Covestro Meets 2025 Guidance Amid Challenges
- Covestro's 2025 sales dropped 8.7% to EUR 12.9 billion, with EBITDA at EUR 740 million.
- A EUR 275 million savings was achieved through the STRONG program.
- Covestro completed a EUR 1.17 billion capital increase with XRG in December 2025.
- Acquisitions include Pontacol AG and Vencorex sites, enhancing film and HDI derivatives production.
Financial Performance
In 2025, Covestro's sales decreased by 8.7% to EUR 12.9 billion, primarily due to lower selling prices and exchange rate effects. EBITDA reached EUR 740 million, within the specified range of EUR 700 million to EUR 800 million. Free Operating Cash Flow was EUR –283 million, reflecting ongoing market challenges.
Strategic Initiatives
Covestro advanced its transformation strategy by completing a strategic partnership with XRG, resulting in a EUR 1.17 billion capital increase. The company also made targeted acquisitions, including Pontacol AG and Vencorex sites, to strengthen its portfolio in growth markets like medical technology and coatings.
Operational Efficiency
The STRONG program, launched in 2024, achieved EUR 275 million in savings by the end of 2025. Covestro aims for annual savings of EUR 400 million by 2028 through structural improvements and digitalization.
Environmental Impact
Greenhouse gas emissions (Scope 1 and 2) fell to 4.3 million metric tons of CO2 equivalents, aided by the Nitric Acid Unit Climate Initiative projects in Baytown and Shanghai.
Outlook for 2026
Covestro anticipates a challenging market environment in 2026, with stable EBITDA and improved Free Operating Cash Flow. The company expects greenhouse gas emissions to range between 3.9 and 4.5 million metric tons. No dividend will be distributed for 2025 due to the negative net result.
Source: Covestro