Clariant Ltd

Latest Results (18.05.2026):

Clariant Ltd — Fourth Quarter 2025 (and Full Year 2025): Clariant reported flat full‑year sales of CHF 3,915 million for FY 2025, delivered a material margin improvement (EBITDA before exceptional items margin 17.8%, up c.180 bps vs. 2024) and achieved its medium‑term free cash flow conversion target (~42%) with free cash flow of CHF 273 million (operating cash flow CHF 419m less capex CHF 146m). The Board proposes a regular distribution of CHF 0.42 per share. Management highlighted strong cost‑productivity and progress on a CHF 80m performance‑improvement program, while guiding to roughly flat 2026 sales and an EBITDA margin around 18% (before exceptionals).

Revenue and profitability

FY 2025 sales: CHF 3,915m (flat vs. 2024 on a local‑currency basis). EBITDA b.e.i. margin improved to 17.8% (≈ +180 bps year‑on‑year) driven by pricing discipline, cost productivity and performance‑improvement contributions. Q4 2025 showed margin uplift as well (Q4 EBITDA b.e.i. margin improvement ~+240 bps), with Catalysts and Care Chemicals as key margin drivers.

Cash flow and capital allocation

Free cash flow (FCF) in 2025 was CHF 273m (operating cash flow CHF 419m minus capex CHF 146m), delivering a FCF conversion of ~42% (meeting the company’s medium‑term target). Capex guidance for 2026 is CHF 150–200m. The Board recommends a stable distribution of CHF 0.42 per share (payout ~58% of underlying EPS, excluding exceptionals).

Performance‑improvement program

Investor‑Day program target: CHF 80m run‑rate savings by 2027. Management reported substantial progress in 2025: ~63% of the program achieved (c. CHF 50m of savings) with CHF 19m of savings in Q4; restructuring charges of CHF 63m were recorded in 2025 and remaining savings are expected to flow in 2026.

Segment / Q4 2025 highlights

Q4 2025 sales were reported at ~CHF 1,091m. Care Chemicals and Catalysts delivered volume growth in Q4 (Catalysts benefited from a refill cycle and strong Ethylene and Syngas & Fuels volumes). Adsorbents & Additives saw softer volumes but stable margins supported by pricing and productivity.

Outlook for 2026

Guidance: management expects roughly flat group sales in 2026 (portfolio pruning creates an estimated -1% group headwind and -2% in Care Chemicals) and an EBITDA margin around 18% before exceptional items. FX is modeled as a ~3–5% headwind on sales. Remaining performance‑program savings are expected to be realized mainly in 2026.

Non‑financial / sustainability progress

Clariant reiterated progress on sustainability targets: SBTi reviewed and approved updated GHG targets, reported emissions reductions (notably a double‑digit reduction in Scope 1 & 2 in 2025 and improvement in Scope 3 metrics), and a strong CDP disclosure score (A/A/A‑), underscoring ESG improvements alongside financial results.