Germany · Delayed Price · Currency is EUR Covestro AG Earnings Call Transcripts
Fiscal Year 2025
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2025 saw a 9% sales decline and lower EBITDA amid tough market conditions, but transformation programs and strategic partnerships helped offset some pressures. Outlook for 2026 is stable EBITDA, improved cash flow, and continued sustainability focus.
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Q3 2025 saw sales drop 12% to EUR 3.2 billion and EBITDA fall 15.7% to EUR 242 million, impacted by the Dormagen fire and weak market conditions. FY2025 EBITDA guidance was narrowed to EUR 700–800 million, with continued cost-saving efforts and gradual recovery expected.
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Q2 2025 saw stable volumes but lower sales and EBITDA due to pricing and FX headwinds, with guidance for the year revised down amid ongoing margin pressure and a significant incident at Dormagen. The XRG transaction and Pontacol acquisition mark key strategic moves.
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Q1 2025 saw stable sales and volumes, but EBITDA dropped 50% due to one-time transformation costs. Guidance for 2025 EBITDA was narrowed amid persistent low margins and global trade uncertainties, while the XRG transaction advanced with most regulatory approvals secured.
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The AGM reviewed a challenging year with stable EBITDA but negative net income, resulting in no dividend. Strategic focus included a major partnership with XRG, a planned capital increase, and ongoing transformation for efficiency and sustainability. All agenda items were approved by the required majority.
Fiscal Year 2024
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2024 sales declined 1.4% to EUR 14.2 billion as higher volumes were offset by lower prices and FX, with EBITDA stable at EUR 1.1 billion. The XRG takeover succeeded, and 2025 guidance anticipates improved sales and EBITDA, with continued cost savings and strategic investments.
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Q3 2024 delivered 6.1% volume growth and EUR 3.6 billion in sales, with EBITDA at EUR 287 million amid continued margin pressure. Guidance for FY 2024 is narrowed, with no margin rebound expected, and significant sustainability projects are underway.
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A strategic investment agreement was signed with ADNOC, featuring a €62 per share takeover offer and a 10% capital increase to support growth. Governance, employee protections, and operational independence are maintained, with closing expected in H2 2025 pending regulatory approvals.
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Q2 2024 saw strong 9.3% volume growth but stable sales at EUR 3.7 billion due to lower prices, with EBITDA down 17% year-over-year to EUR 320 million. Full-year EBITDA guidance was narrowed, and the STRONG transformation program was launched to drive future savings.