Performance Materials
| Performance Materials key data | ||||||
|---|---|---|---|---|---|---|
| 2nd quarter 2024 | 2nd quarter 2025 | Change | 1st half 2024 | 1st half 2025 | Change | |
| Sales (external) | €1,834 million | €1,618 million | –11.8% | €3,523 million | €3,295 million | –6.5% |
| Intersegment sales | €571 million | €528 million | –7.5% | €1,127 million | €1,066 million | –5.4% |
| Sales (total) | €2,405 million | €2,146 million | –10.8% | €4,650 million | €4,361 million | –6.2% |
| Change in sales (external) | ||||||
| Volume | 15.0% | –2.2% | 16.2% | –2.1% | ||
| Price | –12.0% | –6.6% | –16.7% | –3.1% | ||
| Currency | –0.5% | –3.0% | –1.1% | –1.3% | ||
| Sales by region (external) | ||||||
| EMLA | €822 million | €673 million | –18.1% | €1,584 million | €1,475 million | –6.9% |
| NA | €451 million | €464 million | 2.9% | €868 million | €894 million | 3.0% |
| APAC | €561 million | €481 million | –14.3% | €1,071 million | €926 million | –13.5% |
| EBITDA1 | €196 million | €149 million | –24.0% | €299 million | €162 million | –45.8% |
| EBIT1 | €59 million | €1 million | –98.3% | €24 million | (€143 million) | . |
| Cash flows from operating activities | €19 million | (€49 million) | . | €20 million | (€62 million) | . |
| Cash outflows for additions to property, plant, equipment and intangible assets | €108 million | €123 million | 13.9% | €182 million | €234 million | 28.6% |
| Free operating cash flow | (€89 million) | (€172 million) | 93.3% | (€162 million) | (€296 million) | 82.7% |
1 EBITDA and EBIT include the effect on earnings of intersegment sales.
Second Quarter of 2025
Compared to the prior-year quarter, sales in the Performance Materials segment went down by 11.8% to €1,618 million (previous year: €1,834 million). This was mostly driven by a drop in average selling prices due to macroeconomic developments following the increase in US import tariffs; this had a decreasing effect on sales of 6.6%. Exchange rate movements also had a reducing effect on sales of 3.0%. Furthermore, lower volumes sold had a negative impact on sales of 2.2%.
In the EMLA region, sales were down 18.1% to €673 million (previous year: €822 million), driven by a drop in volumes sold and a lower selling price level, each of which had a considerable negative effect on sales. Exchange rate changes had a neutral effect on sales overall. In the NA region, sales increased by 2.9% to €464 million (previous year: €451 million). The main driver was a significant rise in volumes sold, as domestic production facilities in the United States were able to offset decreases in imports caused by the increase in US import tariffs. Conversely, exchange rate movements had a considerable negative impact on sales. Average selling prices had no notable effect on sales. Sales in the APAC region were down 14.3% to €481 million (previous year: €561 million), mainly because of a decline in the selling price level, which had a significant sales-reducing effect. Exchange rate movements contributed to a slight downward trend in sales, while changes in volumes sold had no notable effects on sales.
In the second quarter of 2025, the Performance Materials segment’s EBITDA was down 24.0% on the prior-year quarter, dropping to €149 million (previous year: €196 million). This was mainly driven by reduced margins, as lower raw material prices offset the decline in selling prices caused by macroeconomic developments only to some extent. In addition, there was a year-over-year increase in expenses to implement the transformation program STRONG, and this had an adverse impact on EBITDA of €14 million. Exchange rate movements were an additional negative factor weighing on earnings. In contrast, lower provisions for short-term variable compensation and a gain on the sale of intangible assets of €20 million had a favorable effect on EBITDA. A change in volumes sold also had the effect of boosting earnings. While sales volumes were down overall, the reduction of business with negative margins had a beneficial volume effect on EBITDA.
EBIT amounted to €1 million (previous year: €59 million).
Free operating cash flow stood at €–172 million (previous year: €–89 million). The change was primarily due to the decrease in EBITDA and a higher amount of cash tied up in working capital, which was attributable in particular to a drop in trade accounts payable.
First Half of 2025
Sales in the Performance Materials segment decreased by 6.5% to €3,295 million in the first half of 2025 (previous year: €3,523 million). This was mostly driven by a drop in average selling prices due to economic factors; this had a decreasing effect on sales of 3.1%. A decrease in volumes sold also had a negative impact on sales of 2.1%. At the same time, exchange rate movements had a decreasing effect on sales of 1.3%,
EBITDA was down 45.8% to €162 million in the first half of 2025 (previous year: €299 million). This is to a large extent attributable to higher expenses incurred to implement the transformation program STRONG, and this had an adverse impact on EBITDA of €101 million. They were mostly attributable to the planned closure of the production facility at the Maasvlakte (Netherlands) site. In addition, reduced margins weighed on earnings, as lower raw material prices offset the decline in selling prices caused by macroeconomic developments only to some extent. At the same time, exchange rate movements were another negative factor affecting earnings. This stood against lower provisions for short-term variable compensation and a gain on the sale of intangible assets of €20 million, both of which had a favorable effect on EBITDA. In addition, changes in volumes sold had the effect of raising earnings, since the reduction in business with negative margins ultimately had a positive volume effect on EBITDA despite an overall decline in sales volumes.
EBIT amounted to €–143 million (previous year: €24 million).
The free operating cash flow stood at €–296 million (previous year: €–162 million), primarily as a result of the fall in EBITDA.