The plant, which shall create 35 new jobs, will be built at Chemical Park Delfzijl at the northern Coast of the Netherlands. It will use BioBTX's proprietary ICCP technology, which converts the type of mixed plastic waste that would otherwise be incinerated or put to landfill via catalytic pyrolysis into aromatic oil consisting of benzene, toluene and xylenes (B-T-X). These are the same building blocks the chemical industry uses today in coatings, pharmaceuticals and performance materials. They can also be used for the isocyanate production (MDI/TDI) of Covestro, out of which soft foam for e.g. mattresses or rigid foam for insulating refrigerators are made.

"We've followed BioBTX's progress for years and are very happy to now see the point where the technology proves itself at industrial scale," says Dr. Thorsten Dreier, Chief Technology Officer at Covestro. "This marks a very important step. Moreover, it processes mixed plastic waste instead of a single sorted stream, which is exactly the kind of recycling we need more of at scale to make a circular economy become reality."

In total, the plant is expected to recycle about 20,000 tonnes of waste and produce around 10,000 tonnes of renewable aromatic oil and 8,000 tonnes of sustainable by-products from it annually. Compared to conventional, fossil-based BTX production, the process is expected to cut greenhouse gas emissions of the resulting chemical building blocks by 70 to 80 percent.

“Reaching this key milestone in the development of BioBTX marks an important step in our journey towards our mission of making circular chemistry possible. I am very proud of the full BioBTX team and shareholders whose dedication and commitment has made this achievement possible. We are going to build our world’s first fully sustainable aromatic plant. A great accomplishment!” says Ton Vries, Co-founder and CEO of BioBTX.

This milestone concludes a 14-year journey from an idea in 2012 through lab- and pilot-scale to commercial execution. While this first plant focuses on mixed plastic waste, the ICCP technology is feedstock-flexible, with the potential to expand to other sources in the future, such as biomass.

KOLLEKT brings together FORVIA HELLA as coordinator alongside partners BMW, Covestro, Geba, Fraunhofer IEM, Fraunhofer UMSICHT, the University of Paderborn, Hamm-Lippstadt University of Applied Sciences, the Helmholtz-Zentrum Dresden-Rossendorf (HZDR), and SW Maschinenservice. The project runs from June 2026 to May 2029, with a total BMFTR funding volume of €4.371 million including project lump sums.

From Headlamp to Tomorrow's Resource

The automotive industry faces growing pressure from resource scarcity, supply security concerns, and tightening regulatory requirements — most notably the EU End-of-Life Vehicles (ELV) Regulation. Technological hurdles, cost pressure, and insufficient product recyclability have so far prevented efficient plastics cycles from becoming established at scale. KOLLEKT directly addresses this gap by placing "Design for Circularity" at its core — product design optimized for recyclability from the very beginning, complemented by four R-strategies: Repair, Re-Use, Remanufacture, and Recycle. KOLLEKT researches how future lighting components can be made repairable, reusable, and recyclable — and what production and logistics processes this requires.

Covestro's Role: Materials That Enable Circularity

As a key materials partner in KOLLEKT, Covestro contributes its deep expertise in high-performance polymers and sustainable material solutions — working across the full circular value chain, from supporting circular product design and material concepts through to the evaluation of recycling pathways for polycarbonate. Covestro's Makrolon®, Bayblend® and Apec® materials are among the most widely used plastics in automotive lighting applications, and bringing these materials back into high-quality use cycles is central to the project's ambition. Covestro's involvement ensures that material properties, recyclate quality, and end-of-life behavior are fully considered from the design stage onward — a prerequisite for true circularity, and a direct expression of Covestro's vision of a fully circular economy.

"KOLLEKT is a prime example of how we create value together with our customers and partners — going beyond material supply to co-designing solutions from the very beginning," says Monique Buch, Chief Commercial Officer at Covestro. "By aligning early across the value chain with BMW, FORVIA HELLA and other partners, we can embed circularity directly into product development. That is what true co-creation looks like—and how we turn sustainability ambitions into tangible outcomes.”

Intelligent Dismantling and Digital Twins

A flexible, AI-powered robotic dismantling cell is central to KOLLEKT's technical approach. Using digital product twins and AI-based data processing, the project establishes the foundation for reuse and recycling at industrial scale — enabling precise, largely automated, and material-pure disassembly. Networked data exchange integrates material, product, and process information in real time, creating a transparent, traceable circular ecosystem.

Building on Proven Foundations

KOLLEKT builds directly on its predecessor project NALYSES, successfully completed in 2026, and advances its findings into a comprehensive, end-to-end circular value creation model. Early involvement of SMEs, industry associations, and networks — alongside conferences, academic teaching, and publications — ensures that results can be scaled and transferred to other sectors beyond automotive lighting, including electrical and electronics applications.

Advancing Circular Economy Goals

KOLLEKT aligns directly with Covestro's strategic commitment to the circular economy. Covestro continues to expand its portfolio of circular solutions — including its post-consumer recycled Circular Intelligence (CQ) product families like the R, RV and RP material lines. Notably, RV and RP product lines address post-consumer car2car recycling, featuring recycled end-of-life vehicle materials such as headlamps, with third-party certification. The insights generated by KOLLEKT will contribute to meeting EU ELV recycling targets toward 2032 and support automotive manufacturers in fulfilling expected recycled content quotas — without compromising performance or quality. Through its global production and supply network, Covestro supports decarbonization and resource circularity in mobility, truly elevating materials into solutions that matter.

"KOLLEKT is a concrete step toward closing the loop on high-performance polycarbonate in automotive applications," says Guido Naberfeld, Head of Sales and Market Development Mobility at Covestro. “By combining Design for Circularity with advanced recycling technologies and digital traceability, we are demonstrating that sustainability and material performance are not a trade-off. This is how Covestro contributes to meeting the EU's ELV targets and helps the entire automotive value chain transition to a truly circular model.”

The agreement marks a significant evolution in the two companies’ relationship – moving beyond traditional supply towards collaboration across the value chain, driven by a shared conviction that the future of mobility, energy and intelligent systems demands deep co-innovation. For Covestro, the partnership directly supports its “Sustainable Future” strategy by advancing innovations that enable circular solutions and drive growth in industries where material performance is becoming an increasingly important source of competitive advantage.

“At Covestro, we believe in the power of material science and collaboration to drive industry transformation – and this partnership with BYD is a strong example of that," said Lily Wang, President of Engineering Plastics at Covestro. "BYD's expanding portfolio represents some of the most exciting and demanding material challenges of our time, and that is exactly where Covestro’s depth of expertise becomes most valuable. We look forward to translating that expertise into tangible solutions together with BYD.”

“Covestro has proven itself as a trusted material innovation partner, and this agreement reflects our confidence in taking that relationship to a new level,” said Head of Materials, BYD. “As we continue to push the boundaries of what is possible in future mobility and beyond, we look forward to co-innovating with Covestro to develop the advanced material solutions that will redefine future industries and accelerate our global ambitions.”

Material expertise complementing BYD's cutting-edge applications

Under the MoU, the two companies will deepen their collaboration across new energy vehicles, power batteries, public transportation, energy storage, and new technology applications. The partnership will include joint innovation initiatives, technology co-development and strategic investment opportunities.

Covestro will provide dedicated R&D resources to co-develop new material technologies, volume supply security, early access to new material innovations and customized technical support. BYD in turn commits to proactively engaging Covestro in new projects and technology roadmaps across its entire business portfolio.

Covestro’s world-class material expertise in polycarbonate and polyurethane solutions, backed by decades of experience in automotive and electronics application, complements BYD’s key application areas:

• New energy vehicles: Proven material solutions in lighting, premium interior and exterior, and intelligent electronic components, delivering both aesthetic and functional value for smart mobility.
• Power batteries & energy storage: Lightweight, high-performance materials that balance safety, thermal management, and cost efficiency across EV and residential applications.
• Next-generation technologies: High-performance polymer solutions engineered for extreme demands – combining lightweight construction, structural integrity, thermal and electrical management, and durability to enable complex technology platforms of the future. 

Building a more sustainable industrial future

Beyond product co-development, the two companies are committed to advancing low-carbon and circular material solutions that reduce the environmental footprint of next-generation mobility, energy and intelligent systems. Covestro’s CQ (Circular Intelligence) labeled materials, made with at least 25 percent alternative raw materials, form a key part of this commitment.

• Preliminary sales amount to EUR 6,729 million.
• Preliminary EBITDA amounts to EUR 669 million. 

This development is mainly attributable to higher prices while raw material prices were increasing with a time-delay. 

Consequently, for the fiscal year 2026, Covestro adjusts its EBITDA forecast. EBITDA is now expected significantly above previous year level. The previous forecast projected EBITDA around previous year level. 

Unchanged, Free operating cash flow (FOCF) and ROCE over WACC each are expected significantly better than 2025 level. Unchanged as well, greenhouse gas emissions, measured via CO₂ equivalents, are expected to be between 3.9 million tons and 4.5 million tons. 

The interim statement of the first half year 2026 will be published on July 31, 2026. 
 

With the acquisition, Covestro expands its production footprint for HDI derivatives and reaffirms its commitment in two important regions, while strengthening its ability to serve customers in the coatings and adhesives industry with greater flexibility and reliability.

HDI derivatives are essential building blocks for high-performance polyurethane coatings, adhesives and sealants. They are used in a broad range of applications, including automotive coatings, protective coatings for infrastructure, marine coatings, wood furniture, electronics and other demanding industrial applications.

“By adding these sites in Thailand and the US, we are strengthening our regional production capabilities and improving our ability to supply customers from locations close to them,” said Thomas Roemer, Head of the Business Entity Coatings and Adhesives at Covestro. “Reliable supply, regional availability and technical expertise are critical for our customers, especially in a challenging market environment. This acquisition helps us deliver even better on those needs.”

The two sites complement Covestro’s existing production network for HDI derivatives in major regions including Europe, Asia and North America. The additional capacities will further enhance Covestro’s ability to respond to customer demand and support long-term growth in high-performance and more sustainable coatings and adhesives applications.

“Strong customer relationships are built on trust, reliability and the ability to deliver value over time,” said Monique Buch, Chief Commercial Officer of Covestro. “This acquisition strengthens our position in a business where customers count on us for consistent quality, regional supply and application expertise.”

The acquisition follows Covestro’s earlier acquisition of the Resins & Functional Materials business from DSM and continued investments in organic growth, underlining the company’s commitment to the coatings and adhesives industry.

Meeting growing global MDI demand 

“This investment program is a clear commitment to our customers and to our long-term growth in the MDI market,” said Dr. Markus Steilemann, Chief Executive Officer of Covestro. “We see strong and sustained demand, and at the same time increasing requirements for supply reliability. With these planned investments, we are strengthening our ability to serve our customers at scale while leveraging our technology and operational strengths. XRG’s long-term commitment provides the right foundation to execute these projects and enables us to leverage integrated value chains, strengthen supply resilience and compete at a global scale.” 

Long-term demand for MDI (methylene diphenyl diisocyanate), a key raw material for polyurethane rigid foams, is expected to grow globally, driven by multiple applications: building & construction (energy-efficient insulation), appliances (food chain efficiency and sustainability-driven modernization), and sports and lifestyle applications – particularly in Asia and the Middle East. At the same time, demand growth is projected to outpace capacity additions, increasing the importance of reliable, large-scale supply. Covestro is one of the world’s leading MDI producers with production sites in Europe, Asia, and North America. 

China: Building on proven operational excellence 

Covestro is preparing to expand its existing site in China with a new MDI production train. In addition to the main MDI unit, the investment includes upstream plants and supporting infrastructure to manufacture key intermediates on site, creating an integrated production setup. The facility will use the proprietary MDI AdiP technology, which significantly reduces energy consumption. Overall, the new MDI train is designed to operate with net-zero greenhouse gas emissions (Scope 1 & 2). 

“Our Covestro Integrated Site Shanghai combines strong reliability with proven capabilities in delivering complex projects,” said Dr. Thorsten Dreier, Chief Technology Officer of Covestro. “The new MDI train will improve overall production efficiency and underlines our ambitions to reach operational climate neutrality. This is also achieved thanks to our proprietary AdiP technology, which has been successfully demonstrated at industrial scale in Germany." 

UAE: Exploring strategic ecosystem advantages 

The feasibility study for a potential new MDI production facility in the United Arab Emirates will assess synergies within the emerging ecosystem in Al Ruwais Industrial City, building on the previously announced partnership with TA’ZIZ and Fertiglobe. A globally oriented facility of this scale would complement Covestro's local-for-local production approach and strengthen supply security for customers across all regions. 

The assessment will consider access to energy from renewable sources and the integrated industrial platform of the TA’ZIZ chemicals hub, including reliable local supply of key raw materials such as chlorine and ammonia. A potential investment would build on the project blueprint from Shanghai. 

XRG brings strategic perspective to Covestro’s growth options 

Both initiatives reflect Covestro’s ambition to pursue long-term growth opportunities in the global MDI market with discipline and focusing on sustainable value creation. As Covestro’s strategic investor, XRG brings a long-term investment perspective and global platform view to this next phase. 

“The planned expansion in China and the feasibility study in the UAE show how we are targeting opportunities to strengthen supply resilience, enhance competitiveness and support customers over the long term”, Steilemann added. 

Fossil-based aniline production generates approximately 20 million tonnes of CO₂ emissions annually worldwide. To specifically reduce the carbon footprint of aniline production, Covestro uses a tailored microorganism in its bio-based process that converts industrial sugars from plant-based biomass into an intermediate product through fermentation. In a second step, chemical catalysis converts this intermediate into aniline with 100% plant-based carbon.

Continuous Fermentation Process: A Technological Breakthrough

Bio4PURConti aims to take this a step further: instead of the fed-batch method used so far, in which raw materials are added and product harvested in stages, the project targets a continuous fermentation technology for the first time. By using plant-based sugars, e.g. from hardwood biomass, it offers a renewable feedstock pathway. The resulting bio-based aniline is fully drop-in compatible with existing polyurethane value chains, meeting MDI specifications without requiring changes to downstream processes, making it a powerful lever for defossilization well beyond the chemical industry itself. The project scales from lab to 1.5 m³ semi-industrial demonstration at Bio Base Europe Pilot Plant (Ghent) and Covestro (Leverkusen), integrating cell recycling, real-time analytics and downstream processing. Key objectives include higher space-time yields and significant improvement in product carbon footprint.

