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1. Company Snapshot

1.a. Company Description

Clariant AG operates as a specialty chemical company worldwide.It operates through three segments: Care Chemicals, Catalysis, Natural Resources.The company offers flame retardants, performance additives, and advanced surface solutions for use in plastics, coatings, inks, and consumer applications; and catalysts for the petrochemical and fuel refining, synthesis gas, chemical, emissions control, specialty zeolites and zeolite-based, and custom catalyst markets.


It also provides bentonite-based specialty products for the oil purification, foundry additive, feed additives, civil engineering, wastewater treatment, clay specialties, paper and detergent additive, PVC stabilizer, BTX-catalyst, and kerosene and jet fuel purification industries.In addition, the company offers industrial and consumer specialty chemicals and application solutions for the automotive brake fluid and coolant, aircraft anti-itching and deicing fluid, construction chemical, agrochemical and agricultural adjuvants, food ingredients, gas treatment, heat transfer fluid, home care, industrial cleaning, industrial lubricant additive, special solvent, paint and coating, healthcare, and personal care ingredient markets.Further, it offers oilfield production chemicals for enhanced oil recovery, offshore and deep water, conventional and unconventional oil and gas, heavy oil, paraffin control technologies, and well services additives, as well as Veritrax, an intelligent chemical management system; chemical solutions for the end-to-end mining process; refinery services' additives; biofuels and derivatives, such as sunliquid, an agricultural residue converted to cellulosic ethanol; and organic, inorganic, and anti-corrosive pigments, as well as pigment preparations, dyes, and specialty material for use in coatings, plastics, printing and digital printing, home, fabric, personal care, and other applications.


Clariant AG was founded in 1886 and is headquartered in Muttenz, Switzerland.

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1.b. Last Insights on CLN

Clariant AG faces challenges due to weak financial prospects. The company's Q3 2025 sales decreased by 3% in local currencies to CHF 906 million, with lower sales in Care Chemicals and Catalysts. Although EBITDA margin before exceptional items increased to 17.9%, driven by performance improvement programs and price and cost management, the market may view this as insufficient to offset declining sales. The Board of Directors' decision to reduce its size and enhance corporate governance may address investor concerns but may not immediately impact financials.

1.c. Company Highlights

2. Clariant's Q3 2025 Earnings: A Strong Recovery in Sight?

Clariant reported sales of CHF 906 million for Q3 2025, representing a 3% decrease in local currencies and 9% in Swiss francs. Despite the decline in sales, EBITDA before exceptional items showed a significant increase of 5% to CHF 162 million, with a margin improvement of 230 basis points to 17.9%. Earnings per share (EPS) came in at 0.07877, falling short of analyst estimates of 0.45. The company's savings program has delivered CHF 31 million in the first 9 months of 2025, and it remains on track to achieve its target of CHF 80 million by 2027.

Publication Date: Nov -03

📋 Highlights
  • EBITDA Before Exceptional Items Increase: EBITDA rose 5% to CHF 162 million with a 230 bps margin improvement to 17.9%.
  • Savings Program Progress: CHF 31 million saved in Q3 2025; target of CHF 80 million by 2027.
  • Care Chemicals Performance: EBITDA before exceptional items reached CHF 92 million with a 18.9% margin.
  • Catalysts Margin Growth: Despite 8% local currency sales decline, EBITDA margin improved to 19.3%.
  • CapEx Reduction: Guidance at CHF 180 million, structurally lower due to completed major investments.

Segment Performance

The Care Chemicals segment drove the company's growth, with EBITDA before exceptional items reaching CHF 92 million and a margin of 18.9%. This was attributed to strong operational performance and positive mix effects. In contrast, the Catalysts segment saw an 8% decline in sales, but EBITDA before exceptional items margin improved to 19.3%. Adsorbents and Additives reported a 1% increase in sales and a 5% rise in EBITDA before exceptional items to CHF 42 million.

Guidance and Outlook

Clariant expects local currency sales growth to be at the lower end of the 1-3% range for 2025, with an EBITDA margin before exceptional items of 17-18%. To achieve this, the company needs a 5% organic growth in Q4, driven primarily by a recovery in Care Chemicals. The guidance range for Q4 EBITDA margin remains wide at 17-18% due to various factors, including production slowdowns and corporate cost phasing.

Valuation and Metrics

With a P/E Ratio of 20.89 and an EV/EBITDA of 7.21, Clariant's valuation appears to be reasonable. The company's ROE and ROIC stand at 5.32% and 5.62%, respectively. The dividend yield is attractive at 5.85%. Analysts estimate revenue growth at 2.5% for next year, which may be a reasonable assumption given the current market conditions.

Operational Highlights

Clariant's CEO, Conrad Keijzer, emphasized the company's focus on innovation and disciplined capital allocation. The company is repositioning itself towards specialty chemicals and has divested non-core businesses. Clariant is also addressing increased competition from Chinese players by leveraging local manufacturing and IP protection.

