European Chemicals: Weekend Chemical Reactions

Key reads from EU Chemicals earnings: Last week marked the peak of the reporting season, with almost all companies having now reported. Q3 results have generally been in line to better than expected, and most companies reporting last week sounded upbeat on order books and pricing - unlike earlier in the season, when a few guided to 4Q below consensus. The impact of significantly higher European energy prices also featured less prominently in commentary and guidance than feared, likely helping drive the post-results squeeze-up in Lanxess shares last week. Extremely low Rhine water levels have barely featured in earnings commentary—but we are still hoping for rain. DSM-Firmenich shares rose on the week despite an in-line print, with investors attributing the move to upbeat management commentary on 4Q trends and confidence in delivering a further ~100bps of margin expansion in FY27 versus FY26 guidance; we maintain our UW rating at ~31x 2026E consensus P/E and would look for clearer evide