"Bio4PURConti is a landmark project – not just for Covestro or the aniline market, but for the entire field of industrial biotechnology," says Dr. Markus Dugal, Head of Process Technology at Covestro. "Demonstrating continuous fermentation at semi-industrial scale for a high-volume raw material like aniline will set a new benchmark for what biotech processes can achieve in the chemical industry. Biology and engineering, when combined at scale, can fundamentally reshape how we produce the materials the world depends on."

A Consortium Driving European Biotech Leadership

The 10-partner consortium, spanning 7 countries, brings together leading industrial and academic organisations: Covestro Deutschland AG (Germany), Fibenol Imavere OÜ (Estonia), University of Stuttgart (Germany), Bio Base Europe Pilot Plant VZW (Belgium), Center for Advisory Systems in Technology, Dortmund e.V. – ZEDO (Germany), Norwegian University of Science and Technology – NTNU (Norway), Axel'One (France), VTT Technical Research Centre of Finland Ltd (Finland), Cluster Industrial Biotechnology – CLIB (Germany), and Asociación Española de la Innovación en el Marketing y la Inversión Sostenible – AEIMIS (Spain).

The project has a total budget of €8.4 million, with €7 million in EU funding, and runs for 42 months. Together, the consortium aims to significantly reduce the Product Carbon Footprint (PCF) of aniline in the future. As one of the world's leading aniline producers with a production capacity of over one million tonnes per year, Covestro is uniquely positioned to drive this transformation towards a more sustainable aniline production.

Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the Circular Bio-based Europe Joint Undertaking (CBE JU). Neither the European Union nor the granting authority can be held responsible for them.
This project has received funding from the Circular Bio-based Europe Joint Undertaking under the European Union's Horizon Europe research and innovation programme under Grant Agreement No. 101292477.

The project is supported by the Circular Bio-based Europe Joint Undertaking and its members.

ISCC PLUS-certified chlorine from Covestro is produced by using electricity from renewable sources, supporting a more sustainable production process and contributing to lower greenhouse gas emissions.

As of January 2026, the entire CR production of ARLANXEO is based on ISCC PLUS-certified chlorine, marking an important milestone in the company’s sustainability journey and its commitment to a more sustainable value chain. 
This transition is resulting in an average reduction in global warming potential (GWP) of approximately 20% compared to 2025 levels¹, depending on the specific product grade.

“Integrating ISCC PLUS-certified materials into our production is a key step in reducing the environmental footprint of our CR rubber products,” said Niels van der Aar, Head of Sustainability at ARLANXEO. “It underlines our commitment to supporting customers with more sustainable material solutions while advancing transparency along the value chain by supplying corresponding product environmental footprint data for ARLANXEO’s entire CR product portfolio.” 
As a key chemical supplier to ARLANXEO, Covestro plays a crucial role in enabling this transition by supporting the availability of ISCC PLUS-certified chlorine.

“At Covestro, we support our customers in reducing emissions along the value chain by supplying more sustainable basic chemical raw materials from our multiple ISCC PLUS-certified production sites,” said Moritz Winterstein, Head of Trading Cluster Basic Chemicals EMEA at Covestro. “Our collaboration with ARLANXEO demonstrates how certified raw materials and renewable electricity can contribute to lowering the product environmental footprint of downstream applications and support customers in achieving their sustainability targets.”

The introduction of ISCC PLUS-certified feedstock, like ISCC PLUS Chlorine, strengthens the position of ARLANXEO as a leading supplier of more sustainable elastomer solutions, particularly for industries with ambitious climate targets, such as automotive, construction, industrial and adhesive applications.

In addition, ARLANXEO can also offer Baypren® Eco grades combining ISCC PLUS-certified chlorine and ISCC PLUS-certified butadiene, enabling further reductions¹ in environmental impact and supporting customers in achieving their sustainability targets without any compromise in performance.

_{¹ Relative changes in Global Warming Potential – GWP100 incl. biogenic [kg CO₂e] 
Example of the relative change of the Global Warming Potential (GWP100 incl. biogenic [kg CO₂e] for Baypren^® 116 M45 as from January 2026. In the graph also the Baypren^® Eco 116 M45 is added as Eco option. A full Product Environmental Footprint report is available upon request.}

The successful implementation exemplifies how “The Material Effect” elevates materials into solutions that matter. This was achieved through an innovative partnership between Toyota Motor Corporation, Toyota Motor Kyushu, INC., parts supplier Kojima Industries Corporation, and Covestro. Together, the four companies conducted comprehensive testing and evaluation to ensure the recycled material met all performance requirements without compromising quality standards.

Integrating high levels of post-consumer recycled content into visible premium interior parts has typically been a high technical hurdle - making use in such areas difficult with many resins - yet the Bayblend® resin used in the LEXUS ES demonstrates that this barrier can be overcome. This marks one of the first integrations of 35% post-consumer mechanically recycled content in visible components within a premium automotive segment.

Meeting Performance Standards 

By fusing premium materials with specialized expertise, Bayblend® T85X R35 CQ delivers on all specifications for multiple Lexus ES interior parts while incorporating post-consumer recycled content. The material delivers essential performance characteristics including durability, surface quality, dimensional stability, and processability while integrating seamlessly into existing manufacturing processes.

"This collaboration demonstrates that more sustainable materials can meet the required standards of premium automotive applications," said Fumihiro Togashi, Global Strategic Account Manager, Toyota Group at Covestro. “By working closely with Kojima Industries Corporation, Toyota Motor Corporation, and Toyota Motor Kyushu, INC. throughout the development process, we've proven that environmental responsibility and product excellence can go hand in hand.”

The material's versatility extends beyond pre-colored applications to paintable components, enabling use in both visible interior areas and exterior parts. Covestro ensures consistent quality and supply reliability by utilizing one of the most dependable post-consumer recycled sources in the plastics industry. The company's global production footprint further enhances cross-regional supply stability and provides capacity to support anticipated volume increases as more sustainable automotive materials gain broader market adoption.

Advancing Circular Economy Goals

This adoption aligns with the four companies' sustainability strategies. Covestro positions the circular economy as a strategic pillar and continues expanding related product families. Toyota Group leads industry initiatives in environmental stewardship and resource circularity. In parallel, Kojima Industries Corporation and Kojima Group drive sustainability across manufacturing and supply chains, supporting circular material use and responsible sourcing.

The partially recycled plastic solution supports fulfilling expected quotas related to the ELV Regulation, demonstrating how more sustainable materials can simultaneously meet performance and regulatory requirements in the automotive industry.

Looking Ahead

Covestro continues expanding its circular economy solutions through “The Material Effect” approach, including the recently launched "RV line”, part of the post-consumer recycled R series – featuring recycled end-of-life vehicle materials such as headlamps, with third-party certification. These developments address critical automotive industry challenges amid tightening environmental pressures and regulatory requirements.

The innovations will contribute to EU ELV recycling targets toward 2032. Through its global production and supply network, Covestro supports decarbonization and resource circularity in mobility while enabling automotive manufacturers to meet evolving regulations without compromising product quality - truly elevating materials into solutions that matter.

Across modern football, materials play a role in helping enable speed, control, comfort, durability and reliable performance, from equipment and apparel to infrastructure and digital connectivity.

Covestro is highlighting this “material effect” behind football: the often unseen contribution of material science to the way the sport is played, experienced and connected around the world.

The athletes enabled by materials

Modern football has become faster, more precise and more connected. Players sprint more, press harder, change direction faster and perform under intense physical and mental pressure. Behind this evolution are better training methods and data analytics, but also materials that help make high performance more reliable.

The football itself is a good example. Modern balls use advanced materials, carefully engineered surfaces and precise construction methods to support consistent weight, shape, rebound and flight behavior, even under demanding weather conditions. Compared with traditional leather balls, today’s footballs are designed for greater reliability and more predictable performance.

Footwear has also changed fundamentally. Modern football boots combine lightweight uppers, flexible structures and high-performance sole plates to support grip, acceleration, agility and ball control. The contact between player, pitch and ball has become a highly engineered interface.

Sportswear plays its part as well. Lightweight, breathable and durable textiles can help manage moisture and comfort during high-intensity performance. Covestro’s INSQIN^® waterborne polyurethane technology enables high-performance textile coatings that can provide softness, water resistance and long-lasting performance while supporting more sustainable manufacturing approaches.

Materials beyond the pitch

The material effect extends beyond players and equipment. Stadiums, training facilities and broadcast infrastructure also depend on advanced materials.

Lightweight and durable polycarbonate solutions have been used in large-scale roofing applications. They can help create weather-resistant structures that protect spectators while reducing weight and maintenance requirements.

At the same time, football is becoming increasingly digital. From connected match technologies and live analytics to broadcast systems, streaming platforms and fan experiences, every match depends on the reliable flow of data. Advanced polymer materials help protect cables, connectors and electronic components and support the infrastructure that brings the game to fans around the world.

As sport becomes more connected, the infrastructure behind it becomes more demanding. Data centers, communication networks and electronic systems require materials that can support reliability, protection and performance at scale.

Innovation is a team sport

The evolution of football shows how performance is rarely the result of a single factor. It comes from the interaction of talent, preparation, technology and the right materials.

The same applies in business. As customer challenges become more complex and markets move faster, innovation increasingly depends on collaboration across disciplines, industries and value chains.

“Innovation today needs to be fast, focused and collaborative,” said Monique Buch, Chief Commercial Officer at Covestro. “Co-creation with customers works much like collaboration in a football team: different strengths come together around one shared goal, focusing their preparation to secure the win, and trust and speed making the difference.”

From the pitch to the stadium and from equipment to digital infrastructure, football shows how advanced materials can help shape performance where it matters most.

The Asia-Pacific TPU market, particularly in South China, continues to see strong demand from fast-growing sectors such as consumer electronics, automotive and specialty films. The Guangzhou AD Center strengthens the company’s ability to translate this demand into tailored material solutions through closer technical collaboration with customers.

“This new Application Development Center represents a strategic cornerstone in our global TPU strategy to grow in high-value and emerging segments in Asia-Pacific,” said Dr. Andrea Maier-Richter, Global Head of TPU at Covestro. “We will explore, pilot and upscale new application fields for TPU in robotics, healthcare and mobility solutions together with our customers – in close collaboration and at the heart of the market.”

Capabilities designed for speed and precision

The center is designed to help customers move faster. Its processing simulation lines replicate real production conditions in extrusion and injection molding, enabling rapid formulation adjustments and material modification. These capabilities help reduce trial cycles, shorten time-to-market, and deliver solutions tailored to specific application needs.

“Asia is home to some of the world’s most dynamic and fast-moving industries, and our customers here expect partners who can keep pace with them. This center is our answer to that, bringing together our cross-business capabilities under one roof right here in South China,” said Holly Lei, President Covestro China. “It also reflects our deep commitment to this market and our belief that true innovation happens when you are close to your customers and the industry.”

Unlocking value through cross-business synergies

A distinctive feature of the Guangzhou AD Center is its multi-business setup, with Engineering Plastics (EP) and Specialty Films (SF) teams co-located on the same site, enabling close collaboration and faster integration of capabilities. The EP unit brings compounding expertise and color competence, supporting in-house color matching for applications such as consumer electronics, footwear and paint protection films (PPF). The SF unit enables pilot production and finished product commissioning for high-performance films and other extrusion-based applications. This integrated approach brings together capabilities across business entities, creating added value for customers.

“Innovation at Covestro is led by our markets and always strives to combine our global strengths across the business entities for our customers,” said Dr. Christian Haessler, Head of Global Innovation TPU at Covestro. “TPU is a material for a more sustainable future, and the Guangzhou AD Center will enable the development of highly versatile and recyclable TPU material solutions in one of the most dynamic innovation ecosystems worldwide.”

The Guangzhou AD Center is now open for customer and partner collaboration across Asia-Pacific, offering end-to-end customer support from initial material consultation to pilot production and troubleshooting.

Transfer of the minority shareholders’ shares to XRG approved 

The Annual General Meeting approved the squeeze-out under German stock corporation law and thus the transfer of the shares held by the minority shareholders to the main shareholder, XRG P.J.S.C., Abu Dhabi, United Arab Emirates, with 96.16% of capital stock. As announced, the cash compensation amounts to EUR 59.46 per share. 

“Despite the challenging market environment in the fiscal year 2025, we continued to future-proof Covestro and consistently advanced our transformation,” said Dr Markus Steilemann, Chief Executive Officer of Covestro. “With XRG as a partner at our side, we can now accelerate the implementation of our ‘Sustainable Future’ strategy even further. Today’s resolution on the corporate law squeeze-out will enable closer collaboration and even faster decision-making processes.” 

“Covestro has a strong technological foundation, high innovative strength and significant potential in key future markets. Together with XRG, this creates new strategic opportunities for the company’s long-term development. I am convinced that this positions Covestro very well to continue its successful transformation,” emphasized Dr Rainer Seele, Chairman of the Supervisory Board of Covestro. 

Election of Supervisory Board members 

The Annual General Meeting elected Mercedes Alonso Benito, Guy Janssens, Khaled Salmeen and Dr Rainer Seele as shareholder representatives to the Supervisory Board. The four members had already been appointed by the Local Court of Cologne in December 2025 and have now been elected by the Annual General Meeting for a regular term of office of approximately four years. The candidates bring extensive expertise in the fields of chemicals, finance, energy and corporate governance. 

No dividend payment for fiscal year 2025 

In line with the Group’s dividend policy, which links the dividend to the company’s economic situation, no dividend will be distributed for fiscal year 2025. The reason for this is again the Group’s negative net income for fiscal year 2025 of minus EUR 644 million. 

Further information and documents: 

Detailed voting results for the agenda items of the Annual General Meeting will be made available at Annual General Meeting | Covestro. 

