Clariant delivers continued strong results in volatile operating environment – Court dismisses Shell’s damage claim related to the 2020 competition law infringement

Clariant delivers continued strong results in volatile operating environment – Court dismisses Shell’s damage claim related to the 2020 competition law infringement AD HOC ANNOUNCEMENT PURSUANT TO ART. 53 LR

“In the second quarter of 2026, Clariant continued to deliver strong results, demonstrating resilience in a volatile operating environment. Comparable sales increased by 0.6 % in local currency with strong pricing-led growth in Care Chemicals and Adsorbents & Additives offsetting volume headwinds in Catalysts from the ongoing conflict in the Middle East. Our EBITDA margin before exceptional items improved by 80 basis points to 18.2 %, driven by Care Chemicals, which more than offset the headwinds in Catalysts. We are expanding our performance improvement programs by over CHF 20 million to run-rate savings of CHF 100 million by 2027, with 90 % of the total expected to be achieved by the end of 2026,” said Conrad Keijzer, Chief Executive Officer of Clariant.

“Our guidance for 2026 remains unchanged with sales around flat in local currency and EBITDA margin before exceptional items of around 18 %. While the Middle East conflict continues to weigh particularly on our Catalysts business, we expect a stronger second half in the business as customers particularly outside the Middle East resume operations. We continue to successfully implement our proven value-based price initiatives by leveraging our differentiated, innovative solutions for customers, securely supplied through our global production networks,” 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.

Second Quarter 2026 Group Discussion

MUTTENZ, 31 JULY 2026

Clariant, a sustainability-focused specialty chemical company, today announced second quarter 2026 sales of CHF 941.3 million, representing an increase of 0.6 % on a comparable basis versus the prior year. Including the impact of portfolio pruning, sales in local currency decreased by 0.3 %. Pricing increased by 3.0 %, driven by strong value-based pricing actions to offset inflationary raw material prices. Volume decreased by 3.3 %, impacted by the Middle East conflict and portfolio pruning measures. In Swiss francs, sales were 2.7 % lower versus Q2 2025, with the currency impact of 2.4 % mainly driven by the Indian rupee, Euro, and the US dollar.

Care Chemicals sales increased by 4.2 % in local currency versus Q2 2025 excluding the impact of portfolio pruning. Pricing was up 3.7 %, driven by strong value-based price management to offset higher raw material costs, while underlying volume growth was 0.5 %. When including the impact of portfolio pruning, sales in local currency increased by 2.5 %, as positive pricing was partly offset by a volume decline of 1.2 %. Sales grew in Personal & Home Care, Industrial Applications and Mining Solutions, as a result of both positive pricing and higher volumes. Sales in the other segments declined due to lower volumes, with the pruning measures significantly impacting Oil Services and Base Chemicals. Catalysts’ sales declined by 13.3 % in local currency, as positive pricing of 0.9 % was more than offset by a volume decline of 14.2 %. The business saw a continued impact from the ongoing volatile situation in the Middle East, which led customers to delay orders. Sales grew in Specialties, while other segments declined. Adsorbents & Additives sales increased by 5.3 % in local currency, with positive pricing (+ 3.3 %) and volume growth (+ 2.0 %), particularly in coatings and flame retardants. Sales increased in Additives, driven by both pricing and volume growth, while Adsorbents sales were flat as growth in renewable fuel applications in the United States was more than offset by softer demand in purification and industrial applications.

Group EBITDA before exceptional items of CHF 171.1 million increased by 1.5 % year on year, with a corresponding margin of 18.2 % compared to 17.4 % in the prior year. The 80-basis point increase was the result of a strong performance in Care Chemicals, where higher pricing and positive underlying volumes were further supported by a favorable valuation effect on inventory. Benefits from the performance improvement programs also supported margins, particularly in Adsorbents & Additives. These drivers more than offset the negative impact from the Middle East on Catalysts and Oil Services, as well as higher prices for raw materials (7.4 %), energy (6.0 %) and logistics (8.1 %).

