| Summary statement of cash flows | ||||
|---|---|---|---|---|
| 2nd quarter 2024 |
2nd quarter 2025 |
1st half 2024 |
1st half 2025 |
|
| € million | € million | € million | € million | |
| EBITDA | 320 | 270 | 593 | 407 |
| Income taxes paid | (42) | (51) | (80) | (85) |
| Change in pension provisions | (8) | 16 | (19) | (2) |
| (Gains)/losses on retirements of noncurrent assets | (4) | (20) | (7) | (21) |
| Change in working capital/other noncash items | (247) | (258) | (491) | (415) |
| Cash flows from operating activities | 19 | (43) | (4) | (116) |
| Cash outflows for additions to property, plant, equipment and intangible assets | (166) | (185) | (272) | (365) |
| Free operating cash flow | (147) | (228) | (276) | (481) |
| Cash flows from investing activities | (375) | (150) | (218) | (306) |
| Cash flows from financing activities | 244 | (52) | 169 | 416 |
| Change in cash and cash equivalents due to business activities | (112) | (245) | (53) | (6) |
| Cash and cash equivalents at beginning of period | 684 | 742 | 625 | 509 |
| Change in cash and cash equivalents due to exchange rate movements | (3) | (8) | (3) | (14) |
| Cash and cash equivalents at end of period | 569 | 489 | 569 | 489 |
In the second quarter of 2025, net cash outflows from the Covestro Group’s operating activities amounted to €43 million (previous year: net cash inflows of €19 million). This development was attributable in particular to a higher amount of cash tied up in working capital and lower EBITDA. The higher amount of cash tied up in working capital was mainly due to the drop in trade accounts payable. After deduction of cash outflows of €185 million for additions to property, plant and equipment and intangible assets (previous year: €166 million), free operating cash flow in the second quarter of 2025 totaled €–228 million (previous year: €–147 million).
Cash flows from operating activities in the first half of 2025 accounted for net outflows of €116 million (previous year: €4 million). The decrease in EBITDA was partially offset by a smaller amount of cash tied up in working capital than in the previous-year. After deduction of cash outflows of €365 million for additions to property, plant and equipment and intangible assets (previous year: €272 million), free operating cash flow totaled €–481 million (previous year: €–276 million).
Net cash outflow for investing activities in the second quarter of 2025 totaled €150 million (previous year: €375 million). This was above all due to cash outflows for additions to property, plant, equipment, and intangible assets of €185 million (previous year: €166 million).
In the first half of 2025, the net cash outflow from investing activities totaled €306 million (previous year: €218 million). This was above all due to cash outflows for additions to property, plant, equipment, and intangible assets of €365 million (previous year: €272 million).
In the second quarter of 2025, the Covestro Group’s net cash outflow from financing activities totaled €52 million (previous year: net cash inflow of €244 million), mainly because of the repayment of commercial paper under the European Commercial Paper Program (ECPP) in the amount of €189 million as well as payments of €189 million for current liabilities to banks in China. The settlement of lease liabilities of €40 million also triggered net cash outflows. Conversely, net cash inflows resulted primarily from a loan of €200 million raised from the European Investment Bank (EIB) as well as proceeds of €157 million from current liabilities to banks in China. In addition, the issuance of commercial paper led to cash inflows of €35 million.
In the first half of 2025, financing activities gave rise to a net cash inflow of €416 million (previous year: €169 million). These cash inflows were above all attributable to proceeds of €539 million from incurring new current liabilities to banks in China and the issuance of commercial paper of €224 million. At the same time, the loan raised from the EIB brought a net cash inflow of €200 million. Net cash outflows, on the other hand, resulted especially from the repayment of commercial paper amounting to €229 million and payments of €189 million for current liabilities to banks. The settlement of lease liabilities of €82 million also triggered net cash outflows.
| Net financial debt | ||
|---|---|---|
| Dec. 31, 2024 | June 30, 2025 | |
| € million | € million | |
| Bonds | 1,492 | 1,493 |
| Liabilities to banks | 870 | 1,387 |
| Lease liabilities | 736 | 712 |
| Liabilities from forward exchange contracts | 17 | 28 |
| Other financial debt | 41 | 37 |
| Receivables from forward exchange contracts | (6) | (36) |
| Gross financial debt | 3,150 | 3,621 |
| Cash and cash equivalents | (509) | (489) |
| Current financial assets | (23) | (22) |
| Net financial debt | 2,618 | 3,110 |
Gross financial debt grew by €471 million compared with the figure on December 31, 2024, to €3,621 million as of June 30, 2025. This rise was caused in particular by a €517 million increase in liabilities to banks, which was mainly driven by the net proceeds from current liabilities to banks in China and the loan raised from the EIB described in the “Cash Flows from Financing Activities” section.
Cash and cash equivalents decreased in comparison with the figure on December 31, 2024, by €20 million to €489 million. This was due mainly to cash outflows of €365 million for additions to property, plant and equipment and intangible assets and negative cash flows from operating activities of €116 million. Conversely, higher cash flows from financing activities were the main factor driving a €416 million increase in cash and cash equivalents. At the same time, interest and dividends received in an amount of €23 million as well as cash inflows of €21 million from sales of property, plant, equipment and other assets led to a rise in cash and cash equivalents.
In comparison with December 31, 2024, the Covestro Group’s net financial debt rose by €492 million to €3,110 million as of June 30, 2025.