European chemical firms expect weaker first quarter results

European chemical manufacturers are bracing for a downturn in first-quarter earnings as the conflict involving the United States, Israel, and Iran continues to disrupt global fuel and feedstock markets. The industry, which is highly energy-intensive, has seen production costs climb sharply due to the volatility in energy prices. According to the chemicals association VCI in Germany, the sector is particularly affected because it relies heavily on Brent Crude Oil and Natural Gas as primary raw materials.

The surge in energy costs has worsened conditions for European producers who entered 2026 facing weak demand and supply-chain disruptions. To protect profit margins, several major companies have implemented multiple price increases across various product lines. Among those adjusting their pricing strategies are BRENNTAG SE, WACKER CHEMIE AG, LANXESS AG, BASF SE, EVONIK INDUSTRIES AG, EMS-CHEMIE HOLDING AG-REG, and SIKA AG-REG.