Covestro Lowers 2025 Forecast
Courtesy of Covestro.
Covestro AG has revised its financial outlook for 2025, citing a persistently weak global economy and no signs of near-term recovery. The company lowered projections for EBITDA, free operating cash flow (FOCF), and return on capital employed over weighted average cost of capital (ROCE over WACC).
The updated full-year guidance is as follows:
EBITDA is now expected to range between €700 million and €1.1 billion, down from the previous estimate of €1 billion to €1.4 billion. Analyst consensus, according to Vara Research, projected €931 million.
FOCF is forecast between negative €400 million and positive €100 million, compared to the prior range of €0 to €300 million. Consensus had projected €106 million.
ROCE over WACC is anticipated to range between -9 and -5 percentage points, lower than the earlier projection of -6 to -3 points.
The company maintained its forecast for greenhouse gas emissions, measured in CO₂ equivalents, at 4.2 million to 4.8 million tons.
In its preliminary second-quarter results, Covestro reported EBITDA of €270 million, which falls within its forecast range of €200 million to €300 million and above analyst expectations of €220 million. This result was supported in part by a €43 million release of bonus provisions tied to the revised full-year forecast.
Covestro will publish its full financial results for the second quarter on July 31, 2025.
Capital market expectations are based on the average values from the latest analyst estimates, most recently compiled by Vara Research on July 7, 2025.
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