset by pricing. 

Key measures to deliver the targeted CHF 100 million performance improvement programs by 2027 are being implemented and cumulatively contributed CHF 79 million as of 30 September 2026. These include announced headcount reductions and procurement savings, in addition to the closure of two sites and two production lines in 2025. As a result, total cost savings in the third quarter of approximately CHF 10 million contributed positively to offset inflation. Restructuring charges of CHF 6 million related to these savings programs were booked during the quarter.

Group reported EBITDA decreased by 9.3 % to CHF 144.0 million, and the EBITDA margin of 14.9 % decreased by 260 basis points compared to the 17.5 % reported in the third quarter of 2025. Higher restructuring charges compared to the prior year contributed to this decline.

 First Nine Months 2026 Group Discussion

In the first nine months of 2026, sales of CHF 2 828.1 million were up 1.0 % in local currency and 2.1 % when excluding the impact of portfolio pruning. Pricing had a positive impact on the Group of 2.2 %, while volumes slightly declined by 1.2 %, impacted by the Middle East conflict and portfolio pruning. Excluding portfolio pruning, volumes were flat at - 0.1 %. In Swiss francs, sales were 2.0 % lower versus the first nine months of 2025, with a negative currency impact of 3.0 % mainly driven by the Indian rupee, the US dollar, and the Euro.

Care Chemicals sales increased by 2.1 % in local currency and 4.3 % when excluding the pruning impact, with growth in Industrial Applications, Personal & Home Care, Mining Solutions, and Base Chemicals. Oil Services increased on an underlying basis when excluding the pruning impact, while sales declined in Crop Solutions. In Catalysts, sales decreased by 5.1 % in local currency, driven by lower volumes as the Middle East conflict led to delays in customer orders, particularly in the region and in Asia. Sales were lower in all segments except Specialties. Adsorbents & Additives sales increased by 3.0 % in local currency, driven by strong growth in Additives offsetting softer Adsorbents EMEA sales while Adsorbents APAC and Americas were flat.

Group EBITDA before exceptional items decreased by 7.3 % to CHF 482.8 million against the prior year, with the corresponding margin of 17.1 % vs. 18.0 % recorded in the prior year. Margin increases in Care Chemicals and Adsorbents & Additives were more than offset by Catalysts, where lower volumes impacted operating leverage. Higher raw materials (+ 4.0 %), energy costs (+ 5.7 %), and logistics costs (+ 6.2 %) were largely offset by pricing. The delivery of the performance improvement programs resulted in cost savings of CHF 79 million in the first nine months 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 decreased by 1.3 % to CHF 444.2 million despite lower restructuring costs compared to the prior year. The EBITDA margin of 15.7 % improved by 10 basis points from the 15.6 % reported for the same period in 2025.

At the end of the first nine months of 2026, the free cash flow conversion (LTM, October 2025 to September 2026) increased to 48 % from 39 % reported at the end of Q3 2025, driven mainly by improved operating cash flow, disciplined capex spending, and effective net working capital management.

Innovation and sustainability

Clariant’s digital catalyst monitoring platform, CLARITY™, and its AI-powered evolution, CLARITY™ Prime, received the “Best Digital Innovation” at the ICIS Innovation Awards 2026. The platform allows Clariant to provide customers with real-time insights into their plants, greatly improving technical support and decision-making capabilities. CLARITY™ is available in 8 languages and spans 250+ plants, 100+ companies, and 800+ customers in 42 countries, covering 22 processes across oxidation, hydrogenation, petrochemicals, and syngas and hydrogen applications, while the paid add-on service CLARITY™ Prime combines machine learning with first-principles process engineering and is calibrated to individual plant configurations.

Clariant was awarded a first-fill contract to supply its CATOFIN™ catalyst and Heat Generating Material (HGM) for the world's largest licensed propane dehydrogenation (PDH) unit with a capacity of 1.2 million metric tons per annum, being constructed by Zhejiang Petroleum & Chemical Co., Ltd. (ZPC) in Zhejiang Province, China. CATOFIN is a joint offering from Clariant and Lummus that delivers outstanding propylene yields, reliability, and cost efficiency, backed by over 60 years of continuous improvement and with over 40 projects awarded since 2017.

Clariant also made a significant advance in enhancing its local footprint in China with the opening of two new R&D laboratories for its Additives business. This enables the company to accelerate innovation, keep pace with fast-moving market trends, respond more closely to customer needs in China and across Asia Pacific, and extend new solutions to global markets with greater speed and competitiveness. The new laboratories have the capabilities to fully develop new additives, such as next generation flame retardant products, antioxidants, light stabilizers and waxes, entirely within China.

Clariant’s Lucas Meyer Cosmetics business delivered its latest successful innovation to the market with the global launch of KanuFresh™, a 100 % natural-origin active ingredient responsibly sourced from Australian kanuka leaves. This solution delivers long-lasting control of visible signs of perspiration, odor and irritation through a unique multi-action mechanism. The ingredient is supported by a robust package of in vitro and in vivo studies, alongside clinical validation in real-world conditions. KanuFresh™ is readily biodegradable, produced using 100 % renewable energy and made with responsibly sourced raw materials. 

Overall, Clariant’s strategic focus on innovative chemistry was reflected with an increase in innovation sales to 19.0 % for the last twelve months (LTM, October 2025 to September 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 (LTM, October 2025 to September 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 3.5 % to 3.60 million metric tons in the last twelve months, compared to 3.73 million metric tons in the full year 2025.

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 logistics 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 strong order book, particularly in Catalysts, for the final quarter of 2026 and 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 above 45 % 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.