The new compressor operates on the principle of a heat pump: Water vapor is generated during the production processes for TDI, a component of flexible foam. Covestro requires steam for many production processes, but the steam produced during TDI manufacturing is not hot enough. Therefore, some of it is released into the environment as waste heat. The compressor raises the steam to a higher temperature and pressure level, making it suitable for use in production processes.

“Energy efficiency is a key lever for transforming our production towards climate neutrality and a circular economy. The principle is: the less energy we need, the better,” says Thorsten Dreier, CTO of Covestro. “That’s why we’re using every opportunity to make our production even more energy-efficient with modern, innovative process technologies.” From 2005 to 2022, Covestro already reduced its energy consumption by around 40 percent. The next goal: By 2030, the company aims to consume 20 percent less energy per ton of product produced than in 2020.

This project is part of an energy efficiency strategy with which Covestro is driving its transformation to climate-neutral production. As part of the master plan, the company is continuously searching for further potential energy efficiency measures. “With these projects, we are not only reducing our CO₂ emissions, but also saving on energy costs,” says Andreas Doerfer, Global Energy Excellence Manager. “To achieve our energy efficiency target, we must utilize all available options for using the waste heat generated in our processes to manufacture our products.”

Following the installation of an energy-efficient reactor at the TDI plant last year, the new compressor for the Dormagen site is the next major project to future-proof the location: “This investment clearly demonstrates Covestro’s long-term belief in the Dormagen site and its commitment to investing here,” says Philip Bahke, Head of Operations in Dormagen and North Rhine-Westphalia.

Construction is scheduled to begin at the end of this year, with the compressor expected to go into operation in mid-2027.

Rainer Seele, Chairman of the Supervisory Board of Covestro, said: "Klaus Fröhlich is a proven financial expert with many years of experience in managing finances and companies in challenging market environments. With his clear financial perspective and his focus on performance, efficiency, and value creation, he will play an important role in further strengthening Covestro's competitiveness and in driving the consistent execution of the company's strategy." 

"I am very much looking forward to my new role at Covestro and would like to thank the Supervisory Board for its trust," said Klaus Fröhlich. "The company has a strong technological foundation, dedicated employees, and a clear strategic direction. Together with the Board of Management and teams worldwide, I aim to contribute to advancing the company's transformation and enabling sustainable, profitable growth." 

Klaus Fröhlich is Group Chief Investment Officer at the energy and chemical company ADNOC and has more than 25 years of experience in finance and international investment banking. He previously served as Chief Financial Officer in Saudi Arabia and worked for Morgan Stanley, most recently as Head of Investment Banking for the Middle East and North Africa. 

Orderly succession in the finance function 

Current Chief Financial Officer Christian Baier informed the Supervisory Board in December 2025 that he would not extend his contract and would leave Covestro at the end of his term in September 2026. With this early decision, he enabled a planned and orderly transition of his succession. Until his departure, Christian Baier will continue to perform his duties in full. 

The Supervisory Board would like to thank Christian Baier for his dedication and for his important role during a strategically decisive phase for Covestro, particularly in further developing the company's strategy and successfully implementing key transformation initiatives. 
 

To address this challenge, FILK Freiberg Institute, an independent research institution with expertise in polymer coatings for textile applications, collaborated with Optotransmitter-Umweltschutz-Technologie (OUT) e.V. The joint project, funded under the German Industrielle Gemeinschaftsforschung (IGF) program of the Bundesministerium für Wirtschaft und Energie (BMWE), focused on developing flexible, conductive polymer surfaces for next-generation smart textiles.

The goal was to enable the free distribution of multiple LEDs and sensors across a textile surface by creating a uniform conductive “potential field” within the material. This technology enables greater flexibility compared to conventional conductor tracks.

Creating a flexible conductive PU film using Impranil^®

To achieve the required combination of conductivity, elongation, and flexibility, FILK and OUT e.V. used water-based Impranil^® polyurethane dispersions from Covestro, creating a flexible conductive PU film into which carbon nanotubes were incorporated as electrically conductive additives.

Laser structuring of the conductive polymer surface allowed precise tuning of the electrical properties of the potential field, enabling LEDs and sensors to be distributed freely across the textile surface without traditional wiring. The active control of embedded LEDs through the integrated sensors supports real-time monitoring and bidirectional communication via modulated voltage or Bluetooth, depending on the application.

Dr. Martin Heise, Deputy Head of Department Functional Layer Systems at FILK Freiberg Institute, said: “Our goal was to rethink how electronics are integrated into textiles. By creating a conductive surface instead of fixed wiring using Impranil^® polyurethane dispersions from Covestro, we can distribute sensors and light sources far more freely, enabling new smart textile designs and applications.”

Dr. Iris Vela-Wallenschus, Project Manager at OUT e.V. noted: “Distributed electronics, real-time sensing, and bidirectional communication within a flexible textile substrate represent a meaningful step forward for wearable technology. Working with FILK and Covestro, we've shown that this kind of adaptive functionality is achievable at a level of sophistication that is difficult to achieve with conventional wiring approaches.”

Enabling a new generation of smart textiles

The result is a technology platform that combines conductive polymer materials, sensor integration, and intelligent control. This platform unlocks possibilities for new applications such as sensor-controlled newborn bodysuits for jaundice phototherapy. Current standard treatments for neonatal jaundice rely on blue light at approximately 455 nm in hospital incubators. A flexible bodysuit integrating blue LEDs and sensors directly into the garment could continuously monitor therapy progress and adjust light intensity and distribution in real time. This approach may contribute to the development of more flexible treatment options with the support of midwives.

Beyond this application, Impranil^® PUD-based formulations can be used in applications including heated textiles, pressure sensors, and flexible conductor tracks for wearable electronics. This system can also be adapted for scalable manufacturing processes such as digital printing, supporting broader adoption in industries including sportswear, automotive interiors, protective equipment, and connected IoT devices.

Dr. Torsten Pohl, Global Head of Textile Coatings at Covestro added: “This project highlights how material innovation can unlock new functionality in textiles. Our Impranil^® water-based polyurethane dispersions provided the flexibility, durability, and processability needed to turn a complex concept into a scalable smart textile platform. We're proud to have supported FILK and OUT e.V. in developing a system with real-world impact, from neonatal care through to the broader wearables market.”

To see what this flexible, conductive smart textile system looks like, visit Techtextil 2026 in Frankfurt between April 21 and 24. A demonstrator of the sensor-controlled newborn bodysuit for jaundice phototherapy will be on display at the Covestro booth (C79) in hall 11.0.

Marquardt, a leading supplier of smart mechatronic systems for automotive applications, set out to address this challenge with its concept car, “The Centum”. A key objective in The Centum project was to develop a door interior panel that maintained the visual and haptic properties of polyurethane (PU)-coated textile synthetics commonly used in automotive interiors, while enabling a dynamic color-changing responsive display to be invisibly embedded within the surface. This functionality supports emerging trends such as backlit surfaces and integrated control elements.

To realize this vision, Marquardt partnered with E Ink, a leader in advanced display technology known for durability, low energy consumption, and suitability for demanding environments. The challenge was to integrate the functional display into the interior design in a way that preserved the premium appearance and performance of coated synthetic surfaces, while allowing the display’s colors to remain clearly visible.

After evaluating multiple approaches, Marquardt approached Covestro to develop a suitable material solution. Covestro textile coating experts worked closely with both partners to develop a fully transparent film based on INSQIN^® waterborne PU technology, with Impranil^® DLC-F as the foundation. Impranil^® DLC-F is a waterborne polyurethane dispersion widely used in topcoats for automotive interior textile coatings. The result is a transparent coated synthetic that retains the premium texture of automotive textiles while allowing the display’s dynamic colors to be fully visible, fulfilling the demanding performance requirements of automotive interiors.

Felix Hake, Head of Innovation at Marquardt said: “With The Centum, we wanted to demonstrate how intelligent functions can be integrated into interior surfaces without compromising design or quality. Working with E Ink and Covestro allowed us to create a material solution that combines a premium tactile experience with responsive visual effects.”

Dr. Torsten Pohl, Global Head of Textile Coatings at Covestro added: “This project highlights the versatility of INSQIN^® PU technology and Impranil^® DLC-F. By developing a transparent, automotive-grade PU coated synthetic compatible with E Ink displays, we were able to support Marquardt in integrating dynamic functionality into familiar surface materials.”

Pete Valianatos, Senior Director, Strategic Initiatives & FPL Platform Management at E Ink, noted: “Our e-paper display technology is designed to deliver dynamic visual experiences with low power consumption, while maintaining the robustness required for demanding applications. Collaborating with Marquardt and Covestro has enabled us to demonstrate how E Ink displays can be integrated behind coated interior surfaces, allowing automotive designers to introduce adaptive color features without changing the established look and feel of premium materials.”

To see what this responsive functional surface looks like, visit Techtextil 2026, held in Frankfurt between April 21 and 24. A door panel demonstrator will be on display at the Covestro booth C79 in hall 11.0.

“For me, there is nothing more exciting than seeing innovation and accountability in their purest form, and the Team Sonnenwagen is exactly that” emphasizes Dr. Thorsten Dreier, Chief Technology Officer at Covestro. “Since 2018, they have inspired us because in them we recognize the same spirit we see in our partners, customers and in ourselves: people who move forward when others hesitate, who accelerate the transition to a more circular, climate-neutral future, and who create impact. We are proud to have been their main sponsor and partner for all these years, and we are thrilled to continue pushing boundaries together towards a sustainable future.”

Nassim Lagrou, student at RWTH Aachen University and the new team leader of Team Sonnenwagen, shares this enthusiasm: "We are incredibly proud that Covestro continues to be part of our journey. Over the years, they have proven to be so much more than a sponsor: they are a great partner who brings excellent material solutions and expertise to the table. Whenever we faced a challenge, Covestro was there. Not just with materials and expertise. But as people who really care and share our passion for the Sonnenwagen. It’s about winning together and sharing the same mission, passion and values. That means the world to us."

A successful partnership with a strong track record

The partnership between Covestro and Team Sonnenwagen can look back on an impressive track record of success: European Champions in 2022 at the iLumen European Solar Challenge in Zolder, winners of the Italian Solar Challenge in Imola, as well as additional podium finishes at the European Solar Challenge 2024. With their current solar car, “Covestro Æthon”, the team has continued this success, achieving a top result with fourth place at the World Solar Challenge 2025¹ , including a new team record in qualifying.

More than ten different Covestro materials are used in Æthon. Highlights include the more sustainable, mass-balanced Vulkollan^®, which cushions impacts between the battery and the body, as well as Makrolon^® TC, a thermally conductive polycarbonate used for battery temperature regulation.

This is complemented by a resource-efficient coating that cures at room temperature, along with a seat made from chemically recycled automotive seat foam, combining comfort with sustainability. Additional materials are used in components such as the cockpit canopy, outer shell, headlights, seat, and steering wheel.

For the newly formed Team Sonnenwagen, the next highlight is already on the horizon this year: on September 19 and 20, the team will compete in the European Solar Challenge in Zolder, Belgium, aiming once again for a podium finish. Construction of the new Sonnenwagen will begin in the autumn. With this new car, the team will line up at the World Solar Challenge in Australia in 2027, with the clear goal of competing for victory once again.

_{¹ The World Solar Challenge is an international race for solar-powered cars. It runs 3,000 kilometers from Darwin to Adelaide through the Australian outback. It is considered the world’s toughest competition for solar mobility, in which teams from universities around the world compete against one another.} 

Following Covestro’s acquisition of Pontacol, selected thermoplastic adhesive film products will be showcased at the Covestro booth. Fully integrated into the Covestro portfolio, Pontacol^® solutions expand the company’s range of adhesive and functional film offerings for customers across key markets.

Textile Coatings

The Covestro Textile Coatings team will present waterborne, partially bio-based, and mass-balanced polyurethane (PU) technologies for technically demanding coated textile applications. Exhibits include an automotive door panel design for a concept car, developed jointly with Marquardt Group and E Ink, that integrates a responsive color-changing e-paper display behind a see-through PU-coated synthetic surface. Based on waterborne INSQIN^® PU technology from Covestro, the transparent coated film enables vivid display visibility while meeting the performance and haptic requirements of automotive interiors.

The team will also demonstrate how antimicrobial PU-coated textiles, combining INSQIN^® with AGXX technology from Heraeus Precious Metals, can deliver enhanced hygiene and durability in high-contact applications.

Specialty Films

The Covestro Specialty Films team is presenting its high-performance thermoplastic polyurethane (TPU) film portfolio, specifically engineered to meet demanding technical requirements across diverse industries. Dureflex^® and Platilon^® TPU films deliver exceptional flexibility, durability, and consistent performance in applications ranging from automotive interiors to high-stress sports equipment and innovative cured-in-place pipe (CIPP) systems that enable pipe repair without disruptive excavation.

At the exhibition, visitors can experience smart technology concepts where Covestro's TPU films serve as substrates for flexible printed electronics in protective apparel. The advanced Platilon^® TPU films enable integrated electroluminescent features that significantly enhance visibility and safety in low-light conditions. This concept illustrates Covestro’s commitment to innovation and functional, high-performance solutions.

Thermoplastic Polyurethanes (TPU)

The TPU team will present Desmopan^® AIR, a durable, versatile, and easy-to-recycle material for cushioning applications. Desmopan^® AIR technology introduces a new class of customized TPU-based cushioning solutions. As it can be recycled through simple thermo-mechanical processing, it helps manufacturers develop high-quality cushioning products with improved sustainability. TPU-based cushioning structures can also be combined with other TPU applications, such as TPU nonwoven materials, enabling monomaterial designs.

In addition, the team will present Desmopan^® FLY, an ultra-flexible, low-viscosity TPU solution engineered for Supercritical fluid (SCF) foam injection molding. It enables the production of thin, durable, and highly flexible films and textile applications, combining outstanding wear resistance with reduced material weight.

A shared focus on enabling the textile industry

The company’s presence at Techtextil 2026 emphasizes how raw material innovation can help textile manufacturers meet evolving regulatory, environmental, and market demands, while maintaining efficient production and high product performance.

