Clariant AG ((CH:CLN)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Clariant AG’s recent earnings call reflected a mixed sentiment, showcasing strong performance improvements in EBITDA margin and cost management, yet facing challenges in sales growth, particularly in the Catalysts segment and due to currency effects. Despite these hurdles, the company expressed optimism about maintaining profitability margins in a challenging market environment.
EBITDA Margin Improvement
Clariant reported a significant improvement in its EBITDA margin, which increased by 230 basis points to 17.9%. This enhancement was attributed to the company’s performance improvement programs and effective price and cost management strategies. EBITDA before exceptional items rose by 5% in absolute terms, reaching CHF 162 million.
Savings Program Progress
The company’s savings program is showing promising results, with CHF 19 million saved in Q3 alone, bringing total savings to CHF 31 million for the first nine months of 2025. Clariant is on track to achieve its target of CHF 80 million in savings by 2027.
Care Chemicals Margin Uplift
Clariant’s Care Chemicals segment recorded a strong margin uplift to 18.9%, marking a 150 basis points improvement. This was driven by a favorable mix, pricing discipline, and contributions from performance improvement programs.
Adsorbents and Additives Growth
Sales in the Adsorbents and Additives segment increased by 1% in local currency. Profitability in this segment was driven by pricing, mix effects, and benefits from performance improvement programs.
Sales Decline
The company experienced a 3% decrease in sales in local currencies and a 9% decrease in Swiss francs, largely impacted by a 6% negative currency translation effect.
Catalysts Segment Weakness
Sales in the Catalysts segment decreased by 8% in local currency, primarily due to lower volumes and weak demand, especially in China. This segment saw a high double-digit percentage rate decline in Propylene and Catalysts.
Challenges in U.S. Renewable Fuels
Adsorbents sales in the Americas decreased at a high single-digit percentage rate, affected by regulatory uncertainties and temporary weakness in demand for biodiesel and sustainable aviation fuel (SAF).
Forward-Looking Guidance
Looking ahead, Clariant provided guidance for the full year 2025, expecting local currency sales growth at the lower end of its 1% to 3% range, due to weaker industrial production and consumer sentiment. The company remains confident in maintaining improved profitability levels, projecting an EBITDA margin before exceptional items of 17% to 18%. Despite a 3% sales decrease in local currencies, Clariant achieved a 5% growth in EBITDA before exceptional items in Q3 2025.
In summary, Clariant AG’s earnings call highlighted a robust improvement in profitability margins and cost management, despite facing sales growth challenges. The company’s strategic initiatives in savings and performance improvement programs are yielding positive results, positioning Clariant to maintain its profitability targets in a challenging market landscape.