Clariant delivers resilient performance in challenging environment

AD HOC ANNOUNCEMENT PURSUANT TO ART. 53 LR

• Q1 2026 sales decreased by 2 % in local currencies¹ to CHF 918 million with the Middle East conflict impacting Catalyst volumes and portfolio pruning affecting Care Chemicals; 0.5 % decline excluding portfolio pruning
• Q1 2026 EBITDA margin before exceptional items of 17.5 % decreased by 130 basis points compared to a strong Q1 2025 mainly due to the Middle East conflict and a one-off impacting Catalysts
• Q1 2026 free cash flow conversion improved by 12 percentage points to 54 % (LTM basis), achieved through effective net working capital management and continued disciplined Capex
• On track to achieve the remaining CHF 30 million of the total CHF 80 million performance improvement program savings (Investor Day 2024) already in 2026, with CHF 9 million achieved in the first quarter
• Guidance 2026 remains unchanged while Middle East conflict particularly impacting demand in our Catalysts business, causing increasing input costs, and overall elevated uncertainty and volatility

“In the first quarter of 2026, Clariant delivered flat underlying sales, excluding the effects of our proactive portfolio pruning measures. The EBITDA margin of 17.5 % before exceptional items was 130 basis points lower year on year against a strong comparison base, with the Middle East conflict impacting our Catalysts business, in particular. We achieved a twelve-percentage point improvement in free cash flow conversion to 54 % and are on track to deliver full run-rate savings of CHF 80 million from our performance improvement program by year end. This is one year ahead of our commitment. We continued to drive innovation with an increased innovation sales ratio of 19.9 % and we received six prestigious innovation awards at in-cosmetics Global in Paris and Chinaplas in Shanghai,” said Conrad Keijzer, Chief Executive Officer of Clariant. 

“Our guidance for 2026 remains unchanged, with sales expected to be around 2025 levels in local currency and an EBITDA margin of around 18 % before exceptional items. The Middle East conflict is mainly impacting our Catalysts customers in the Middle East and Asia, with sales now expected to be below the prior year. At the same time, we expect growth in Adsorbents & Additives, as well as continued slight underlying growth in Care Chemicals, despite the Middle East impacts in Oil Services and increasing risks on the overall demand environment. To mitigate the inflation in raw materials and energy, we activated our proven value-based price management and further continue our focus on cost initiatives. By leveraging our global network and employing proactive logistics we provide continued supply for our customers,” Conrad Keijzer added.

First Quarter 2026 Group Discussion

MUTTENZ, 8 MAY 2026 - Clariant, a sustainability-focused specialty chemical company, today announced first quarter 2026 sales of CHF 918.0 million, down 2.0 % in local currency¹ and 0.5 % lower excluding the impact from portfolio pruning. In Swiss francs, sales were 9.4 % lower versus Q1 2025. Pricing decreased by 1.5 %, mainly driven by formula-based pricing adjusting to lower raw material prices recorded until the start of the conflict in the Middle East in late February. Volume decreased by 0.5 %, impacted by the Middle East conflict and the portfolio pruning measures. The negative currency impact was 7.4 %, mainly driven by the US dollar, the Indian rupee, and the Euro. 

Care Chemicals sales decreased by 1.9 % in local currency versus Q1 2025. Pricing was down 2.6 %, driven by formula-based price adjustments, as raw materials costs had declined until the start of the conflict in the Middle East. Volumes grew by 0.7 %, and by 3.5 % when excluding the portfolio pruning impact. Sales grew in Mining Solutions and Personal & Home Care, while sales in the other segments declined. Catalysts’ sales declined by 1.6 % in local currency. While pricing was up by 0.4 %, volumes declined by 2.0 %, as the conflict in the Middle East caused local orders to be pushed out. Sales grew in Ethylene catalysts (including a one-off precious metal sale) and Specialties, with declines in the other segments. Adsorbents & Additives sales decreased by 2.7 % in local currency, as growth in Additives was more than offset by a decline in Adsorbents, as the growth in renewable fuel applications in the United States only started towards the end of the quarter. Pricing was down slightly by 0.2 %, while volumes declined by 2.5 %.