“We look forward to presenting our material solutions at Techtextil and demonstrating how they can translate into practical progress for the textile industry,” said Dr. Torsten Pohl, Head of Global Textile Coatings at Covestro. “Together with our partners and customers, we will continue to explore applications that support more sustainable products and more efficient manufacturing.”

Techtextil will be held at Messe Frankfurt from April 21–24, 2026. Attendees can find Covestro in Hall 11.0, Booth C79.

Additional information on Covestro’s presence at the Techtextil can be found here.

XRG has informed Covestro AG that it holds a 95.1% stake in the share capital of Covestro AG (before deduction of Covestro AG’s treasury shares) directly and through its wholly-owned indirect subsidiary ADNOC International Germany Holding AG. It is thus the majority shareholder within the meaning of Section 327a para. 1 sentence 1 of the German Stock Corporation Act. 

XRG has further announced that it has set the cash compensation for the transfer of the shares held by the minority shareholders of Covestro AG at EUR 59.46 per share of Covestro AG. The determined cash compensation is based on an expert opinion issued by PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft, Frankfurt am Main. 

The squeeze-out under stock corporation law will not take effect until the transfer resolution is entered in the commercial register of Covestro AG. Covestro AG plans to submit the resolution on the squeeze-out under German stock corporation law for approval at its ordinary general meeting, which is expected to be held on 19 May 2026. The convocation will be published separately.

"The contract with Fraunhofer UMSICHT is a decisive step towards industrializing our smart pyrolysis technology," said Dr. Markus Dugal, Head of Process Technology of Covestro. "This partnership combines our chemical and technology expertise with Fraunhofer's process engineering capabilities and assets to scale a technology that is able to prove chemical recyclability of end-of-life Polyurethane materials and that could fundamentally change how we source raw materials for MDI production. By recovering high-value molecules from waste streams, we're turning the circular economy from vision into reality while significantly reducing the carbon footprint of our products."

Under the agreement, Fraunhofer UMSICHT will draw on its pyrolysis research expertise and existing chemical recycling infrastructure to implement and scale up Covestro's proprietary smart pyrolysis process. The pilot plant has an annual capacity to recycle 2kt of end-of-life foam per year. The resulting amount of aniline could be used to produce insulation for roughly 200,000 refrigerators² . The new plant is scheduled to begin operations in mid-2028 and will process rigid PUR/PIR foam waste primarily from end-of-life insulation PU materials. The technology specifically targets rigid foam because it is notoriously difficult to recycle due to its crosslinked molecular structure.

Moving towards industrial implementation

"This project represents the culmination of several years of intensive joint research," explains Prof. Dr.-Ing. Manfred Renner, Head of Institute Fraunhofer UMSICHT. “It’s perfectly in line with Fraunhofer’s mission to bridge the gap between research and application: we are not just demonstrating technical feasibility but actively moving towards industrial implementation.” Dr. Alexander Hofmann, Head of Thermochemical Conversion Technologies at Fraunhofer UMSICHT adds: "The project is underpinned by our own research and technology developments in chemical recycling and downstream processing. The pilot plant will allow us to optimize process parameters at scale and provide sufficient material for further processing tests and market development."

The smart pyrolysis process yields aniline with approximately 99 percent purity, suitable for producing recycled MDI that meets the same quality standards as conventional MDI.

Rigid foam market in need of closed-loop solutions

This development is particularly important as the MDI market for rigid foam is projected to grow from 1400 kt in 2025 to 1900kt in 2035 in Europe alone, driven by increasing demand for energy-efficient insulation in buildings and refrigeration. EU regulations and market requirements, for example, increasingly request scalable end-of-life solutions for PUR/PIR rigid foam, posing a significant challenge for the industry. The chemical recycling technology developed by Covestro and Fraunhofer UMSICHT offers a viable path forward by breaking molecular bonds to recover valuable raw materials that would otherwise be lost.

The technological development builds on extensive research within CIRCULAR FOAM, an EU-funded flagship project coordinated by Covestro with Fraunhofer UMSICHT and 23 other partners across Europe. After successful laboratory and mini-plant scale demonstrations, the smart pyrolysis pilot plant represents the critical next step toward commercial implementation.

For more info visit the Covestro Solutions Center

_{¹ The carbon footprint was calculated for the recycled aniline produced by the smart pyrolysis process without using any credits for avoided incineration. With this value the CO₂ emission for MDI was calculated for the standard production process of Covestro.
² Assuming ~8kg of PUR insulation per refrigerator}

Group sales decreased by 8.7 percent to EUR 12.9 billion in the 2025 fiscal year (previous year: EUR 14.2 billion). This development was primarily driven by lower selling prices in all regions as well as exchange rate effects. At EUR 740 million (previous year: EUR 1.1 billion), EBITDA was within the range of EUR 700 million to EUR 800 million specified in October 2025. The production downtime at several plants following a fire at the Dormagen Chempark had a negative impact on the full year in the low three-digit million euro range. Free Operating Cash Flow amounted to EUR –283 million (previous year: EUR 89 million), which was also within the expected range. The Group net result was EUR –644 million (previous year: EUR –266 million), reflecting the ongoing challenging market conditions. Greenhouse gas emissions (Scope 1 and Scope 2) fell to 4.3 million metric tons of CO2 equivalents (previous year: 4.7 million metric tons). This was primarily due to the successful implementation of the Nitric Acid Unit Climate Initiative projects at the Baytown (USA) and Shanghai (China) sites.

“The year 2025 was once again characterized by geopolitical uncertainties and a globally challenging market environment,” says Dr. Markus Steilemann, CEO of Covestro. “Our ambition remains unchanged: With our innovative strength, technological excellence, and our clearly focused ‘Sustainable Future’ strategy, we are consistently evolving Covestro together with our customers. 2025 was therefore also a year of important strategic decisions. With XRG as a long-term strategic partner, additional opportunities are opening up to further expand our position as a leading provider of sustainable and circular material solutions.”

Targeted investments and efficiency increases

In 2025, Covestro made targeted investments in growth and enhanced its organizational efficency. Despite the continuing challenging environment, Covestro made strategic acquisitions to further strengthen its portfolio in attractive growth markets. With the acquisition of Pontacol AG, completed in August 2025, Covestro is expanding its film business to include highly specialized multilayer adhesive films, which open up new opportunities in areas such as medical technology, mobility, and the textile industry.

Furthermore, in August 2025, Covestro signed an agreement with Vencorex to acquire two production sites for HDI derivatives in Rayong (Thailand) and Freeport, Texas (USA). This transaction, which is expected to close in the first half of 2026 if possible, strengthens the production network for aliphatic isocyanates and supports the growth strategy in the Coatings & Adhesives business entity.

At the same time, Covestro is making continuous progress with its STRONG transformation program launched in 2024. As of the end of 2025, the company has already saved approximately EUR 275 million, consistently implementing the announced efficiency increases. The goal is to achieve annual savings of EUR 400 million worldwide by the end of 2028. The focus is on the consistent continuation of the transformation, structural and process improvements, as well as extensive digitalization and the use of artificial intelligence across all areas of the company.

“The market environment remained challenging in 2025. The sustained pressure on prices and margins, as well as a lack of demand momentum, weighed significantly on our business,” says Christian Baier, CFO of Covestro. “What is decisive, however, is that we are adjusting our cost structures, simplifying processes, and prioritizing our investments. These measures are proving effective. The successful capital increase creates additional financial flexibility. This shows that even in a volatile market environment, we are actively shaping our transformation.”

Strategic partnership with XRG successfully completed

A key milestone in the 2025 fiscal year was the successful completion of the strategic partnership between Covestro and XRG on December 10, 2025. With XRG as a long-term oriented shareholder, Covestro will further accelerate its transformation. In this context, the EUR 1.17 billion capital increase agreed upon in the investment agreement with XRG was completed in December 2025. The transaction strengthens Covestro’s equity base and increases financial flexibility in a volatile market environment.

XRG has also announced its intention to pursue a squeeze-out under stock corporation law following a corresponding resolution at this year’s Annual General Meeting of Covestro AG. In accordance with the investment agreement concluded between the parties, the Board of Management and the Supervisory Board fundamentally support this plan. This step would simplify the ownership structure and reduce capital market regulatory requirements. The resulting strategic and financial flexibility will allow Covestro to advance its “Sustainable Future” strategy over the long term and drive sustained investment in growth areas like the circular economy, digitalization, and AI.

Outlook 2026

For the 2026 fiscal year, Covestro continues to expect a demanding market environment. A sustainable recovery in global demand is currently not in sight, while the global competitive environment remains characterized by overcapacities, persistent price pressure, and an increasingly protectionist trade policy.

Against this background, the forecast for EBITDA, Free Operating Cash Flow, and ROCE above WACC is provided in the form of a qualitative assessment rather than quantitative ranges. For 2026, Covestro expects EBITDA to be in the region of the previous year’s level*. For Free Operating Cash Flow and ROCE above WACC, the company anticipates a significant improvement compared to 2025 levels. For greenhouse gas emissions (Scope 1+2) measured in CO2 equivalents, the Group expects a value between 3.9 and 4.5 million metric tons.

Due to the negative Group net result and in line with Covestro’s dividend policy, no dividend will be distributed for the 2025 fiscal year.

Development of the Segments

In the Performance Materials segment, sales decreased by 12.1 percent to EUR 6.1 billion (previous year: EUR 7.0 billion). EBITDA fell by 34.1 percent to EUR 375 million (previous year: EUR 569 million), due to lower margins and higher expenses for the implementation of the STRONG transformation program. The latter primarily related to the closure of the production facility in Maasvlakte (Netherlands) operated jointly with LyondellBasell.

In the Solutions & Specialties segment, sales decreased by 5.5 percent to EUR 6.6 billion (previous year: EUR 7.0 billion), due to lower selling prices and negative exchange rate effects. EBITDA decreased by 8.0 percent to EUR 681 million (previous year: EUR 740 million). Increased sales volumes and lower expenses within the framework of the STRONG transformation program had a positive impact on earnings.

_{*This may include a deviation in the single-digit percentage range.}

_____________________________________________________________________________________________________________

Notes to editors:

The table at the side column provides key figures for Covestro AG for the 2025 fiscal year.

The presentation for the annual press conference can be found in the digital press kit from 7.00 a.m. CET at: Covestro Press

The 2025 Annual Report is available here.

• Find here the presentation of the Covestro Annual Press Conference 2025. 

Images and key financial figures

Recording of the press conference

Annual Report 2025

The results of our fiscal year 2025, stories behind the numbers and further information about Covestro can be found here.

Covestro at a Glance

Are you looking for more information? Find more facts about Covestro here.

The so-called People Mover, which will be tested on public roads this year at speeds of up to 50 km/h, is the result of a project funded by the Federal Ministry for Economic Affairs and Energy (BMWE) and the European Union.

"The People Mover is more than just a vehicle – it's a showcase for the future of mobility," explains Jochen Hardt, Head of Global Marketing Mobility at Covestro. “It also vividly demonstrates the 'Material Effect,' for example in the 381cm large windshield made of polycarbonate. Additionally, we considered recycling during the design process and worked with three fully recyclable monomaterials Arfinio^®, TPU and Polycarbonate that can be found either in interior or exterior.”

Material Effects for the Major Trends in Mobility

The materials used in the People Mover demonstrate Covestro's Material Effects and include, for example, Makrolon^® AG for the 381cm panoramic glazing. Covestro can offer this innovative polycarbonate solution based on mass-balanced raw materials from post-consumer waste.

For the autonomous driving systems, opaque but sensor-transparent Makrolon^® AX ST is used for multi-sensor system covers. This innovative solution enables seamless and invisible integration of sensor technology while providing resistance to vandalism and stone impacts.

In the interior, the lightweight, high-quality, and fully recyclable monomaterial Arfinio^® is used in a vehicle for the first time. The material combines a stone-like appearance and feel with high resistance to mechanical stress, UV radiation, and wear.

A consistent monomaterial approach with recycling in mind was also pursued for the seat upholstery. Printed TPU-based solutions made of Desmopan^® AIR provide high seating comfort combined with high abrasion resistance and easy cleaning – a crucial factor for vehicles in continuous public transit operation.

Monomaterials Facilitate Recycling

The use of monomaterials also facilitates recycling at the end of the lifecycle and supports SUE's claim to consider sustainability not only in the propulsion system but throughout the entire vehicle architecture.

"With SUE, we pursued a user- and design-centered approach from the beginning," says Alexander Uedelhoven, founder and project manager of SUE and authorized signatory at UE | STUDIOS. "We wanted to develop not just a technologically advanced vehicle, but one optimally aligned with passenger needs in terms of service, information, ergonomics, and aesthetics. The materials and extensive technical expertise from Covestro gave us the freedom to implement this vision without compromises."

The project was realized in collaboration with renowned partners, including the Institute for Automotive Engineering of the Lower Saxony Research Centre for Automotive Technology (NFF), TÜV Nord, the Fraunhofer Institute EMFT, and Deutsche Bahn (DB Regio).

As initiator, project manager and vehicle manufacturer, UE | STUDIOS are responsible for the overall concept, complete development, design and production of the SUE People Mover.

The shares of Covestro AG (WKN 606214 / ISIN DE0006062144) are currently admitted to trading on the regulated market of the Frankfurt Stock Exchange and to the sub-segment of the regulated market with additional post-admission obligations (Prime Standard).

The Board of Management of Covestro AG today decided to apply for the revocation of the shares' admission to the Prime Standard and to switch to the General Standard. The change of stock market segment serves to reduce the additional expenses associated with listing in the Prime Standard.

The revocation of admission will take effect three months after the publication of the revocation decision by the management of the Frankfurt Stock Exchange on the Internet (www.deutsche-boerse.com). The revocation does not affect the admission of Covestro AG shares to the regulated market (General Standard).

