| Covestro AG statement of financial position according to the German Commercial Code | ||
|---|---|---|
| Dec. 31,2024 | Dec. 31,2025 | |
| € million | € million | |
| ASSETS | ||
| Noncurrent assets | 1,830 | 1,830 |
| Property, plant and equipment | – | – |
| Financial assets | 1,830 | 1,830 |
| Current assets | 4,668 | 5,447 |
| Trade accounts receivable | 1 | 25 |
| Receivables from affiliated companies | 4,591 | 5,365 |
| Other assets | 76 | 57 |
| Deferred charges | 8 | 6 |
| Excess of plan assets over pension liability | 2 | 2 |
| Total assets | 6,508 | 7,285 |
| EQUITY AND LIABILITIES | ||
| Equity | 3,884 | 4,924 |
| Capital stock | 189 | 208 |
| Own shares | – | – |
| Issued capital | 189 | 208 |
| Capital reserve | 3,757 | 4,910 |
| Other retained earnings | 117 | 122 |
| Net accumulated losses | (179) | (316) |
| Provisions | 145 | 81 |
| Provisions for pensions | 24 | 26 |
| Provisions for taxes | 50 | 32 |
| Other provisions | 71 | 23 |
| Liabilities | 2,479 | 2,280 |
| Bonds | 1,500 | 1,500 |
| Liabilities to banks | 821 | 555 |
| Trade accounts payable | 23 | 58 |
| Payables to affiliated companies | 81 | 154 |
| Other liabilities | 54 | 13 |
| Total equity and liabilities | 6,508 | 7,285 |
Covestro AG had total assets of €7,285 million as of December 31, 2025 (previous year: €6,508 million). The rise in total assets is mainly due to the liquidity from the capital increase, which was transferred to Covestro Deutschland AG in an intragroup transaction and subsequently reported as higher cash pool receivables. The net assets and financial position of Covestro AG were dominated by its role as a holding company in managing subsidiaries and financing corporate activities. This was primarily reflected in the levels of financial assets (25.1% of total assets), receivables from affiliated companies (73.6% of total assets), and bonds and liabilities to banks.
Receivables from affiliated companies were up €774 million to €5,365 million (previous year: €4,591 million). This change was mainly due to a cash pool receivable from Covestro Deutschland AG.
All receivables and other assets has maturities of less than one year.
Property, plant and equipment was immaterial. Trade accounts receivable of €25 million (previous year: €1 million), which were almost exclusively due from affiliated companies, and prepaid expenses of €6 million (previous year: €8 million) were also immaterial in relation to total assets. Other assets of €57 million (previous year: €76 million) mainly included income tax and VAT receivables.
Covestro AG’s equity amounted to €4,924 million (previous year: €3,884 million). This corresponded to an equity ratio of 67.6% (previous year: 59.7%). In fiscal 2025, Covestro AG’s capital stock rose from €189 million to €207.9 million as a result of the issuance of 18,900,000 new no-par value bearer shares with a proportionate interest in the capital stock of €1.00 each. The net loss for the year of €137 million led to a decline in equity.
Equity was set against provisions of €81 million (previous year: €145 million) and liabilities of €2,280 million (previous year: €2,479 million).
Provisions comprised provisions for pensions of €26 million (previous year: €24 million), tax provisions of €32 million (previous year: €50 million), and other provisions of €23 million (previous year: €71 million). The decrease in provisions for taxes by a total of €18 million was largely attributable to the reduction in provisions for settling possible tax claims. Other provisions related primarily to personnel commitments. The decline was mainly attributable to the full use of the provision for consultancy services in connection with the takeover offer in an amount of €46 million. Moreover, lower expenses in connection with short-term variable compensation (Covestro PSP) led to a decline in other personnel-related provisions.
The decrease in liabilities to banks to €555 million (previous year: €821 million) was due to the repayment of Schuldschein loans of €240 million as scheduled and the repayment of other loans in an amount of €225 million. A new loan raised in the amount of €200 million had an offsetting effect. The increase in payables to affiliated companies was mainly due to a rise in rights to loss absorption on the basis of the profit and loss transfer agreement with Covestro Deutschland AG. Other liabilities declined mainly because of the full repayment of commercial paper of €40 million.
According to their terms, the remaining euro bonds totaling €1.5 billion have the following maturities: €500 million matures in the year 2026 and €1.0 billion matures in one to five years. Moreover, liabilities to banks totaling €403 million are due in the year 2026 and another €152 million is due in one to five years. All other liabilities are due within one year. Some of the existing loan agreements include change-of-control clauses. Where the lenders have not waived formal termination rights based on such clauses, the corresponding liabilities to banks recognized in the balance sheet are reported as current. This relates to liabilities of €400 million, of which €200 million was classified as noncurrent in the previous year.