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Covestro concludes fiscal year 2025 within narrowed guidance range
Despite declining revenues and a net loss, Covestro has achieved its revised targets for 2025. Strategic initiatives such as partnerships, acquisitions, and efficiency programmes highlight the company’s focus on transformation and sustainability.
Covestro, the German chemical producer, successfully concluded its 2025 financial year within the scope of its revised forecast despite facing significant market challenges. The company reported an 8.7 % decline in revenue to EUR 12.9 billion, while EBITDA dropped by 30.9 % to EUR 740 million. Key factors behind the downturn included weak global demand, overcapacity, price pressure across all regions, and the impact of a fire at its Dormagen chemical park.
Despite these obstacles, the chemical producer maintained its focus on strategic transformation and sustainability. The implementation of its STRONG transformation programme resulted in savings of EUR 275 million in 2025, with annual savings expected to rise to EUR 400 million by 2028. Additionally, the company strengthened its market position through acquisitions, including Pontacol, a leader in adhesive films for medical and mobility applications, and two production sites for HDI derivatives to expand its coatings & adhesives segment.
Strategic moves to boost resilience
The company also partnered with XRG to complete a EUR 1.17 billion capital increase, enhancing its financial flexibility. CEO Dr Markus Steilemann stated, “Our commitment to innovation, technological excellence, and a clear strategy remains unchanged as we continue to develop Covestro.”
Segment-wise, the Performance Materials division saw a 12.1 % revenue drop to EUR 6.1 billion, while Solutions & Specialties recorded a 5.5 % decline to EUR 6.6 billion. Although higher sales volumes in some areas partially offset lower selling prices and adverse currency effects, they could not fully compensate for the losses.
Focus on future growth and sustainability
Looking ahead to 2026, the chemical producer expects similar EBITDA levels to those of 2025 but anticipates improvements in free operating cash flow and profitability. The company plans to intensify its focus on circular economy principles, digitalisation, and artificial intelligence as part of its long-term strategy. However, a significant recovery in global demand remains uncertain.
Christian Baier, the chemical producer’s CFO, highlighted the company’s commitment to overcoming market challenges and continuing its transformation efforts. Covestro aims to solidify its position as a provider of sustainable material solutions, paving the way for long-term resilience and growth.
