Covestro Q1 EBITDA halves, but in line with expectations

LONDON (ICIS)–Covestro’s Q1 2025 earnings before interest, tax, depreciation and amortization (EBITDA) halved compared to last year, but were at the upper end of its forecast, the German producer announced on Tuesday.

€ million	Q 1 2025	Q1 2024	% change
EBITDA*	137	273	-49.8
Sales	3,477	3,510	-0.9
Net income	-160	-35	357.1
Free Cash Flow (FCF)	-253	-129	96.1

*EBITDA – earnings before interest, tax, depreciation and amortization

Key points

• The key driver of EBITDA fall was the planned closure of the POSM site in Maasvlatke, Netherlands.
• The closure hit earnings in the Performance Materials segment. Although sales remained stable year, margins were eroded by high energy costs.
• The Solutions & Specialties segment marked a slight decrease in sales compared to last year (from €1.8 billion to €1.7 billion), as increased sales volumes and positive exchange rate effects were not enough to offset the decline in average selling prices.
• “The first quarter of this fiscal year has once again demonstrated the volatile and challenging nature of a market environment increasingly characterized by trade conflicts and growing protectionism,” said Covestro CFO Christian Baier.
• CEO Markus Steilemann said the Q1 figures showed that Covestro remains “on course… with stable sales but continued pressure on earnings.”

Outlook

• In response to volatile changes in US tariff policy, Covestro narrowed its EBITDA guidance to €1.0-1.4 billion (previously €1.0-1.6 billion), with an FCF range forecast to stay €0-300 million.
• Covestro continues to implement its sustainable future strategy, focusing on sustainable growth, saving €400 million globally by 2028 from increased efficiency and digitalization, while pushing towards fully circular and climate-neutral production.
• “Whoever hesitates in these turbulent times loses. But whoever acts prudently now can shape the future. That is precisely what we are doing – with full conviction, high speed and a clear vision,” said Steilemann

Thumbnail image credit: Covestro