Covestro (1COV) investor relations material

Executive summary

• Group sales declined by 1.9% year-over-year to €6,729 million, mainly due to negative currency effects and lower volumes, partially offset by higher selling prices.

• EBITDA surged 64.4% to €669 million, driven by improved margins from higher selling prices and lower raw material costs, despite increased energy costs.

• Net income reached €120 million, reversing a net loss of €219 million in the prior year; earnings per share improved to €0.58 from €-1.16.

• Free operating cash flow improved significantly to €-87 million from €-481 million, reflecting higher EBITDA and better working capital management.

Financial highlights

• Gross profit increased to €1,246 million from €1,017 million year-over-year.

• EBIT rose to €244 million from €-48 million, with income before taxes at €206 million versus €-130 million.

• Cash flows from operating activities turned positive at €310 million, up from a negative €116 million.

• Net financial debt increased by €127 million to €1,923 million as of June 30, 2026.

• Equity rose by €326 million to €7,342 million, mainly due to net income and positive FX effects.

Outlook and guidance

• EBITDA for 2026 is now forecast significantly above the prior year, with both main segments expected to outperform previous guidance.

• Free operating cash flow and ROCE above WACC are projected to improve substantially.

• Greenhouse gas emissions are expected between 3.9 and 4.5 million metric tons CO2 equivalents.

• Global economic growth for 2026 is forecast at 2.5%, with APAC outpacing other regions at 4.2%.