The investment in this entirely new site, originally announced in 2023, marks a significant milestone in Covestro’s region-for-region strategy and its commitment to growth in its Solutions & Specialties business. The Zhuhai site will be developed in three phases across a 45,000-square-meter area, with maximum production capacity estimated to reach 120,000 tons a year upon completion of the final phase, expected in the 2030s. This will then make it the company’s largest TPU production facility globally.

“The inauguration of our Zhuhai site represents a pivotal moment in Covestro’s growth strategy. This investment demonstrates our commitment to meeting the evolving needs of our customers across Asia Pacific while strengthening our position in high-growth markets,” said Monique Buch, Chief Commercial Officer of Covestro. “The facility will enable us to deliver innovative TPU solutions closer to our customers, enhancing our service capabilities and responsiveness.”

Regional synergies with nearby R&D and AD capacities

The Zhuhai site will be strategically supported by a regional TPU R&D Center in Changhua and a new TPU application development (AD) center in nearby Guangzhou, which integrate technical acumen with innovative solutions and tailored services. Together, these facilities are expected to generate powerful regional synergies through collaborative and complementary strengths, positioning Covestro optimally to serve its customers throughout the region.

“The site as well as the nearby R&D and AD capacities are state-of-the-art. Our site in Zhuhai furthermore significantly expands our global TPU production network and reinforces our strong market position in TPU in the region,” said Dr. Andrea Maier-Richter, Head of TPU at Covestro. “With our integrated regional setup combining production, fundamental research and customer-focused application development, we’re well-positioned to drive innovation and deliver tailored solutions that meet the specific requirements of diverse industries located in south China, like automotive, consumer electronics to footwear.”

“The Zhuhai site underscores Covestro’s long-term commitment to China and aligns with the country’s high-quality development and sustainability agenda. This investment further establishes Guangdong, with a particular focus on the Greater Bay Area, as Covestro’s strategic hub in China along with Shanghai, enabling us to deliver innovative solutions locally while supporting customers throughout Asia. We’re proud to contribute to China’s industry transformation and development as a reliable partner,” said Covestro China President Holly Lei.

The Zhuhai site is capable of producing TPU with the label “CQ”. Covestro materials with this designation contain at least 25 percent alternative, non-fossil raw materials, supporting customers in reducing their carbon footprint in final products, especially important in sectors such as electronics where sustainability has become a global trend.

For Schleswig-Holstein, the project represents an important step on the path to climate-neutral transformation of the state. This was emphasized by Tobias Goldschmidt, Minister for Energy Transition, Climate Protection, Environment and Nature of the state, at the groundbreaking ceremony: “The energy transition is Schleswig-Holstein's project of our time. The rapid expansion of renewable energies is a booster for our business location Schleswig-Holstein and makes future-oriented projects like the heat battery possible in the first place. Covestro and Rondo impressively demonstrate how they are driving the energy transition forward with innovative strength, technological know-how, and full confidence. Projects like this contribute significantly to energy sovereignty and to achieving our climate neutrality goals.”

The 100 MWh Rondo Heat Battery (RHB) is scheduled to go into operation by the end of 2026. Breakthrough Energy Catalyst and the European Investment Bank (EIB) are supporting the project. The battery will produce ten percent of the required steam at the site, saving up to 13,000 tons of CO₂ emissions per year.

"As an innovation company, we are always excited when we can further develop and test promising ideas that can bring us closer to our goals of a circular economy and climate-neutral production," says Dr. Thorsten Dreier, CTO of Covestro. "The heat battery is such an idea: a new technology that enables us to take another step forward on our path to a sustainable future."

The Rondo Heat Battery combines centuries-old materials with modern automation: electrical energy is stored in the form of heat – with the help of bricks that have been used as heat storage in steel mills for centuries. The heat drives an ordinary boiler that delivers emission-free steam. With electricity from renewable energy sources, a constant amount of steam can thus be continuously generated.

“This project shows how two of Europe’s central challenges can be solved together,” said Eric Trusiewicz, CEO of Rondo Energy. “As renewable power expands, it increasingly creates daily periods of abundant, low-cost electricity. At the same time, European industry needs reliable, affordable energy to remain competitive. Together with Covestro, we are demonstrating that clean industrial heat can be both highly reliable and a powerful tool for balancing the grid — while building the energy infrastructure needed to strengthen Europe’s industrial base and energy security.”

For Covestro, steam generation is an essential part of the production process and accounts for a large portion of energy consumption. The steam at the Brunsbüttel site is currently still generated with natural gas. Based on the experience with using the Rondo Heat Battery in Brunsbüttel, Covestro is evaluating whether deployment on a larger scale is possible.

Read more here ›

XRG P.J.S.C., together with its indirect wholly owned subsidiary, ADNOC International Germany Holding AG, holds approx. 95.10% of the share capital of Covestro AG and is thus the majority shareholder in the meaning of sec. 327a para. 1 sent. 1 AktG. 

The time at which the squeeze-out under stock corporation law takes effect depends, amongst other things, on the approving resolution of Covestro AG's general meeting and the registration of the transfer resolution with the commercial register. The amount of the appropriate cash compensation that the main shareholder will grant to the minority shareholders of Covestro AG for the transfer of shares has not yet been determined and will be announced at a later date.

For BLUETTI, the main challenge lies in ensuring that the device's housing lasts as long as its internal components. With more than 4,000 charging cycles – about 10 years of use – BLUETTI's LiFePO4 battery requires a housing that withstands aging, brittleness, and wear, even under extreme temperatures and UV exposure. Safety is equally crucial, as the material must tolerate heat during operation without fire risk. Beyond these high material requirements, BLUETTI is strongly interested in reducing the CO₂ footprint of its products, which is why the material must also meet this requirement.

Covestro's Bayblend^® polycarbonate meets both requirements: It offers high impact resistance even at low temperatures and complies with UL 94 V-0 flame retardant standards for safe operation. The Bayblend^® RE grade used in the Elite 100 V2 power station is also manufactured with renewable ingredients attributed through mass balance accounting from biological waste and residues, while meeting high performance requirements. The material is part of Covestro's CQ (Circular Intelligence) product portfolio, which marks products related to at least 25 percent alternative raw materials.

"This collaboration with BLUETTI demonstrates how innovative materials can accelerate the transition to more sustainable solutions for the rapidly growing portable power market," said Lily Wang, Global President of Engineering Plastics at Covestro. "Our engineering plastics designed for the circular economy not only deliver the technical performance required for demanding outdoor applications, but also help our customers reduce their environmental footprint while advancing the circular economy."

Allen Huang, Vice President of BLUETTI, added: "Our partnership with Covestro is based on a shared vision for a greener planet. By using their advanced bio-circular attributed materials, we enhance the durability and safety of our products while actively reducing our environmental impact. This collaboration enables us to offer reliable, stylish, and sustainable energy solutions that empower our users to live better lives."

Beyond technical performance, Bayblend^® enables refined surface textures and diverse color options through Covestro's advanced CMF (Color, Material and Finish) capabilities. This design flexibility allows BLUETTI to meet evolving consumer preferences for more expressive, aesthetically appealing products without compromising performance standards.

The Elite 100 V2 will be launched on January 7 afternoon at BLUETTI’s CES booth #9837 in the North Hall of the Las Vegas Convention Center and be available globally.

¹ The CO₂ footprint reduction is based on a certified life cycle assessment of the housing component comparing Bayblend^® RE to conventional polycarbonate. The bio-circular content is tracked and correspondingly attributed through certified mass balance methodology.

Recognition of Dr. Richard Pott's Outstanding Contributions

Dr. Richard Pott has played a pivotal role in shaping Covestro as Chairman of the Supervisory Board since the company's founding in 2015. During his more than ten-year tenure, he guided the company through critical development phases – from the separation from Bayer and the successful IPO to the recent strategic realignment with partner XRG.

Dr. Richard Pott said: “It has been an honor to support Covestro on its journey and help shape the development of this exceptional company. I am convinced that the strategic partnership with XRG positions Covestro excellently for the future. I also wish my successor Dr. Rainer Seele all the best in his endeavours in guiding the company into its next phase of development.”

Dr. Rainer Seele Brings International Expertise

Dr. Rainer Seele is a senior leader with deep industry expertise and global experience across the international energy and chemicals sector. Since 2025, he has led XRG’s global chemicals business as President and played a central role in the development of the strategic partnership with Covestro. Previously, he served as CEO of OMV AG from 2015 to 2021 and held senior leadership roles at companies including Wintershall, where he helped shape their long-term direction. Dr. Seele holds a PhD in Chemistry.

Dr. Rainer Seele said: “I am very much looking forward to my role as Chairman of the Supervisory Board of Covestro. The company combines outstanding technological expertise with a highly skilled workforce, and a clear strategic focus on sustainability and the circular economy. Together with the Management Board under the leadership of Dr. Markus Steilemann and as part of the XRG family, we will continue to advance Covestro's transformation, drive long-term value creation and unlock its full potential. I would also like to thank Dr. Richard Pott for his outstanding contribution and for leading a successful transition.”

Until his departure, Baier will continue to perform his duties as Chief Financial Officer in full and with the same high level of commitment. He has been a member of the Board of Management since October 2023 and is responsible for Accounting, Controlling, and Finance, and other areas.

Dr. Richard Pott, Chairman of the Supervisory Board, said: “We thank Christian Baier for his outstanding commitment over the past years. He played a key role in guiding Covestro through an important phase in its history, securing the strategic partnership with XRG and initiating the company’s transformation. We respect his decision and are grateful for the early notice, which allows us to begin an orderly succession process. I am pleased that he will continue to fully support the ongoing transformation in the year ahead.”

Dr. Markus Steilemann, CEO of Covestro, said: “I would like to express my sincere gratitude to Christian Baier for his dedicated work and the excellent cooperation. He joined Covestro during a period of change and has been instrumental in advancing our ‘Sustainable Future’ strategy. Not least, he played an important role in the negotiations and conclusion of the strategic partnership with XRG. Together with XRG, Covestro is now excellently positioned for a successful future.”

Christian Baier said: “I am grateful for what we have achieved together at Covestro in recent years. With the strategic partnership with XRG, the capital increase, and the implementation phase of the company’s transformation, Covestro is well positioned for long-term and sustainable growth.”

This is important because the conventional vehicle part coating process typically involves multiple steps, each of which adds cost, uses energy, and limits design freedom. Direct Coating from Covestro transfers the molded part to a second cavity and applies a low viscosity 2K PU that cures in the mold. This integrated process requires no conventional coating- or painting lines, accelerates cycle times, streamlines operations, and enables more flexible, scalable production of a range of coating designs, including those featuring haptics and visual effects.

“With a broad network of partners across the entire value chain, we are well-positioned to support the global rollout of Direct Coating,” said Benjamin Herzberg, Technology Expert IMC at Covestro. “We have over two decades of proven experience in the Direct Coating process, with a strong focus on joint projects across the automotive industry. Our application and scale-up expertise is anchored across technical centers worldwide and backed by a strong IP portfolio. Our latest customer support enhancement is a tool that compares cost and CO₂ emissions with the conventional manufacturing process.”

End-to-end solutions and support

Covestro also offers tailored polycarbonate substrates such as Makrolon^® IMC2477. This solution delivers excellent adhesion to polyurethane coatings while maintaining good optical properties in both transparent and colored opaque finishes. Additionally, Covestro has designed dedicated polyurethane coating raw materials for Direct Coating applications. These materials include fast-curing, low-viscosity polyisocyanates and polyols suitable for these applications.

“Customers can accelerate their time-to-market by benefiting from guidance on mold design and process optimization, as well as using our facilities to trial designs and validate parts and production conditions,” added Thomas Baeker, Marketing Manager for Industrial and Automotive Coatings at Covestro.

Since 2021, a leading German automotive manufacturer has used Covestro products for Direct Coating components in both exterior and interior vehicle applications.

More information
Tier suppliers and OEMs interested in evaluating Direct Coating can find out more by visiting the Covestro website.

Additionally, our technical experts can also provide suppliers and OEMs with a bespoke cost calculation tool and access to Covestro technical labs.

Dr. Markus Steilemann, CEO of Covestro, said: “With today’s closing of the transaction, we can now begin our joint journey with XRG. Together with XRG as a strong and long-term partner, we are well positioned to drive Covestro’s transformation and create long-term value for our customers, employees, and stakeholders worldwide.”

The closing of the transaction marks the official start of the partnership, building on all underlying agreements and prior regulatory clearances.

Further information on the transaction can be found on the deal website at: www.covestro-offer.com

The collaboration seeks to develop a circular economy model for medical devices by proving both technical feasibility and economic viability while navigating the complex regulatory landscape of medical waste management. In cooperation with additional partners in the United Kingdom – including Allmed’s distribution partner Kimal, a leading regional hospital trust and a specialized recycler – Allmed and Covestro are now preparing for their first recycling trials.

“The circular economy in healthcare is still emerging – but it holds tremendous potential. With this feasibility study, we want to demonstrate that even complex applications like artificial kidney filters can be circular and become a valuable source of high-quality polycarbonate recyclate instead of being incinerated or sent to landfill,” says Lily Wang, Global Head of Engineering Plastics at Covestro.

Allmed is equally committed to ambitious sustainability goals: “Blood purification devices are essential for life-saving treatments but also require significant resources. Our ambition is to show that high medical performance and ecological responsibility can go hand in hand,” explains Ahmed Sorour, Chief Executive Officer at Allmed.

Matt Press, Chief Executive Officer of Kimal Group added: "We are very proud that Allmed had chosen Kimal and the UK market to be at the forefront of this fantastic and groundbreaking initiative".

About Allmed:
Allmed is a leading innovator and supplier of groundbreaking blood purification devices. It encompasses the widest portfolio of such devices globally, from neonatal care up to the largest blood filters on the market. It is headquartered in the UK, with key technology centers in Germany, and exports its devices and technologies to over 40 countries worldwide. Allmed is committed to showcasing to the world that even life-saving medical devices can enter and exit the supply chain sustainably.