Group EBITDA before exceptional items of CHF 160.2 million decreased by 15.9 % year on year, with a corresponding margin of 17.5 % compared to 18.8 % in the prior year. The 130-basis point decrease was the result of a significant impact from the Middle East conflict on Catalysts volumes, reduced operating leverage, and a dilutive one-off precious metal sale. Additionally, an unfavorable mix in Catalysts and Care Chemicals as well as an inventory revaluation effect in Care Chemicals weighed on profitability. Raw material costs decreased (-4.5 %), while energy costs increased (+2.2 %) compared to the prior year.

Key measures to deliver the remaining CHF 30 million savings from the CHF 80 million performance improvement program were successfully implemented and contributed CHF 9 million in the first quarter. 

Group reported EBITDA increased by 3.4 % to CHF 157.8 million, and the EBITDA margin of 17.2 % improved by 210 basis points compared to the 15.1 % reported in the first quarter of 2025. These improvements were the result of lower restructuring charges compared to the prior year.

At the end of the first quarter of 2026, the free cash flow conversion (LTM, April 2025 to March 2026) increased to 54 % from 42 % reported at the end of 2025, driven mainly by effective net working capital management and disciplined capex spending.

Innovation and sustainability

At in-cosmetics Global 2026 in Paris, Clariant unveiled its latest high-performance beauty innovations, reaffirming its commitment to delivering complete formulation solutions. Highlights were the introductions of AlgaSurge™, a next-generation active ingredient poised to redefine skin longevity formulations, and new hair care application Lysofix™ Liquid, an emulsifier that strengthens fiber integrity from within. The Clariant Personal Care and Lucas Meyer Cosmetics team were recognized at the tradeshow with four awards for their innovation and science efforts. At Chinaplas 2026, Clariant demonstrated how its comprehensive additives portfolio delivered enhanced performance while advancing environmental and regulatory compliance goals. This included its PFAS-free polymer processing aids (AddWorks PPA), which were awarded an innovation award for their compatibility with food-contact applications. The wide range of Clariant’s Exolit OP halogen-free flame retardants was also on display, with its outstanding performance in high glow-wire ignition temperatures being recognized with an industry leadership award. 

Overall, Clariant’s strategic focus on innovative chemistry was reflected in a further increase in innovation sales to 19.9 % for the last twelve months (April 2025 to March 2026), up from 18.8 % in the full year 2025. This increase was supported by the expansion of applications of Licocare™ rice bran wax (RBW). These are renewable bio-based waxes from non-food-competing rice bran oil by-products that can be used in plastics, coatings, and inks. They deliver strong performance while considerably reducing CO₂ emissions, due to the use of less carbon raw materials and more than 30 % savings in energy consumption during manufacturing. Earlier in 2026, Clariant received European Commission approval for the use of renewable rice bran wax additives in food-contact plastics, demonstrating that sustainable solutions can meet the highest regulatory standards at scale and support attractive growth aligned with ESG trends.

Clariant’s Scope 1 and 2 total greenhouse gas emissions fell to 0.42 million metric tons in the last twelve months (April 2025 to March 2026), a decline of 2.3 % from 0.43 million metric tons in the full year 2025. This development was driven by a further transition to green electricity. The total indirect greenhouse gas emissions for purchased goods and services (Scope 3.1 and 3.12 emissions) were practically flat at 3.72 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 challenging market conditions with increased macroeconomic challenges, uncertainties and risks. The conflict in the Middle East will continue to negatively impact customer demand in the Catalysts and Oil Services (Care Chemicals) businesses, and result in an inflationary raw material, energy and logistic costs environment. To mitigate these cost increases, Clariant activated its proven value-based price management, further supported by a continued focus on active cost initiatives in a challenging demand environment. By leveraging its global production network and proactive logistics, Clariant provides continued supply for its customers.

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 its portfolio pruning in the prior year. Growth is expected in Adsorbents & Additives with slight underlying growth in Care Chemicals, while sales in Catalysts are now expected to be below the levels 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 the remaining cost savings during the year, after CHF 59 million savings were achieved by end of Q1 2026. Clariant expects to achieve a free cash flow conversion of over 40 % in 2026. 

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

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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.