Clariant also acted decisively in a challenging macroeconomic environment, which continues to be impacted by risks and uncertainties due to the conflict in the Middle East. As part of its active targeted cost management, the company identified opportunities to increase the contribution of the performance improvement programs by over CHF 20 million, upgrading the total annual run-rate to CHF 100 million from CHF 80 million as originally announced during the Investor Day in 2024. Driven by the successful implementation of key measures, Clariant expects to deliver annual run-rate savings of CHF 90 million by the end of this year, with CHF 10 million savings achieved during the second quarter. These additional cost savings will trigger one-time restructuring costs of CHF 29 million, of which CHF 24 million have been recognized in the second quarter of 2026.

Group reported EBITDA increased by 2.8 % to CHF 142.4 million, and the EBITDA margin of 15.1 % improved by 80 basis points compared to the 14.3 % reported in the second quarter of 2025. These improvements were the result of the contribution from the performance improvement programs and cost productivity, despite slightly higher restructuring compared to the prior year.

First Half Year 2026 Group Discussion

In the first half year 2026, sales of CHF 1 859.3 million were flat in local currency 1 when excluding the impact of portfolio pruning, and down 1.2 % when included. Pricing had a positive impact on the Group of 0.7 %, while volumes were down 1.9 %, impacted by the Middle East conflict and portfolio pruning. In Swiss francs, sales were 6.1 % lower versus H1 2025, with the currency impact of 4.9 % mainly driven by the US dollar, the Indian rupee and the Euro.

Care Chemicals sales increased by 2.3 % in local currency excluding the pruning impact (+ 0.1 % when included), with growth in Personal & Home Care, followed by Mining Solutions and Industrial Applications. Oil Services increased on an underlying basis when excluding the pruning impact, while sales declined in the other segments. In Catalysts, sales decreased by 8.3 % in local currency, driven by lower volumes as the Middle East conflict led to delays in customer orders, particularly in the Middle East and Asia. Sales grew in Specialties, declined slightly in Ethylene and more pronouncedly in Syngas & Fuels and Propylene. Adsorbents & Additives sales increased by 1.3 % in local currency, driven by strong growth in Additives.

Group EBITDA before exceptional items decreased by 7.7 % to CHF 331.3 million against the prior year. The corresponding margin of 17.8 % vs. 18.1 % recorded in the prior year was driven by a strong performance in Care Chemicals offsetting most of the Middle East impact in Catalysts. Raw materials (+ 1.5 %) and energy cost (+ 4.0 %) increased, while logistics costs (- 1.1 %) were lower, and all were offset by pricing. The delivery of the performance improvement programs resulted in cost savings of CHF 19 million in the first half year 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 increased by 3.1 % to CHF 300.2 million due to lower restructuring costs compared to the prior year. As a result, the EBITDA margin of 16.1 % improved by 140 basis points from the 14.7 % reported for the same period in 2025.

The total Group net result was CHF 85.0 million versus CHF 44.2 million in the previous year, largely driven by lower restructuring charges and impairments.

Cash generated from operating activities for the Group was CHF 168.7 million, compared to CHF 115.9 million in the first half of 2025. This was the result of effective net working capital management and higher profitability. The Free Cash Flow conversion (LTM, July 2025 to June 2026) increased by 15 percentage points to 52 % from 37 % reported at the end of H1 2025.

Net debt for the Group increased to CHF 1 493.1 million versus CHF 1 413.9 million recorded at the end of 2025, resulting in a net debt-to-EBITDA before exceptional items ratio (LTM) of 2.2 x at the end of the second quarter, compared to 2.0 x at the end of 2025.

Innovation and sustainability

Clariant’s bio-based Licocare™ RBW rice bran wax additives received an expansion in its approval from the U.S. Food and Drug Administration (FDA) for use in rigid PVC single- and repeated use food-contact applications. In addition to the FDA, Clariant’s Licocare RBW portfolio has been granted several food approvals under different jurisdictions including Europe and Japan, providing manufacturers globally with the regulatory framework needed to implement renewable alternatives in their food-contact applications.

