Covestro (1COV) Q4 2025 earnings summary

Executive summary

• FY 2025 marked by adverse economic conditions, with sales declining to €12.9bn, mainly due to lower prices and unfavorable FX impacts.

• EBITDA fell 30.9% year-over-year to €740m, within guidance, as margin pressure persisted.

• Net income was negative at -€644m, reflecting significantly lower EBIT and impairment losses.

• Strategic partnership with XRG successfully commenced, and two bolt-on acquisitions strengthened the Solutions & Specialties segment.

Financial highlights

• Sales dropped 8.7% year-over-year, primarily due to a 5.2% price decline and 2.6% FX impact.

• EBITDA decreased to €740m from €1,071m, mainly due to negative pricing delta and restructuring costs.

• Free operating cash flow (FOCF) was negative at -€283m, driven by lower EBITDA.

• Earnings per share declined to -€3.39 from -€1.41 year-over-year.

Outlook and guidance

• FY 2026 EBITDA expected around 2025 level; FOCF and ROCE anticipated to improve significantly.

• GHG emissions (scope 1 and 2) guided between 3.9 and 4.5m tons for 2026.

• Mark-to-market EBITDA for FY 2026 projected at approximately €0.8bn.