Feb 26 (Reuters) - Swiss speciality chemicals maker Clariant said on Thursday it expected broadly flat sales in local currencies in 2026, citing a persistently challenging market environment. The
Clariant's Strategic Cost Cuts Bolster Earnings Amid Industry Slowdown
Feb 26 (Reuters) - Swiss speciality chemicals maker Clariant expects cost cuts to drive a slight margin improvement in 2026, even as sales stagnate in a persistently challenging market environment, it said on Thursday.
Last year was another difficult one for the chemical industry, which suffered from weak demand in key end-markets, high energy prices, strong Chinese competition and costs of U.S. import tariffs. German chemicals lobby VCI has also said the sector will likely stagnate in 2026.
Clariant's Financial Outlook and Performance
Despite this, Clariant forecast a core profit margin, the proportion of earnings before interest, taxes, depreciation and amortisation to sales, of about 18% before exceptional items, compared with 17.8% in 2025.
Its shares rose nearly 3% by 0808 GMT. Analysts from Zuercher Kantonalbank said the margin outlook was positive, especially as local-currency sales are expected to be flat for a second year in a row.
Earnings will be supported by continued pricing discipline and effective cost management to compensate for inflation in Clariant's cost base, CEO Conrad Keijzer said during a call with journalists.
Impact of Rising Energy Costs
"Energy costs (in Europe) have more than doubled compared to historic levels, and especially the high energy intensive part of the chemical industry," Keijzer said, attributing this change to Russia sanctions that cut access to cheap piped-in gas flows.
Clariant is in the process of cutting costs by 80 million Swiss francs ($104 million) by 2027 as part of a margin-improvement programme. It said the plan delivered savings of 50 million francs last year and was on track to meet its goal, with most of the remaining savings expected in 2026.
Fourth-quarter EBITDA grew 10% to 176 million francs before exceptional items, beating analysts' forecast of 159 million francs in a company-provided poll.
Dividend Proposal and Financial Projections
Clariant proposed a dividend of 0.42 franc per share for 2025, in line with last year's payout.
($1 = 0.7718 Swiss francs)
(Reporting by Marta Frąckowiak and Maria Rugamer in Gdansk; Editing by Milla Nissi-Prussak)