Overall, Clariant’s strategic focus on innovative chemistry was reflected in a further increase in innovation sales to 19.4 % for the last twelve months (July 2025 to June 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 (July 2025 to June 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 1.1 % to 3.69 million metric tons in the last twelve months, compared to 3.73 million metric tons in the full year 2025.

Ethylene claims update – Clariant dismissed

On 29 July 2026, the Amsterdam District Court dismissed Clariant from the damage claim brought by Shell in its entirety against the company and three other defendants. The Court's ruling confirms Clariant's position that Shell suffered no harm attributable to Clariant's conduct. The judges particularly found no proof that the information exchange among buyers caused market harm or altered pricing metrics like the Monthly Contract Price (MCP). Clariant has consistently maintained that the relevant conduct produced no effect on the market. Clariant will continue to defend itself vigorously in the remaining proceedings in the Netherlands and Germany.

The Amsterdam District Court has also dismissed a claim seeking declaratory judgment of liability of the defendants for the same conduct brought by a claim vehicle »Stichting Ethylene Claims«.

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 logistic 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 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 well over 40 % 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 second quarter of 2026, sales in the Business Unit Care Chemicals increased by 4.2 % in local currency when excluding the impact from portfolio pruning, and by 2.5 % when included. Pricing was up 3.7 % as a result of the successful implementation of value-based pricing to offset inflationary input costs due to the conflict in the Middle East. Volumes declined by 1.2 %, including the impact of the portfolio pruning measures. When excluded, volumes grew by 0.5 %. Sales in Swiss francs increased by 1.4 % versus Q2 2025.

Growth was driven by Industrial Applications, Personal & Home Care and Mining Solutions, with positive pricing and higher volumes, and supported by some pre-buying. Sales in Oil Services declined (underlying growth) due to portfolio pruning and the impact of the Middle East conflict. Sales in Base Chemicals declined as the increased pricing was more than offset by lower volumes impacted by portfolio pruning, while sales in Crop Solutions declined due to lower volumes against a high comparison base driven by restocking in the prior year.

Care Chemicals sales in the Europe, Middle East & Africa region increased at a mid-single-digit percentage rate, driven by strong growth in Germany. In the Americas, sales declined by a low single-digit percentage rate, as strong growth in the United States was more than offset by weakness in Latin America. Sales in Asia-Pacific increased at a high single-digit percentage rate, driven by growth in Australia and Japan, while China was flat.

In the first half of 2026, sales in the Business Unit Care Chemicals increased by 2.3 % in local currency excluding the impact from portfolio pruning. When included, sales grew 0.1 %, as slightly positive pricing offset slightly lower volumes. Personal & Home Care showed the strongest growth, followed by Mining Solutions and Industrial Applications. In Swiss francs, sales decreased by 4.2 %.

EBITDA Margin

In the second quarter, EBITDA before exceptional items increased by 19.1 % to CHF 104.2 million, representing a margin of 20.7 % compared to 17.6 % in the prior year. The 310 basis-point improvement versus the prior year was the result of active price management and underlying volume growth, further supported by a favorable valuation effect on inventory and contributions from the performance improvement programs.

The reported EBITDA of CHF 96.7 million increased by 44.1 % compared to the prior year. The corresponding reported EBITDA margin of 19.2 % increased by 570 basis points versus 13.5 % in the prior year. This improvement was largely driven by lower restructuring charges.

EBITDA margin before exceptional items for the first half of 2026 increased to 20.8 % from 19.8 % in the prior year. Reported EBITDA increased to CHF 210.4 million from CHF 183.9 million, with the corresponding margin improving by 320 basis points to 20.0 % from 16.8 %.

Business Unit Catalysts

(1) Excluding hyperinflation accounting country Türkiye

Sales

In the second quarter of 2026, sales in the Business Unit Catalysts declined by 13.3 % in local currency and by 19.1 % in Swiss francs. While pricing was up by 0.9 %, volumes declined by 14.2 % versus Q2 2025 due to an ongoing significant impact from the Middle East conflict to regional and global supply chains.