Industry Trends

The European chemical industry is facing structural changes due to the loss of cheap Russian gas, resulting in production levels 20% below pre-corona levels. However, Clariant's global footprint helps mitigate this impact. The company's management remains optimistic about the future, citing a potential recovery in the biodiesel and SAF markets.

3. NewsRoom

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Clariant announces leadership transition in its Business Unit Care Chemicals

Dec -01

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AI and Activism: Vinson & Elkins Partner Sebastian Tiller, Live at Nasdaq

Nov -18

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Weak Financial Prospects Seem To Be Dragging Down Clariant AG (VTX:CLN) Stock

Nov -11

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Clariant increases Q3 2025 EBITDA margin before exceptional items by 230 basis points to 17.9 % in continued challenging market environment

Oct -30

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Clariant Board of Directors decided to reduce its size and enhance corporate governance

Oct -24

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Energy & Utilities Roundup: Market Talk

Oct -03

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Clariant Rejects Claim From BP, ExxonMobil That It Infringed EU Competition Law on Ethylene Market

Oct -03

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Clariant Rejects Claim From BP, ExxonMobil That It Infringed EU Competition Law on Ethylene Market

Oct -03

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.73%)

6. Segments

Care Chemicals

Expected Growth: 3.5%

Clariant's Care Chemicals segment growth of 3.5% is driven by increasing demand for personal care products, particularly in Asia, and the rising trend of sustainable and eco-friendly ingredients. Additionally, the segment benefits from its strong market position, innovative product offerings, and strategic partnerships with key customers.

Adsorbents & Additives

Expected Growth: 3.8%

Clariant AG's Adsorbents & Additives segment growth of 3.8% is driven by increasing demand for sustainable and eco-friendly products, growth in the automotive and industrial industries, and rising adoption of emission control technologies. Additionally, the company's strategic investments in R&D and expansion into emerging markets have contributed to the segment's growth.

Catalysts

Expected Growth: 4.2%

Clariant AG's 4.2% growth is driven by increasing demand for sustainable solutions, expansion in emerging markets, and strategic partnerships. The company's focus on innovation, particularly in the areas of renewable energy and emission reduction, has led to new business opportunities. Additionally, cost savings initiatives and operational efficiencies have contributed to the growth.

7. Detailed Products

Additives

Specialty chemicals used to enhance the performance of plastics, coatings, and other materials

Catalysts

Substances that speed up chemical reactions, used in the production of fuels, chemicals, and other products

Masterbatches

Concentrated mixtures of pigments and additives used to color and enhance the properties of plastics

Oil and Mining Services

Specialty chemicals and services used in the extraction and production of oil and gas

Pigments

Colored substances used to impart color and other properties to materials

Functional Minerals

Specialty minerals used in a variety of applications, including coatings, plastics, and construction materials

Biofuels

Sustainable fuels produced from renewable biomass sources

Aroma Chemicals

Specialty chemicals used in the production of fragrances and flavors

8. Clariant AG's Porter Forces

Forces Ranking

Threat Of Substitutes

Clariant AG operates in a niche market with few substitutes, but the threat of substitutes is still present due to the increasing demand for sustainable and eco-friendly products.

Bargaining Power Of Customers

Clariant AG has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are often customized, making it difficult for customers to switch suppliers.

Bargaining Power Of Suppliers

Clariant AG relies on a few key suppliers for raw materials, which gives them some bargaining power. However, the company's large scale of operations and diversified supply chain mitigate this risk.

Threat Of New Entrants

The specialty chemicals industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This makes it difficult for new entrants to compete with established players like Clariant AG.

Intensity Of Rivalry

The specialty chemicals industry is highly competitive, with many established players competing for market share. Clariant AG faces intense competition from companies like BASF, Evonik, and Lanxess.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 37.54%
Debt Cost 4.20%
Equity Weight 62.46%
Equity Cost 7.87%
WACC 6.49%
Leverage 60.11%

11. Quality Control: Clariant AG passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Evonik

A-Score: 5.4/10

Value: 7.7

Growth: 2.8

Quality: 3.9

Yield: 9.4

Momentum: 1.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Fuchs Petrolub

A-Score: 5.4/10

Value: 5.1

Growth: 5.6

Quality: 7.2

Yield: 5.0

Momentum: 3.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Brenntag

A-Score: 5.4/10

Value: 7.1

Growth: 5.6

Quality: 5.1

Yield: 5.6

Momentum: 1.5

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Arkema

A-Score: 4.7/10

Value: 7.3

Growth: 3.4

Quality: 3.2

Yield: 7.5

Momentum: 0.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Clariant

A-Score: 4.3/10

Value: 6.3

Growth: 3.7

Quality: 3.1

Yield: 6.9

Momentum: 0.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
IMCD

A-Score: 4.2/10

Value: 4.2

Growth: 6.6

Quality: 5.0

Yield: 3.1

Momentum: 0.5

Volatility: 6.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

7.34$

Current Price

7.34$

Potential

-0.00%

Expected Cash-Flows