The economic conditions and geopolitical tensions meant that fiscal year 2025 was again challenging for Covestro. Sales decreased by 8.7% to €12,942 million (previous year: 14,179 million), predominantly due to the lower selling price level. The decline in the selling price level was only partially offset by lower raw material prices. Conversely, changes in volumes sold had the effect of raising earnings, since the reduction in business with negative margins ultimately had a positive volume effect on EBITDA despite an overall decline in sales volumes. Overall, the adverse factors carried more weight, leading to a decrease of 30.9% in EBITDA to €740 million (previous year: €1,071 million). Free operating cash flow went down to €–283 million (previous year: €89 million). The year-on-year drop was mainly due to lower cash flows from operating activities. In addition, ROCE above WACC was –10.2% points (previous year: –7.4% points). The decline compared with the previous year was driven by a significant drop in net operating profit after taxes (NOPAT). GHG emissions amounted to 4.3 million metric tons of CO2 equivalents (previous year: 4.9 million metric tons of CO2 equivalents); the decline from the prior-year value was mainly due to the successful implementation of the NAUCI (Nitric Acid Unit Climate Initiative) projects at our Baytown (United States) and Shanghai (China) sites as well as a reduction in capacity utilization at the Dormagen (Germany) site for reasons including the force majeure declaration, and the closure of our joint-venture site in Maasvlakte (Netherlands).
In the Annual Report 2024, the Covestro Group published a forecast for key management indicators in fiscal 2025. This guidance for EBITDA and ROCE above WACC was narrowed on May 6, 2025. On July 31, 2025, the guidance for EBITDA, ROCE above WACC, and free operating cash flow was adjusted. The guidance for all key management indicators was narrowed most recently on October 30, 2025.
The Covestro Group most recently anticipated full-year EBITDA between €700 million and €800 million after originally projecting EBITDA between €1,000 million and €1,600 million. After initially expecting FOCF of between €0 million and €300 million, the Covestro Group most recently forecast a figure between €–400 million and €–200 million. For ROCE above WACC, the original expectation had been a figure between –6% points and –2% points; this was most recently narrowed to between –9% points and –8% points. For GHG emissions, the Covestro Group originally anticipated a figure between 4.2 million metric tons of CO2 equivalents and 4.8 million metric tons of CO2 equivalents and most recently a figure between 4.2 million metric tons of CO2 equivalents and 4.4 million metric tons of CO2 equivalents.
The actual figures recorded by Covestro for EBITDA, FOCF, and ROCE above WACC were below the forecast originally published in the Annual Report 2024. This was mainly due to the persistently weak macroeconomic situation without any signs of recovery. GHG emissions were within the range of the original forecast.
Compared to the guidance issued on October 30, 2025, EBITDA, FOCF, and GHG emissions were within the ranges communicated. ROCE above WACC was below the indicated range.
| Forecast-actuals-comparison for fiscal year 2025 | ||||
|---|---|---|---|---|
| 2024 | Forecast 2025 (Annual Report 2024) |
Forecast 2025 (October 30, 2025) |
2025 | |
| EBITDA1 | €1,071 million | Between €1,000 million and €1,600 million |
Between €700 million and €800 million |
€740 million |
| Free operating cash flow2 | €89 million | Between €0 million and €300 million |
Between €–400 million and €–200 million |
(€283 million) |
| ROCE above WACC3, 4 | –7% points | Between –6% points and –2% points |
Between –9% points and –8% points |
–10% points |
| Greenhouse gas emissions5 (CO2 equivalents) | 4.9 million metric tons | Between 4.2 million metric tons and 4.8 million metric tons |
Between 4.2 million metric tons and 4.4 million metric tons |
4.3 million metric tons |
1 Earnings before interest, taxes, depreciation and amortization (EBITDA): EBIT plus depreciation, amortization, and impairment losses; less impairment loss reversals on property, plant and equipment and intangible assets.
2 Free operating cash flow (FOCF): cash flows from operating activities less cash outflows for additions to property, plant, equipment and intangible assets.
3 Return on capital employed (ROCE): ratio of EBIT after imputed income taxes to capital employed. Imputed income taxes are calculated by multiplying an imputed tax rate of 25% by EBIT.
4 Weighted average cost of capital (WACC): weighted average cost of capital reflecting the expected return on the company’s equity and debt capital. A figure of 7.3% has been taken into account for the year 2025 (2024: 8.1%).
5 Greenhouse gas (GHG) emissions (Scope 1 and Scope 2, GHG Protocol) of all Covestro’s environmentally relevant sites.