Sales in Specialties increased at a high teens percentage rate, while sales in Ethylene decreased at a low teens percentage rate, and sales in both Syngas & Fuels and Propylene decreased at a high twenties percentage rate.

Catalysts’ sales in the Europe, Middle East & Africa region decreased at a high teens percentage rate, as the significant impact from the Middle East conflict more than offset growth in Europe. In the Americas region, sales decreased at a mid-double-digit percentage rate due to the project nature of the business, which saw strong orders in the prior year rolling off and customers shifting their planned maintenance forward to benefit from current Middle East weakness. In Asia-Pacific, the largest geographic market, sales increased at a mid-single-digit percentage rate as a decline in China was more than offset by sales growth elsewhere in the region.

In the first half of 2026, sales in the Business Unit Catalysts decreased by 8.3 % in local currency and by 16.1 % in Swiss francs. Sales grew in Specialties, were around flat in Ethylene and declined at double digit levels in both Syngas & Fuels and Propylene.

EBITDA Margin

In the second quarter, EBITDA before exceptional items decreased by 32.5 % to CHF32.8 million, representing a margin of 18.6 % versus a strong comparable of 22.3 % in the prior year which included positive one-offs. This was driven by a continued significant impact from the conflict in the Middle East, with high-margin orders being delayed and lower operating leverage. A less favorable mix and higher raw material costs also weighed on profitability.

Reported EBITDA of CHF 27.9 million decreased by 41.6 % compared to the prior year, with a corresponding margin of 15.8 % versus 21.9 %.

EBITDA margin before exceptional items for the first half of 2026 decreased to 14.3 % from 19.7 % in the prior year. Reported EBITDA decreased by 44.3 % to CHF 39.9 million from CHF 71.6 million, with the corresponding margin decreasing by 630 basis points to 12.5 % from 18.8 %.

Business Unit Adsorbents & Additives

(1) Excluding hyperinflation accounting country Türkiye

Sales

In the second quarter of 2026, sales in the Business Unit Adsorbents & Additives increased by 5.3 % in local currency and by 3.4 % in Swiss francs. Sales were flat in the Adsorbents segments, while Additives sales increased at double-digit percentage rate. For the business unit, pricing was up by 3.3 %, while volumes increased by 2.0 %, partially supported by some pre-buying.

In Europe, Middle East & Africa, the largest region, sales increased at a mid-single-digit percentage rate, driven by growth in Germany. In the Americas, sales were flat as growth in the United States was offset elsewhere in the region. Asia-Pacific sales were up at a double-digit percentage rate, driven by growth in China.

In the first half of 2026, sales in the Business Unit Adsorbents & Additives increased by 1.3 % in local currency and decreased by 2.9 % in Swiss francs, as growth in Additives more than offset lower sales in Adsorbents.

EBITDA Margin

In the second quarter, EBITDA before exceptional items increased by 1.4 % to CHF 51.2 million, representing a margin of 19.6 %, which was slightly below the 20.0 % margin in the prior year, as mix effects were not entirely offset by active margin management and contribution from performance improvement programs.

Reported EBITDA of CHF 44.7 million decreased by 4.9 % compared to the prior year, while the corresponding margin of 17.1 % represents a 150-basis-point decline from 18.6 % in the second quarter of 2025 as a result of additional restructuring charges related to the step-up in the performance improvement programs.

EBITDA margin before exceptional items for the first half of 2026 of 19.1 % was stable compared to 19.3 % in the prior year. Reported EBITDA increased to CHF 87.3 million from CHF 83.7 million, with the corresponding margin increasing by 120 basis points to 17.8 % from 16.6 %.

Key Financial Group Figures

(1) Excluding hyperinflation accounting country Türkiye

Q2 / H1 2026 Media Release

H1 2026 Financial Review