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.

Business Summary

⁽¹⁾ Excluding price impact from hyperinflation country Türkiye

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.

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.

Business Discussion

Business Unit Care Chemicals

⁽¹⁾ Excluding hyperinflation accounting country Türkiye

Sales

In the third quarter of 2026, sales in the Business Unit Care Chemicals increased by 6.6 % in local currency and by 8.7 % when excluding the impact of portfolio pruning. Pricing was up 6.5 %, reflecting increased formula-based prices and the continued successful implementation of value-based pricing to offset inflationary input costs due to the conflict in the Middle East. Volumes were flat (0.1 %) when including the impact of the portfolio pruning measures. When excluded, volumes grew by 2.1 %. Sales in Swiss francs increased by 8.4 % versus Q3 2025.

Growth was driven by the industrial businesses (Industrial Applications, Mining Solutions and Base Chemicals) and Personal & Home Care, with positive pricing and higher volumes. Sales in Crop Solutions were flat, while Oil Services sales were lower due to the pruning measures and Middle East impact.

Care Chemicals sales in the Europe, Middle East & Africa region increased at a high-single-digit percentage rate, driven by Mining Solutions and Crop Solutions. In the Americas, sales increased by a mid-single-digit percentage rate, as strong growth in Industrial Applications and Personal & Home Care more than offset lower sales in Crop Solutions and Oil Services that included portfolio pruning. Sales in Asia-Pacific increased at a high single-digit percentage rate, driven by Industrial Applications, Personal & Home Care, and Base Chemicals.

In the first nine months of 2026, sales in the Business Unit Care Chemicals increased by 2.1 % in local currency and by 4.3 % excluding the impact from portfolio pruning. Pricing increased by 2.2 %, while volumes were broadly flat (- 0.1 %) including portfolio pruning and grew by 2.1 % when excluded. Industrial Applications showed the strongest growth, followed by Mining Solutions and Personal & Home Care. In Swiss francs, sales decreased by 0.3 %.

EBITDA Margin

In the third quarter, EBITDA before exceptional items slightly decreased by 0.3 % to CHF 93.0 million, representing a margin of 17.5 % compared to 19.0 % in the prior year. The 150 basis-point decline versus the prior year was the result of less favorable business mix and the effects of volatile raw materials on costs and valuation of inventory..

The reported EBITDA of CHF 92.0 million decreased by 1.1 % compared to the prior year. The corresponding reported EBITDA margin of 17.3 % decreased by 170 basis points versus 19.0 % in the prior year.

For the first nine months of 2026, EBITDA before exceptional items slightly increased by 0.5 % to CHF 311.8 million with the corresponding margin improving to 19.7 % from 19.6 % in the prior year. Reported EBITDA increased to CHF 302.4 million from CHF 276.9 million, with the corresponding margin improving by 160 basis points to 19.1 % from 17.5 %, driven by lower restructuring costs.

Business Unit Catalysts

⁽¹⁾ Excluding hyperinflation accounting country Türkiye

Sales

In the third quarter of 2026, sales in the Business Unit Catalysts increased by 1.8 % in local currency and by 1.3 % in Swiss francs. While pricing was up by 3.7 %, volumes declined by 1.9 % versus Q3 2025 due to an ongoing significant impact from the Middle East conflict.

Sales in Propylene more than doubled against a very low comparison base. Specialties were flat, sales in Ethylene decreased at a double-digit percentage rate, and sales in Syngas & Fuels decreased at a low-single-digit percentage rate.

Catalysts’ sales in the Europe, Middle East & Africa region grew at a mid-single-digit percentage rate driven by Syngas & Fuels and Propylene. In the Americas region, sales declined at a mid-twenties percentage rate due to the project nature of the business in Specialties and Syngas & Fuels. In Asia-Pacific, the largest geographic market, sales grew at a double-digit percentage rate driven by Specialties and Ethylene offsetting declines in Propylene and Syngas & Fuels.

In the first nine months of 2026, sales in the Business Unit Catalysts decreased by 5.1 % in local currency and by 10.7 % in Swiss francs. Positive pricing of 1.6 % was more than offset by a volume decline of 6.7 % due to the Middle East conflict. Sales grew at a double-digit percentage rate in Specialties, while Propylene recorded a low-single-digit level decline, and a double-digit percentage rate decline in Ethylene and Syngas and Fuels.

EBITDA Margin

In the third quarter, EBITDA before exceptional items decreased by 29.4 % to CHF 23.1 million, representing a margin of 13.3 % versus 19.1 % in the prior year. This was driven by lower volumes as high-margin customer orders shifted due to the Middle East conflict, which negatively impacted operating leverage. A less favorable business mix and a negative inventory valuation effect further weighed on the margin.

Reported EBITDA of CHF 23.3 million decreased by 28.3 % compared to the prior year, with a corresponding margin of 13.4 % versus 19.0 %.

EBITDA margin before exceptional items for the first nine months of 2026 decreased to 14.0 % from 19.5 % in the prior year. Reported EBITDA decreased by 39.3 % to CHF 63.2 million from CHF 104.1 million, with the corresponding margin decreasing by 610 basis points to 12.8 % from 18.9 %.

Based on a strong order book, the Catalysts business is expected to deliver a robust final quarter of the year.

Business Unit Adsorbents & Additives

⁽¹⁾ Excluding hyperinflation accounting country Türkiye

Sales

In the third quarter of 2026, sales in the Business Unit Adsorbents & Additives increased by 6.4 % in local currency and by 7.9 % in Swiss francs. Sales were slightly higher in the Adsorbents segments, while Additives’ sales grew strongly at a double-digit percentage rate. For the business unit, pricing was up 5.4 %, while volumes increased by 1.0 %, driven by Polymer Solutions, Coatings & Adhesive and Adsorbents Americas offsetting lower volumes in Adsorbents EMEA and APAC.

In Europe, Middle East & Africa, the largest region, sales grew at a mid-single-digit percentage rate, as strong growth in Additives more than offset lower demand in industrial segments for Adsorbents. In the Americas, sales increased at a double-digit percentage rate, driven by Additives and supported by Adsorbents as the recovery of biofuel purification continued. Asia-Pacific sales increased at a low-single-digit percentage rate, driven by growth in Additives, offsetting lower demand in Adsorbents.

In the first nine months of 2026, sales in the Business Unit Adsorbents & Additives increased by 3.0 % in local currency and by 0.7 % in Swiss francs, as strong growth in Additives more than offset softer demand in Adsorbents. Positive pricing of 2.8 % was supported by resilient volumes of 0.2 %.

EBITDA Margin

In the third quarter, EBITDA before exceptional items increased by 15.1 % to CHF 48.9 million, representing a margin of 18.5 %, which was 110-basis-points higher compared to the 17.4 % margin in the prior year. The improvement was driven by positive mix effects, active margin management and contribution from performance improvement programs.

Reported EBITDA of CHF 41.8 million decreased by 2.1 % compared to the prior year, while the corresponding margin of 15.9 % represents a 160-basis-point decline from 17.5 % in the third quarter of 2025 as a result of higher restructuring charges compared to the prior year.

EBITDA margin before exceptional items for the first nine months of 2026 increased by 20 basis points to 18.9 % from 18.7 % in the prior year. Reported EBITDA increased to CHF 129.1 million from CHF 126.4 million, with the corresponding margin increasing by 20 basis points to 17.1 % from 16.9 %.

Q3 / 9M 2026 Media Release