Covestro AG Lowers 2025 Financial Forecast

Covestro AG has announced a revised outlook for its 2025 fiscal year financial performance. The company has lowered expectations for EBITDA, free operating cash flow (FOCF), and return on capital employed over weighted average cost of capital (ROCE over WACC). This adjustment reflects a persistently weak global economy, with no signs of short-term recovery.

The revised forecast sets EBITDA between EUR 700 million and EUR 1,100 million, down from the previous projection of EUR 1,000 to EUR 1,400 million. The market consensus had estimated EUR 931 million. FOCF is now expected to range from EUR -400 million to EUR +100 million, compared to prior estimates between EUR 0 and EUR 300 million, with a consensus of EUR 106 million. ROCE over WACC is now projected to be between -9 and -5 percentage points, also lower than prior expectations.

Preliminary figures for the second quarter 2025 show an EBITDA of EUR 270 million, aligning with earlier forecasts. This includes the impact of a EUR 43 million release of bonus provisions. The official second-quarter financial report is scheduled for release on July 31, 2025.