Covestro (1COV) Q4 2025 (Media) earnings summary

Executive summary

• Navigated a challenging economic environment in 2025, focusing on transformation, efficiency, and strategic portfolio expansion, while closing the year within narrowed guidance despite persistent market and geopolitical challenges.

• Executed the "Sustainable Future" strategy, modernizing production sites and increasing renewable electricity share to 20%.

• Strategic partnership with XRG commenced and completed, including a €1.17 billion capital increase to strengthen the balance sheet.

• Completed acquisitions of Pontacol and agreements to acquire Vencorex to strengthen the Solutions & Specialties business.

• Net result was negative at €-644 million, reflecting ongoing adverse market conditions.

Financial highlights

• Sales reached €12.9bn for FY 2025, down 8.7% year-over-year, with EBITDA at €740m, down 30.9%.

• Free operating cash flow declined to -€283m from €89m in the prior year.

• STRONG program delivered €275m in savings by end of 2025.

• Greenhouse gas emissions (Scope 1+2) reduced to 4.3 million metric tons from 4.7 million.

• Q4 2025 sales were €2.92bn, down 13.7% year-over-year; Q4 EBITDA was €91m, down 52.4%.

Outlook and guidance

• EBITDA expected to remain stable year-on-year, with possible single-digit percentage deviation.

• Free operating cash flow and ROCE anticipated to be significantly above prior-year levels and above WACC.

• Greenhouse gas emissions forecasted between 3.9m and 4.5m tons (Scope 1-2).

• No dividend to be distributed for 2025 due to negative net result.