Lanxess Q1 loss widens, sales down; sees sequentially higher adj. EBITDA in Q2; backs FY26 outlook

What happened: Lanxess AG (LNXSF.PK), a German specialty chemicals company, reported a wider net loss and weak adjusted EBITDA in Q1 2023, driven by lower revenues. Bouygues SA (BOUYY.PK), a French telecommunications, media, and construction company, narrowed its net loss in Q1 but saw weak sales. Thyssenkrupp AG (TYEKF, TKAMY, TKA.DE), a German conglomerate, reported a sharp decline in attributable net profit in Q2 with weak sales but climbing adjusted EBIT and orders. All companies maintained their FY26 outlooks despite the headwinds.

Market impact: The results reflect a persistently weak economic environment and ongoing geopolitical uncertainties, affecting the chemicals, telecommunications, and industrial sectors. Lanxess' weak performance dragged down the specialty chemicals sector, while Bouygues' and Thyssenkrupp's results added to the cautious sentiment in the European markets.

What to watch next: Lanxess' adjusted EBITDA is expected to rise sequentially in Q2, which could signal a turnaround. Investors should also monitor Thyssenkrupp's sales forecast cut and Bouygues' stable sales outlook for FY26. Upcoming earnings from other European companies in these sectors will provide further clarity on the broader economic trends.