Find more information at Allmed – Delivering world class Dialysis Treatment
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“This is an exciting new chapter for Covestro,” said Dr. Markus Steilemann, CEO of Covestro. “With XRG as a strong and long-term-oriented partner, we will drive innovation and digital transformation, scale circular solutions, and set new standards in the chemical industry. Together, we are well-positioned to take our ‘Sustainable Future’ strategy to the next level. Our partnership reflects not only shared goals and ambitions for a successful future and a new chemical era, but also mutual benefits and opportunities for both Covestro and XRG as well as for our customers, suppliers, employees and all other stakeholders.” 

Dr. Rainer Seele, President of Global Chemicals at XRG, said: “Securing these regulatory clearances allows us to move forward and focus on establishing a long-term, stable partnership with Covestro. This acquisition strengthens XRG’s international footprint in chemicals and supports our ambition to become a top three global investor in the sector. We have deep respect for Covestro’s people and expertise, and we look forward to working closely with its management team to realize the company’s full potential.” 

Supporting Covestro’s ‘Sustainable Future’ Strategy 

The partnership is built on a shared commitment to addressing powerful megatrends and shaping industries and societies worldwide. By combining XRG’s strength and global reach with Covestro’s expertise in advanced technologies and circular solutions, the two companies aim to unlock opportunities and deliver long-term value for all stakeholders. Upon closing, Covestro’s ongoing transformation will be further supported by a EUR 1.17 billion capital increase, which will enable the timely execution of strategic investment plans and further execution of its ‘Sustainable Future’ strategy. 

With XRG as long-term oriented shareholder, Covestro will continue its journey focusing on scaling its circular economy ambitions, driving digital transformation through advanced technologies such as AI and quantum computing, and strengthening its activities in high-growth sectors like mobility, construction, and electronics. XRG’s expertise in energy transition will complement Covestro’s sustainability goals, providing access to cleaner energy solutions and enhancing resilience in a rapidly changing global landscape. 

A Strong Foundation for Long-Term Growth and Continuity 

Key elements of the agreed strategic partnership include, inter alia, that Covestro, a global leader in high-quality polymer materials, will act as the foundational platform for XRG’s Performance Materials and Specialty Chemicals business. In accordance with the terms of the Investment Agreement, Covestro will retain its autonomy, with its Board of Management, led by CEO Dr. Markus Steilemann, continuing to oversee operational management and strategic direction. XRG will collaborate with Covestro’s management to identify further opportunities to enhance operational efficiency, strengthen resilience and capture long-term value as the company enters this next phase. Also, in accordance with the terms of the Investment Agreement, upon closing, Covestro maintains its corporate structure, German corporate governance standards and existing general works agreements along with its registered headquarters in Leverkusen.

Advancing document integrity with polymeric innovation

Following the successful launch of Certevo^® in 2024, Covestro now demonstrates how the material is being integrated into real-world security printing applications including certificates, diplomas, vehicle registration papers, and fiscal documents. Engineered for high-security substrates, Certevo^® combines reliable print performance and precise laser engravability in a fully recyclable, single-polymer design—helping document producers enhance security while supporting circularity in material use.

“Certevo^® is already proving its value beyond the lab,” says Daniel Hentschel, Global Segment Manager for ID & Security Printing Specialty Films at Covestro. “It tackles two core challenges at once: enhancing document security through excellent offset intaglio printing tactility, and laser personalization, while advancing recyclability and circular design. Its outstanding durability and print receptivity extend document lifespan and help conserve valuable resources across the entire value chain.”

Enhancing passport security with laser-personalized TPU covers

Covestro’s new laser personalization concept for passport covers, made from thermoplastic polyurethane (TPU), enables document manufacturers and personalization hubs to customize covers using standard laser-engraving systems. This innovation transforms the cover into an active security feature, enhancing each document’s protection and uniqueness. The process can also produce tactile Braille markings, reflecting Covestro’s commitment to both authenticity and accessibility in passport design.

Decentralized color personalization for secure and flexible issuance

Addressing a key industry challenge, Covestro’s Secure Color Personalization technology enables decentralized, color portrait personalization without compromising security. The process combines digital printing and laser personalization with specialized polycarbonate overlay film to structurally integrate portraits into ID documents. This three-step "tattooing" technique creates tamper-evident documents with unique tactile patterns, while supporting faster local issuance and greater system resilience.

"This technology delivers the security benefits of centralized production with the flexibility of decentralized personalization," emphasizes by Daniel Hentschel, "The result is more secure, citizen-friendly document issuance that sets a new standard for ID systems worldwide."

Covestro will showcase its latest materials portfolio for identity and currency applications at TRUSTECH 2025 during December 2–4 at Paris Expo – Porte de Versailles, Pavilion 5.2, stand C055. Visitors can also attend an Expert Innovation Talk by Georgios Tziovaras, our Global Application Development Manager, on “Secure Color Personalization of Polycarbonate (PC) Documents.”.

Covestro is responding to these conditions with cost discipline and efficiency, while at the same time pursuing opportunities for further targeted growth. The STRONG transformation programme launched in 2024 is already showing significant progress: with total savings of around EUR 320 million realised by the end of 2025, Covestro is well on track to achieve its target of EUR 400 million annually by 2028. Around EUR 250 million of this will be achieved in 2025. In addition, the company continues to focus consistently on strategic investments to achieve sustainable growth in attractive market segments and further strengthen its competitiveness. 

“The third quarter has once again shown how challenging the environment remains for our industry,” said Dr. Markus Steilemann, CEO of Covestro. “We continue to feel high price pressure and subdued demand worldwide – which is precisely why it is crucial to continue to act decisively. Our measures are taking effect, and we are strengthening our position in attractive growth markets with targeted investments. We have a clear strategy and are managing our business with discipline, customer focus, and strong team spirit. At the same time, we are continuing to develop Covestro in a targeted manner: towards a company that is even more resilient, responds even faster and creates long-term value for all stakeholders.” 

Full-year forecast for 2025 narrowed 

As is customary at the end of the year, Covestro has narrowed its forecast within the ranges it had previously issued. The company expects EBITDA for the full year 2025 to be between EUR 700 million and EUR 800 million, with the fire in Dormagen having a negative impact on the full year in the low three-digit million euro range (previously: EUR 700mn to EUR 1.1bn). Covestro expects free operating cash flow to be between EUR –400 million and EUR –200 million (previously: EUR –400mn to EUR +100mn). The return on capital employed above the weighted average cost of capital (ROCE above WACC) is expected to be between –9 and –8 percentage points (previously: –9 pp to –5 pp). The Group expect greenhouse gas emissions (CO₂ equivalents) to be between 4.2 million and 4.4 million tonnes (previously: 4.2mn to 4.8mn t). 

“In the current market environment, we are steering Covestro with a clear focus on costs, liquidity and efficiency,” says Christian Baier, Chief Financial Officer of Covestro. “We are taking decisive action to secure our financial stability while continuing to invest in areas that will strengthen our long-term competitiveness. The acquisition of Pontacol and the agreement with Vencorex are prime examples of this – but there is something more fundamental at stake: we are securing our financial and operational freedom to combine stability today with prospects for tomorrow.” 

Focus on sustainable growth 

With the acquisition of Pontacol AG, completed on 28 August 2025, Covestro has expanded its film business to include highly specialised flat and blown films. The two acquired production sites in Switzerland and Germany, with their extensive expertise open up additional opportunities for innovation and growth, particularly in the fields of medical technology, mobility and the textile industry. 

In addition, Covestro signed an agreement with Vencorex Holding SAS in August 2025 to acquire two production companies for HDI derivatives in Rayong (Thailand), and Freeport, Texas (USA). This strengthens the company's production network for aliphatic isocyanates and consistently pursues its long-term growth strategy in the Coatings & Adhesives business unit. Covestro is also consolidating its market position in the Asia-Pacific and North America regions. 

Ten years of Covestro and innovative ideas at K 2025 

In the third quarter, Covestro celebrated its tenth anniversary – a milestone that marks the company’s transformation into a global leader in innovation, sustainability and the circular economy in the chemical industry. The anniversary was not only a moment for reflection, but also for looking ahead: Over the past decade, Covestro has established itself as an innovation-driven, financially sound, and sustainability-oriented company that is purposefully advancing its global footprint. However, the main focus was on the shared attitude of the global team: this forms the basis for acting decisively and seizing new opportunities, even in persistently challenging market conditions. 

Covestro also sent a strong signal to the outside world in October at K 2025 in Düsseldorf. Under the motto ‘The Material Effect,’ the company presented more than 25 innovations that offer concrete solutions for key future topics such as the circular economy, climate neutrality, digitalisation and mobility. The strong response from customers and partners underscored Covestro’s role as a reliable, innovative solution provider and confirmed its focus on profitable and sustainable applications. This strengthens the company’s position in key industries and consistently implements its ‘Sustainable Future’ strategy. 

Overview of the segments 

In the Performance Materials segment, sales declined by 16.2 per cent to EUR 1.5 billion in the third quarter (previous year: EUR 1.8 billion), driven primarily by lower average selling prices, exchange rate movements and a decline in sales volumes. EBITDA rose to EUR 174 million (previous year: EUR 125 million), mainly due to positive one-off effects. Free operating cash flow amounted to EUR 68 million (previous year: EUR 111 million). 

In the Solutions & Specialties segment, sales declined by 7.7 per cent to EUR 1.6 billion (previous year: EUR 1.8 billion). This was also due in particular to the decline in average selling prices and exchange rate developments. Higher sales volumes had a positive effect. EBITDA amounted to EUR 196 million (previous year: EUR 208 million). Free operating cash flow amounted to EUR 116 million (previous year: EUR 101 million). 

Challenging market environment and global uncertainties characterise the first three quarters of 2025 

Group sales for the year to date amounted to EUR 10.0 billion (previous year: EUR 10.8 billion), due to the continuing challenging market environment, weak demand and intense competitive and price pressure in all regions. EBITDA amounted to EUR 649 million, consolidated net income to EUR –266 million and free operating cash flow to EUR –370 million. 

Latest info on Covestro’s K fair presence:

• Experience “The Material Effect” at K 2025 at Covestro | Covestro AG

Additional Press Releases:

• From Materials to Solutions: Covestro Brings "The Material Effect" to K 2025
• Digital Material Twins in Automotive Design: Imagio^® of Covestro Now Integrated into Autodesk VRED
• Covestro deepens collaboration with Ausell to advance end-of-life automotive plastics recycling
• More speed from design to series production
• From old tires to new car parts: Covestro, Neste and Borealis aim at closing loop for automotive industry 
• Covestro and Deloitte jointly develop Monetization Framework for Circular Economy
• Life Cycle Assessments digitalized: boosting transparency

Covestro at a Glance:

Are you looking for more information? Here you could find further facts about Covestro.

Monique Buch, Chief Commercial Officer at Covestro: "The chemical industry and many of its key customer industries face profound transformations – on the path to circular economy, through AI and digitalization, or due to geopolitics and the realignment of global markets. With our expertise in high-performance materials, process and application development, we remain part of the solution and support our customers in achieving their goals."

The solutions presented at "K" are organized across the booth in the areas of Automotive, Electronics, Healthcare, Sports and Leisure, as well as Sustainable Future. They showcase "The Material Effect" in application across various industries and underline the company's long-term vision of a complete alignment with the circular economy. This vision remains the North Star for Covestro and the industry – despite short-term challenges and overlapping crises that require resilience and adaptability.

Materials with Impact: "The Material Effect" in Practice

Jochen Hardt, Booth Manager and Vice President Global Marketing Mobility in the Engineering Plastics business entity at Covestro: "At our booth, visitors can experience first-hand how 'The Material Effect' becomes reality in concrete applications. We deliberately present not only materials and products but showcase well-designed system solutions that offer real added value to our customers. My team and I at Covestro look forward to engaging with visitors throughout the fair!"

Sustainable Future

In the "Sustainable Future" area, Covestro demonstrates its comprehensive commitment to the circular economy. This includes the "CQ" portfolio, which marks products containing at least 25% alternative raw materials. Another example is the technology developed by Covestro and partners for producing plant-based aniline. Also featured are several car-to-car recycling projects that advance circularity in the automotive industry. For example, the NALYSES project, where Covestro works together with partners like HELLA and BMW on the circularity of headlights. Or a pilot program with NIO, VW, and GIZ for recycling polycarbonate parts. For the latter, visitors will find materials labeled "RE", "RP", and "R" at the booth – these are partly made from alternative raw materials.

Automotive

Highlight in the automotive area: The SUE "People Mover" – a prototype vehicle for public transportation. The autonomous e-shuttle was designed and developed by UE | STUDIOS. It features large-scale, curved 3D polycarbonate glazing as well as seamless integration of driver assistance systems and sensors, also using polycarbonate. The lightweight, highly durable monomaterial Arfinio® is used in the interior, along with a recyclable TPU monomaterial seat. The IMAGIO® tool for digital, photorealistic material twins will also be on display. It is now implemented in Autodesk VRED and makes design processes faster and more efficient.

Electronics

In the electronics area, Covestro showcases innovative NIA-PFAS (not intentionally added PFAS) polycarbonates with flame retardancy for laptop covers and IoT device housings. Additionally, a recyclable antenna housing made of Makrolon® monomaterial will be on display, combining optimal signal transmission with weight reduction.

Healthcare

In the healthcare booth area, Covestro presents material solutions that combine sustainability with performance and reliability: From medication delivery with particularly thin-walled, more easily recyclable monomaterial injectors to resistant housings for diagnostic devices that withstand disinfectants. Such devices can furthermore be made with NIA-PFAS material types for flame retardancy, and support the seamless integration of functionality such as touch operation and signaling in an attractive design.

Sports and Leisure

In the sports and leisure area, visitors will find applications such as the e-surfboard by Awake. Covestro materials can be found, for example, in the easily and quickly replaceable battery, with thermally conductive and flame-retardant polycarbonate for improved battery performance. Durable TPU-based materials on the grip of the replaceable battery additionally provide pleasant haptics and comfort.

Press Tour for Media Representatives

Media representatives are cordially invited to experience Covestro's exhibition booth at K 2025 in person. A press tour will take place on the first day of the fair, October 8, 2025, at 3:00 p.m. at booth A75 in Hall 6.

