In the 2025 fiscal year, Covestro achieved its EBITDA target despite a persistently challenging market environment, including volatile geopolitical dynamics, sustained weak global demand coupled with intense competitive pressure, and the impact of the fire at the Dormagen Chempark in Germany.

Besides these, the further decline in price levels across all regions and overcapacities in key product groups had a significant effect on margins and earnings.

Group sales decreased by 8.7% to EUR 12.9 billion in the 2025 fiscal year. This development was primarily driven by lower selling prices in all regions as well as exchange rate effects.

At EUR 740 million, EBITDA was within the range of EUR 700 million to EUR 800 million specified in October 2025. The production downtime at several plants following a fire at the Dormagen Chempark had a negative impact on the full year in the low three-digit million euro range.

The Group net result was EUR –644 million (previous year: EUR –266 million), reflecting the ongoing challenging market conditions.

Greenhouse gas emissions (Scope 1 and Scope 2) fell to 4.3 million metric tons of CO2 equivalents. This was primarily due to the successful implementation of the Nitric Acid Unit Climate Initiative projects at the Baytown (US) and Shanghai (China) sites.

Targeted investments and efficiency increases

In 2025, Covestro made targeted investments in growth and enhanced its organizational efficiency. Despite the continuing challenging environment, Covestro made strategic acquisitions to further strengthen its portfolio in attractive growth markets.

With the acquisition of Pontacol AG, completed in August 2025, Covestro is expanding its film business to include highly specialized multilayer adhesive films, which open up new opportunities in areas such as medical technology, mobility, and the textile industry.

Furthermore, in August 2025, Covestro signed an agreement with Vencorex to acquire two production sites for HDI derivatives in Rayong (Thailand) and Freeport (US). This transaction, which is expected to close in the first half of 2026 if possible, strengthens the production network for aliphatic isocyanates and supports the growth strategy in the Coatings & Adhesives business entity.

At the same time, Covestro is making continuous progress with its STRONG transformation program launched in 2024. As of the end of 2025, the company has already saved approximately EUR 275 million, consistently implementing the announced efficiency increases.

The goal is to achieve annual savings of EUR 400 million worldwide by the end of 2028. The focus is on the consistent continuation of the transformation, structural and process improvements, as well as extensive digitalization and the use of artificial intelligence across all areas of the company.

Outlook for 2026

For the 2026 fiscal year, Covestro continues to expect a demanding market environment. A sustainable recovery in global demand is currently not in sight, while the global competitive environment remains characterized by overcapacities, persistent price pressure, and an increasingly protectionist trade policy.

For 2026, Covestro expects EBITDA to be in the region of the previous year’s level. For Free Operating Cash Flow and ROCE above WACC, the company anticipates a significant improvement compared to 2025 levels. For greenhouse gas emissions (Scope 1+2) measured in CO2 equivalents, the Group expects a value between 3.9 and 4.5 million metric tons.