Accelerating Structural Improvements Through Organizational Streamlining and AI-Driven Innovation
Covestro announced on February 27 that it recorded sales of 12.9 billion euros (approximately KRW 21.8272 trillion) and a net loss of 644 million euros (approximately KRW 1.0892 trillion) last year.
Last year’s sales represented a decrease of 8.7% compared to the previous year, due to a combination of factors such as declining sales prices across all regions, exchange rate effects, and global oversupply. EBITDA (earnings before interest, taxes, depreciation, and amortization) reached 740 million euros (approximately KRW 1.2521 trillion), which is in line with the previously provided guidance range of 700 to 800 million euros.
By business segment, the Performance Materials division posted sales of 6.1 billion euros and EBITDA of 375 million euros, impacted by price declines and costs associated with the STRONG program. The closure costs for the Maasvlakte plant in the Netherlands were also reflected in the results. The Solutions & Specialties division maintained relatively stable performance, reporting sales of 6.6 billion euros and EBITDA of 681 million euros.
Through the STRONG transformation program launched in 2024, Covestro achieved cumulative cost savings of 275 million euros by the end of 2025. The company is simultaneously pursuing company-wide structural improvements such as operational efficiency, organizational streamlining, and digital/artificial intelligence (AI)-based work innovation. Covestro aims to achieve annual cost savings of 400 million euros by 2028.
Markus Steilemann, CEO of Covestro, stated, “2025 was a year of significant uncertainty in the global market, but we have continued to reorganize our business around the ‘Sustainable Future’ strategy,” adding, “Our partnership with XRG has become a vital turning point that further strengthened our foundation for future growth.”
Christian Baier, CFO of Covestro, said, “The restructuring of our cost structure and process improvements are already yielding visible results. In particular, this capital increase has played a crucial role in securing financial flexibility, allowing us to continue investing for future growth even in a highly volatile market environment.”
Covestro completed its strategic partnership with XRG and a capital increase totaling 1.17 billion euros on December 10 last year. This move is seen as a measure to strengthen the company’s financial structure and enhance its ability to execute long-term business strategies.
XRG plans to pursue a squeeze-out procedure at this year’s general shareholders’ meeting, and Covestro’s management and supervisory board are supporting this in accordance with the investment agreement. Once the procedure is completed, the speed of strategic execution is expected to increase further through the simplification of corporate governance and the alleviation of regulatory burdens.
Covestro forecasts that this year will continue to present a challenging business environment, given the lack of a clear recovery in global demand. Considering structural factors such as oversupply, pricing pressures, and the strengthening of protectionism, the company will provide qualitative rather than quantitative guidance from this year onward.
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