The tour offers a comprehensive overview of all focus areas as well as the opportunity for discussions with technical experts about "The Material Effect" and the implementation of the circular economy strategy in concrete applications. There will also be opportunities for individual interviews.

For more information about Covestro at K 2025, please visit Experience “The Material Effect” at K 2025 at Covestro | Covestro AG

At the same time, according to the review process of the European Chemicals Agency (ECHA), conventional antimicrobial silver technologies face the challenge of meeting the requirements of the BPR due to concerns over potential harm to human, animal, and ecological health. Many are now set to be phased out in the years ahead.

To address the demand for more sustainable antimicrobial surface coatings, Heraeus Precious Metals created AGXX: a system that eliminates a wide range of bacteria, fungi, and viruses without releasing harmful silver-ion components. AGXX works due to a catalytic reaction of two precious metals that converts oxygen into reactive oxygen species (ROS) using moisture derived from air humidity. These ROS eliminate microbes by disrupting their outer cell membranes, organelles, and DNA.

Martin Danz, Global Head of Antimicrobial Technologies at Heraeus Precious Metals said: “AGXX is skin-friendly,* BPR-compliant, and suitable for a wide range of applications. Results from our joint tests with Covestro now show that AGXX can be combined with Impranil^® PU dispersions to add long-lasting antimicrobial properties to textile coatings for synthetic materials.”

Tests also revealed that incorporating AGXX with INSQIN^® textile coatings technology from Covestro does not impact manufacturing processes. “We found that AGXX could be mixed with our Impranil^® products without dulling the performance or properties of either solution or requiring any changes to manufacturing processes for coated textiles,” said Dr. Torsten Pohl, Global Head of Textile Coatings at Covestro. “When combined with AGXX, our INSQIN^® technology maintains its cleanability, flexibility, and ability to withstand usage over long periods. For textile coating manufacturers, this tried-and-tested guide formulation offers a fast and effective way to infuse their coatings with safer and more sustainable antimicrobial properties and still gain the sustainability improvements of our low-VOC waterborne PU dispersions.”

With demand for hygienic, reliable, BPR-regulation-compliant, and safer textile coatings expected to increase, the combination of AGXX and INSQIN^® technology will enable textile manufacturers to quickly adapt to the rapidly evolving needs of the sharing economy.

To see how the combined guide formulation works in real-world applications, visit Techtextil 2026 in Frankfurt from April 21 to 24, 2026. Items coated with AGXX and Impranil^® will be on display at the Covestro booth.

*Tested by bio compatibility test according to ISO 10993-5

About Heraeus Precious Metals
Heraeus Precious Metals is globally leading in the precious metals industry. The company is part of the Heraeus Group and covers the value chain from trading to precious metals products to refining and recycling. It has extensive expertise in all platinum group metals as well as gold and silver.

With more than 3,000 employees at 16 sites worldwide, Heraeus Precious Metals offers a broad portfolio of products that are essential for many industries such as the automotive, chemicals, semiconductor, pharmaceutical, hydrogen and jewelry industry. Find more information on the Heraeus Precious Metals website. www.heraeus-precious-metals.com

The integration of the Imagio^® material database into Autodesk's VRED, one of the world's leading design platforms for cars and other transportation vehicles such as aircraft or rail vehicles, provides designers worldwide with immediate access to photorealistic representations of color, gloss, transparency, translucency, or surface texture of the versatile polycarbonate materials of Covestro.

"The integration of our digital sample library into Autodesk VRED is a milestone for both partners," says Dr. Tobias Rausch, Business Development Manager for Digital Sampling in the Engineering Plastics Business Entity at Covestro. "We are effectively lowering the entry barrier to our material world for designers of vehicles and auto parts. They can now easily find our polycarbonate materials and their many facets and try them out realistically for their application with just a few clicks. This saves a series of iterations and thus time, money, and emissions associated with transport and sample production."

Higher Efficiency and Precision in Design

The time saved is a crucial advantage in an industry like automotive, where development cycles are becoming shorter and efficiency in the design process is increasingly important. The ability to easily experiment with photorealistic effects and surface structures that can be applied to the respective application via drag-and-drop is a major advantage. Unlike physical samples, this approach also leaves less room for interpretation and thus errors, which has always existed when transferring properties from a sample to the final application.

"The integration of Imagio^® significantly expands the potential of our design portfolio and helps our users enormously," explains Marek Trawny, Director of Product Management - Automotive & Conceptual Design at Autodesk VRED. "In a time when speed and precision in the design process are crucial, photorealistic digital material twins offer our users a decisive advantage. Designers can now immediately and accurately see how polycarbonate materials will look in their designs. This aids decision-making and fuels creativity."

Up next: Mechanical Properties or Weathering Simulations

Autodesk is one of the main providers of design software for the automotive industry and is used by leading manufacturers. The exclusive presence of Covestro in this digital design tool, where design and material decisions are made, is a strategic milestone for both companies. Future functionalities are planned, such as connections to simulation tools for mechanical properties, rheology, or weathering simulations. This will allow designers to simulate how materials behave after years of exposure to sun and rain and visualize the resulting changes in appearance.

The Imagio^® integration is available with Autodesk VRED Professional 2026.1. Users need an Imagio^® account, which is available for business customers and public organizations. For users of other visualization platforms, Imagio^® remains accessible through its web interface, offering the same comprehensive material library with downloadable AxF files compatible with most leading rendering software programs.

Covestro at K 2025

This project also underlines "The Material Effect" – the guiding concept of the presence of Covestro at this year's K trade fair in Düsseldorf. At stand A75 in hall 6, Covestro will place special emphasis on progress and innovations in the areas of sustainable future, automotive, electronics, healthcare, sports and leisure.

https://www.autodesk.com/products/vred/overview
Imagio Color Finder
https://solutions.covestro.com/en/highlights/articles/cases/2025/digital-material-twins-for-automotive-design

The announcement aligns strongly with this year’s World Green Building Week¹ motto, “Business goes better when you're bold on buildings,” as partners Covestro, Recticel and Brightlands all work towards bold, more sustainable solutions that do not compromise on technical performance but enable the building industry to reduce its ecological footprint and accelerate its transition to circularity.

“The construction sector is responsible for about 37% of global CO₂ emissions, with around a quarter stemming from embodied carbon², e.g. emissions associated with the building materials before a building is even in use,” says Fernando Resende, Marketing Manager Building & Construction EMEA-LATAM at Covestro. “This urgently needs to change. Through our collaboration with Recticel, we’re able to offer a compelling alternative.”

Brightlands Circular Space: Platform for circular collaboration

The 7,500 m² Circular House will serve as a living lab for demonstrating, co-creating and piloting zero-waste plastic technologies. It integrates sustainable design at every level, using innovative materials to reduce both operational and embodied carbon. As part of its mission, Circular House aims to share best practices in circular solutions in its Experience Space and host events in which Covestro and Recticel could share knowledge about circular building materials with students and peers as well.

“In the Circular House, we chose insulation boards that incorporate more sustainable raw materials, meeting both performance and sustainability requirements,” states Lia Voermans, chair of the Steering Board at Brightlands Circular Space. “This way, we apply the same circular principles driving Brightlands Circular Space by embedding them into the design of our demonstration facility for circular plastics, showing how circular and low-carbon materials can be integrated into real-world building projects.”

The building, located on Brightlands Chemelot Campus in Sittard-Geleen, the Netherlands, is part of the Brightlands Circular Space. The facility is the first of its kind: an open-access, circular plastics demonstration hub where R&D can be scaled and integrated with real-world industrial infrastructure.

Jointly furthering sustainability

Covestro has enabled Recticel to use Desmodur^® CQ MS into its Recticel’s “Eurothane^® Silver Impact” insulation boards, which are now used to insulate the roof of the Circular House at Brightlands. Desmodur^® CQ MS is based on climate-neutral³ methylene diphenyl diisocyanate (MDI), produced using bio-circular feedstocks, certified via the mass balance approach. As a result, the “Eurothane^® Silver Impact” boards used in the Circular House contain 43%⁴ less embodied carbon compared to standard versions, while maintaining the trusted technical and thermal performance.

“The buildings of tomorrow must be measured by more than just energy efficiency. They must address embodied carbon, material circularity and long-term environmental impact across their entire lifespan,” says Benedikt van Roosmalen, Commercial Manager at Recticel. “The collaboration with Covestro allowed us to create Eurothane^® Silver Impact insulation boards, which have a reduced carbon footprint compared to conventional insulation boards.”

About Recticel:

Recticel is a Belgian insulation Group with a strong presence in Europe and the USA. It offers smart insulation solutions that advance a carbon-free economy and a better quality of life.
Recticel delivers upon a portfolio of Insulation Boards, Insulated Panels and Acoustic Solutions.
Recticel Insulation designs polyurethane thermal and thermo-acoustic boards for optimal building comfort and energy efficiency. This includes vacuum insulation panels (VIP) by Turvac.
Trimo enables the highest aesthetic standards and extends architectural capabilities with its mineral wool insulated panels and modular space solution, primarily in non-residential applications. With the recent acquisition of REX Panels & Profiles, the portfolio now includes PIR insulated panels.
Soundcoat provides acoustic solutions used in some of the world’s leading technological innovations.
At the end of 2024, Recticel employed 1,275 people and had achieved sales of EUR 610.2 million. Its operations are spread over seven countries.
The Science Based Targets initiative (SBTi) approved Recticel’s near-term targets for the reduction of scope 1, 2 & 3 greenhouse gas emissions by 2030 (from base year 2021) and net-zero targets for 2050.
CDP added Recticel to its 2024 A list for Climate Change.
Recticel is listed on Euronext in Brussels (Euronext: RECT - Reuters: RECT.BR - Bloomberg: RECT:BB).

About Brightlands Circular Space:

Brightlands Circular Space (BCS) is in Sittard-Geleen (NL) and is a cooperation between Brightlands Chemelot Campus, Maastricht University and TNO (the Dutch Organization for Applied Scientific Research).
BCS is part of the Brightlands ecosystem of 30.000 innovators and 350 companies and addresses sustainability by advancing the circular reuse of plastics, transforming them into raw materials for new products and closing the loop on an industrial scale. Currently BCS is building a first of a kind open innovation R&D demonstration center, designed with sustainability and circularity as priorities and with the aim to foster the development and scaling of circular plastic solutions in fields as packaging, automotive and electronics. From here, BCS facilitates collaboration across the entire plastics value chain.

_{¹ World Green Building Week is an annual global campaign organized by the World Green Building Council (WorldGBC) to accelerate sustainable buildings for everyone, everywhere. The 2025 edition takes place from September 8–12, with activities coordinated by Green Building Councils and partners worldwide.}

_{² According to the Global Alliance for the Building and Construction from United Nations Environment Programme}

_{³ Climate neutrality is the result of an internal assessment based on the TÜV reviewed EcoPAss LCA method (ID No. 0000083440), of a partial product life cycle from raw material extraction (cradle) to the factory gate (of Covestro), also known as cradle-to-gate assessment. The calculation takes into account biogenic carbon sequestration based on preliminary data from the supply chain. No compensation measures were applied.}

_{⁴ Internal LCA calculation according to EN15804+A2 standard, for modules A1 - A3 (cradle to gate), based on the mass balance method.}

“For ten years, our people have proven that breakthrough innovations happen when curious minds meet courageous hearts,” said Markus Steilemann, CEO of Covestro. “I'm incredibly proud of our global team. Their passion, creativity, and resilience have formed the foundation of our culture. Thanks to their dedication, we continue to overcome challenges, seize opportunities, and create solutions that make the world a brighter place.”

A decade of transformation

Over the past decade, Covestro has achieved major milestones on its journey toward becoming a more innovative, sustainable, and resilient company. Since 2015, Covestro has invested more than 4 billion euros in expanding and modernizing its global operations, with a clear focus on sustainable production technologies. A significant step was the successful integration of DSM’s Resins & Functional Materials business, which strengthened Covestro’s position in sustainable coating solutions and broadened its customer base.

The company has driven forward key technologies for renewable-based raw materials, pioneered new chemical recycling methods for high-performance plastics, and signed 11 power purchase agreements to significantly increase the share of renewable energy in its operations. In recognition of its commitment to innovation and people, Covestro has repeatedly been named a top employer in multiple regions, including Greater China, where the company operates 10 production sites alone.

People and values at the core

Covestro’s success over the past decade is rooted in its purpose “to make the world a brighter place” and a corporate culture defined by its C³ values: Curious, Courageous, and Colorful. These values shape how the company approaches innovation and collaboration. Curiosity drives Covestro to explore new solutions; courage empowers teams to make bold decisions; and diversity of perspectives fosters creativity and resilience.

The company’s “We Are 1” culture reflects this spirit of collaboration and shared purpose, connecting more than 17,000 employees across regions, functions, and backgrounds. It is this collective mindset that has allowed Covestro to evolve from a newcomer in 2015 into a trusted global partner shaping sustainable material solutions.

Celebrating a global community

To mark its 10th anniversary, Covestro is celebrating with employees around the world and launching initiatives that reflect the company’s deep appreciation for its people.

In Germany, large-format posters are being installed in and around production sites as a visible expression of thanks to employees. These posters complement small gatherings and celebrations taking place at the sites and within the plants. In addition, Covestro, together with the Works Council, is supporting local food banks at its German sites with donations – a way to also say thank you to the communities, with a special focus on those in need. In addition, a specially designed Covestro-branded bus is now on the road in Leverkusen – featuring materials produced by Covestro itself, including polycarbonates in the windows, polyurethanes in the seats, and special coatings for the exterior surfaces. 
In North America, Covestro has initiated the “10 for 10” corporate volunteering campaign, aiming to reach 10,000 volunteer hours by September 2025. For every recorded volunteer hour, Covestro donates 10 meals to local food banks, with a goal of up to 100,000 meals in total. This initiative reflects the company’s ongoing commitment to supporting the communities where it operates.

Across China and the Asia-Pacific region, the anniversary celebrations focus on employee recognition and community engagement. Highlights include a video campaign capturing personal stories from employees who have shaped Covestro’s first decade, a photo initiative where colleagues form “10” or “We Are 1” shapes, and the “Well Together” wellbeing program, which encourages employees to participate in activities such as running, cycling, and hiking to promote health, teamwork, and inclusion.

Looking ahead

As Covestro enters its second decade, the company remains committed to driving innovation and shaping a sustainable future. Strategic priorities include achieving full circularity, reaching climate neutrality across operations, accelerating the shift from fossil-based to renewable raw materials, and expanding digital capabilities, including the application of artificial intelligence to improve efficiency and develop new solutions.

Partnerships will play a central role in this transformation. Under this lens, the potential partnership with XRG also plays an important role, where we aim to jointly drive innovation, expand sustainable material solutions, and strengthen our position in global markets. By working closely with partners across value chains, Covestro is determined to enable next-generation materials that address global challenges while supporting sustainable growth.

As part of the transaction, two specialized production sites in Switzerland and Germany will transfer to Covestro. These facilities strengthen both the company’s global manufacturing network and the regional availability of adhesive films. In addition, complementary technologies, new customer relationships, and an expanded product portfolio create further value-creation potential.

Both parties have agreed not to disclose the purchase price. The financing will be through cash and is thus aligned with Covestro’s goal of maintaining a solid investment-grade rating. 

In qualifying, the Covestro Æthon secured pole position with a time of 1:52.50 minutes, setting a new team record. Never before has a Team Sonnenwagen solar race car been faster on the circuit in Darwin. After five days of racing, the new Sonnenwagen Covestro Æthon finished in fourth place – a world-class performance in a strong field of 37 teams from 18 countries, made possible in part by Covestro products.

“Regardless of the outcome of the race, Team Sonnenwagen has done a great job in my opinion,” says Dr. Thorsten Dreier, Chief Technology Officer at Covestro. “What these students from Aachen have achieved with the design of their solar car is a demonstration of innovative strength, team spirit, and determination. They deserve nothing but congratulations. And I am always delighted that we are able to support this extraordinary team with our innovative and sustainable technologies and our expertise.”

“We are incredibly proud of what we have achieved,” says Leonie Brandt, Chair of Team Sonnenwagen Aachen. “Just finishing this race is an enormous achievement – and with Æthon, we made it into the ranks of the world’s best teams. Our vehicle proved itself under extreme conditions, and we are taking away many important insights.”

Covestro has been supporting Team Sonnenwagen since its founding in 2017 and has been its main sponsor and technology partner since 2018. The company is convinced that more sustainable high-performance plastics are key to climate-neutral and circular mobility. Together with customers and partners, Covestro is continuously developing new material solutions and recycling technologies for this purpose.

As with previous vehicles, the Æthon also relied on more sustainable high-performance plastics from Covestro – this time even more than ever before: over ten different materials from the company were used in the car.

One example of the application of our raw materials is chemically recycled car seat foam, which offers comfort while conserving resources. Sustainable mass-balanced Vulkollan^®, a particularly resilient elastomer that absorbs shocks between the battery and the chassis, was also used to protect the structure. For the cell holders, the team used Makrolon^® TC, a thermally conductive polycarbonate that helps to reduce the temperature during battery charging and discharging, thereby increasing the battery's service life. The coating cures at room temperature and contains a binder with a high proportion of sustainable Covestro raw materials. In addition, other Covestro raw materials were used as materials in the cockpit hood, outer shell, headlights, seat, and steering wheel, for example.

"The acquisition of these two former Vencorex sites fits perfectly to our portfolio and our strategic goals," says Christian Baier, Chief Financial Officer of Covestro. "While we maintain cost discipline to secure our short-term performance, we strengthen our long-term competitiveness through targeted investments like this one.”

Covestro is a renowned supplier for HDI derivatives. It is an essential component for example in polyurethanes coatings, adhesives and sealants. It can therefore be found in a myriad of applications, like coatings and adhesives for cars, trucks, bridges, ships, wood furniture and electronics, to name just a few. Through the acquisition, Covestro complements its existing capacities in the US, Germany, China, and India, among others.

"These new capacities in Thailand and the US will augment our existing comprehensive production capabilities across all major regions. They will enable us to produce and deliver according to our customer’s demands even better, especially during current market challenges," says Thomas Roemer, Head of the Business Entity Coatings and Adhesives at Covestro. “After the acquisition of the Resins & Functional Materials (RFM) business from DSM and investments in organic growth this is yet another sign of confidence the company has in the coatings and adhesives business. I look forward to welcoming the new colleagues into our organization!”

Both parties have agreed not to disclose the purchase price. The transaction is expected to close by the end of 2025.

While sale volumes remained largely stable, the decline in average selling prices and currency effects had a significant negative impact. Overall, Group sales fell by 8.4 percent to EUR 3.4 billion (previous year: EUR 3.7 billion). EBITDA fell by 15.6 percent to EUR 270 million (previous year: EUR 320 million), which was at the upper end of our own forecast. This was helped by the reversal of EUR 44 million in bonus provisions following the adjustment of the full-year forecast. Net income amounted to EUR –59 million (previous year: EUR –72 million). Free operating cash flow was EUR –228 million, compared with EUR –147 million in the same period of the previous year.

“The economic environment remains challenging: geopolitical tensions and new trade barriers unexpectedly increased pressure in the second quarter,” says Dr Markus Steilemann, CEO of Covestro. “We are also seeing the consequences: overcapacity, tougher price developments, and hardly any economic momentum. This makes it all the more important that we look ahead, stay the course, and focus on what we can control.”

Full year 2025: Annual forecast adjusted

Due to the continuing weak overall economic situation with no signs of a short-term recovery, Covestro adjusted its forecast for fiscal 2025 on July 11, 2025. Covestro now expects EBITDA to be between EUR 700 million and EUR 1.1 billion (previously: EUR 1.0 billion to EUR 1.4 billion). Free operating cash flow is now forecast to be between EUR –400 million and EUR +100 million (previously: EUR 0 million to EUR 300 million). Covestro expects its return on capital employed above the weighted average cost of capital (ROCE above WACC) for fiscal 2025 to be between –9 and –5 percentage points (previously: –6 to –3 percentage points). The expectation for greenhouse gas emissions measured in CO₂ equivalents remains unchanged: Covestro continues to plan for a value between 4.2 million and 4.8 million tons. For the third quarter of 2025, Covestro expects EBITDA between 150 and 250 million euros.

“In the second quarter, the ongoing challenges posed by weak demand, oversupply, and new trade tariffs had a significant impact on our margins,” says Christian Baier, CFO of Covestro. “Despite stable sales volumes, these external factors are clearly reflected in our results. A short-term recovery is not currently foreseeable – we have therefore adjusted our forecast and are resolutely implementing our transformation and efficiency measures.”

Acquisition strengthens sustainable growth

With the acquisition of Pontacol AG agreed in June 2025, Covestro is strategically expanding its portfolio in the specialty films segment and further advancing the implementation of its “Sustainable Future” strategy. The Swiss manufacturer of multilayer adhesive films brings two specialized production sites in Switzerland and Germany with around 100 employees to the company. The acquisition opens up additional value creation potential through complementary technologies, an expanded customer and product portfolio, and synergies in central functions. The transaction will be financed with cash and is therefore in line with Covestro’s goal of maintaining a solid investment-grade rating. The transaction is expected to close in the third quarter of 2025.

New Chief Commercial Officer

Monique Buch will join Covestro as Chief Commercial Officer (CCO) on August 1, 2025. She will be responsible for the Solutions & Specialties segment and will lead six business units, including the Supply Chain Centers in the three main regions. Monique Buch succeeds Sucheta Govil, whose second term ends on July 31, 2025. Monique Buch has been a member of Covestro’s Executive Board since June of this year.

Segment results at a glance

In the Performance Materials segment, sales declined by 11.8 percent to EUR 1.6 billion in the second quarter of 2025 (previous year: EUR 1.8 billion). EBITDA fell to EUR 149 million (previous year: EUR 196 million), weighed in particular by lower margins and expenses for implementing the STRONG transformation program. Free operating cash flow amounted to EUR –172 million (previous year: EUR –89 million).

The Solutions & Specialties segment recorded a 5.4 percent decline in sales to EUR 1.7 billion (previous year: EUR 1.8 billion). EBITDA amounted to EUR 175 million (previous year: EUR 174 million). Lower expenses for the STRONG transformation program and higher sales volumes had a positive effect here. Free operating cash flow amounted to EUR 56 million (previous year: EUR 36 million).

First half of the year marked by sustained price pressure

Group sales declined by 4.8 percent to EUR 6.9 billion in the first half of 2025 (previous year: EUR 7.2 billion). The decline was primarily due to lower sale prices, which had a negative impact of 3.0 percent. EBITDA at Group level amounted to EUR 407 million (previous year: EUR 593 million), while free operating cash flow was EUR –481 million (previous year: EUR –276 million).

Since 1987, the European Youth Parliament has brought together thousands of young people from all over Europe in various forums. The flagship events are more than one hundred international sessions held two to three times per year in different countries. In a format similar to the EU’s European Parliament, participants discuss a wide range of socio-political topics in committees, develop ideas, and pass resolutions.

Promoting Discussion and Collaboration

As a socially responsible company, Covestro is committed to supporting the networking, exchange, and creativity of young people – thus strengthening their understanding of democratic values. "Showing commitment and civil engagement is more important than ever," says CEO Markus Steilemann. "That’s why we actively participate in the Youth Parliament and are excited to hear the impulses young Europeans will bring."

At the 102nd international session in Turku, Finland, starting July 21, a Covestro representative will speak with participants about circular economy in the EU. Covestro sees circularity as a key to climate neutrality, environmental protection, resource conservation, and sustainable value creation—and aims to establish it as a global guiding principle.

The 103rd session in Málaga, Spain, kicking off in late October, will focus on strengthening Europe’s capacity for innovation. Covestro will speak in a committee on innovation and the knowledge society and engage with young participants. "It’s especially important to us that in times of populism and misinformation, a fact-based dialogue prevails and democratic values are not eroded," says Steilemann.

At the conclusion of these sessions, participants adopt resolutions at a general assembly to present viewpoints and propose specific solutions. These resolutions often reach political institutions and actors such as the European Parliament, the EU Commission, the Council of Europe, or UNESCO.

“Thorsten Dreier has significantly advanced Covestro's transition to climate-neutral production over the past two years, making an important contribution to Covestro's vision of a circular economy,” said Dr. Richard Pott, Chair of the Supervisory Board of Covestro AG. “We are convinced that Mr. Dreier will successfully continue the transformation of Covestro and we look forward to our continued collaboration."

"I am grateful for the trust placed in me. I am looking very much forward to continuing to drive the transformation of our company together with the Covestro employees and the Board of Management," said Dreier. “As Labor Director, it is very important to me to continue the trusting and constructive collaboration with the employees and the employee representatives that I have been able to establish in the past years."

In his role as Chief Technology Officer, Dreier assumes responsibility for the corporate functions Engineering, Process Technology, Group Health, Safety, Environment & Reliability and Group Procurement. In addition, the reporting segment Performance Materials is under his responsibility.

Other members of Covestro's Board of Management are Dr. Markus Steilemann as Chief Executive Officer, Christian Baier as Chief Financial Officer, Sucheta Govil as Chief Commercial Officer and Monique Buch, who will succeed Sucheta Govil as Chief Commercial Officer from August 2025.

While global population growth is slowing slightly, the number of people over 65 is expected to double by 2050. Older people want to remain mobile, independent, and socially integrated. At the same time, already overburdened healthcare systems must become more efficient and accessible. High-performance plastics enable medical innovations and intelligent environments that help seniors maintain independence and participate actively in society. Materials developed by Covestro support for example self-tracking with wearables and smartwatches, as well as telemedicine and remote monitoring.

Solutions for an Aging Global Population and Growing Middle Classes

Alongside the increasing number of seniors, the global middle class is also growing steadily. Despite regional differences, this population segment is expanding fastest – especially in Asia – and is expected to grow by more than one billion people this decade. With rising prosperity, the demand for high-quality products as well as expectations around comfort and sustainability are also increasing. Plastics featuring Covestro materials enable durable, smart, and resource-efficient goods that improve quality of life while reducing environmental impact.

A common factor across much of humanity is increasing connectivity. Over the next decade, we’re likely to live in a hyperconnected world enabling up to one million 5G-enabled digital devices per square kilometer. However, the digital revolution also brings growing levels of electronic waste and sharply rising electricity demand, particularly from data centers. Powerful, highly energy-efficient, and environmentally friendly devices and networks are therefore essential. Robust, recyclable plastics with versatile functions are indispensable in this regard.

Covestro is closely observing global trends such as socio-demographic change, urbanization, and developments in mobility, nutrition, and healthcare. The company provides forward-thinking plastics and their precursors, acting as a driver of progress across key industries.

• EBITDA is expected to be between EUR 700 million and EUR 1,100 million. The previous forecast projected EBITDA between EUR 1,000 million and EUR 1,400 million. The consensus expected this figure to be EUR 931 million. 
• Free operating cash flow (FOCF) is expected to be between EUR -400 million and EUR +100 million. The previous forecast projected FOCF between EUR 0 million and EUR 300 million. The consensus expected this figure to be EUR 106 million. 
• Return on capital employed over weighted average cost of capital (ROCE over WACC) is expected to be between -9 and -5 percentage points. The previous forecast projected ROCE over WACC between -6 and -3 percentage points. 

Unchanged, greenhouse gas emissions, measured via CO₂ equivalents, are expected to be between 4.2 million tons and 4.8 million tons. 

In the second quarter 2025, Covestro preliminary EBITDA amounted to EUR 270 million, which is within the previous forecast range between EUR 200 million and EUR 300 million. This was supported by the release of bonus provisions of EUR 43 million in line with the reduction of the full year forecast. The consensus expected this figure to be EUR 220 million.

The financial report for the second quarter 2025 will be published on July 31, 2025. 

Capital market expectations are based on the average values of the latest consensus estimates of financial analysts, recently published by Vara Research on July 7, 2025.