Covestro AG · VIE:1COV
Covestro — Q3 2025 Earnings Presentation
19 slides from Covestro's earnings presentation, Oct 30, 2025
Slide 1: Delivering on cost savings – Q3 2025
Delivering on cost savings Financial Reporting Q3 2025 covestro.com Q3 2025 │Earnings Call 0
Slide 2: Forward-looking statements
Forward-looking statements This presentation may contain forward-looking statements based on current assumptions and forecasts made by Covestro AG. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situati
Slide 3: Acquisition to strengthen Solutions & Specialties segment
Acquisition to strengthen Solutions & Specialties segment Covestro acquires Vencorex aliphatic isocyanate business in USA and Thailand STRATEGIC FIT CURRENT STATUS DEAL RATIONALE COVESTRO BENEFITS Vencorex operations Strengthening BE CA Feedstock synergies global position on HDI monomer Improve Busi
Slide 4: Key financials Q3 2025
Key financials Q3 2025 -1.5% €3.2bn €242m Y/Y volume growth Sales EBITDA €111m FY 2025 FOCF Guidance narrowed 3 Q3 2025 │ Earnings Call
Slide 5: EMLA with lower volumes and persistent economic weakness
EMLA with lower volumes and persistent economic weakness Q3 2025 – Regional split Sales volume Y/Y HIGHLIGHTS • Mostly declining volume development across the key industries: China €779m • Auto low single-digit % increase EMLA €1,217m • Construction low single-digit % decline Volume -8.0% • Electro
Slide 6: Sales decline mainly due to negative pricing and adverse FX
Sales decline mainly due to negative pricing and adverse FX Q3 2025 – Sales bridge in € million HIGHLIGHTS Volume negative -12.0% • Volumes lower at -1.5% Y/Y • Performance Materials with 3.1% Y/Y decline and 3,603 Solutions & Specialties flat (+0.4% Y/Y) Pricing negative -52 • Pricing affected sale
Slide 7: EBITDA stabilized by self-help
EBITDA stabilized by self-help Q3 2025 – EBITDA bridge in € million HIGHLIGHTS Negative volumes -15.7% • Mainly caused by Dormagen fire event leading to volume losses in TDI and basic chemicals 287 Pricing delta -102 Negative pricing delta -17 88 242 • Negative pricing delta due to overall unfavorab
Slide 8: Solutions & Specialties – Sales affected by FX and lower prices
Solutions & Specialties – Sales affected by FX and lower prices Segment results – Highlights Q3 2025 SALES HIGHLIGHTS Q3 2025 in € million / changes Y/Y • Sales declined by 7.7% Y/Y, driven by prices -6.2% -3.3% -2.0% -2.9% -1.2% -5.4% -7.7% (-4.3%) and FX (-3.8%) with flat volumes (+0.4%) • Quarter
Slide 9: Performance Materials – EBITDA helped by insurance booking
Performance Materials – EBITDA helped by insurance booking Segment results – Highlights Q3 2025 SALES HIGHLIGHTS Q3 2025 in € million / changes Y/Y • Sales declined (-16.2%) Y/Y, driven by lower -5.7% 2.5% 4.1% 5.2% -0.7% -11.8% prices (-9.8%), FX (-3.3%) and volumes (-3.1%) -16.2% • Quarter-over-qu
Slide 10: FOCF remains negative despite a positive contribution in Q3 2025
FOCF remains negative despite a positive contribution in Q3 2025 Historical FOCF development in € million HIGHLIGHTS 1,073 • 9M 2025, FOCF was negative €370m with positive FOCF in Q3 contributing €111m 159 • Working capital to sales ratio(3) after 9M stable at v 18.5% (9M 2024: 18.6%) -164 • Capex i
Slide 11: Total net debt increase caused by negative FOCF
Total net debt increase caused by negative FOCF September 30, 2025 – Total net debt in € million HIGHLIGHTS 46 • Total net debt to EBITDA ratio(2) of 3.8x at the 370 3,225 end of 9M 2025 compared to 3.0x at the end of -23 9M 2024 -101 2,933 • No financial covenants in place • Committed to a solid in
Slide 12: GDP outlook for 2025 reflecting economical challenges
GDP outlook for 2025 reflecting economical challenges Global demand development KEY CUSTOMER INDUSTRIES 2024 Y/Y(1) 2025 Y/Y(2) 2025e(3) UPDATE Global GDP +2.9% +2.8% +2.7% Automotive -0.6% +2.7% +1.9% +8.2% +22.4% +25.7% EV / BEV Construction -2.4% +0.2% +0.6% Residential -5.4% -1.5% -1.8% Furnitur
Slide 13: FY 2025 guidance narrowed as usual towards year end
FY 2025 guidance narrowed as usual towards year end Full year guidance 2025 Guidance FY 2025 FY 2024 as of Feb. 26 as of May 6 as of July 11 as of October 30 HIGHLIGHTS EBITDA €1,071m €1,000 to 1,600m €1,000 to 1,400m €700 to 1,100m €700 to 800m Mark-to-market (M2M): FOCF €89m €0 to 300m €0 to 300m
Slide 14: Covestro self-help reducing weak economy and DOR impact
Covestro self-help reducing weak economy and DOR impact Break-down of FY 2025 EBITDA guidance narrowing HIGHLIGHTS in € million Market Development Self-help DOR event • Decisive action to counter current (~€-700m*) (~€300m*) (~€-150m) market headwinds ~1,300 • STRONG in FY2025 with ~€250m cumulated
Slide 15: Regulatory approvals progressing as expected
Regulatory approvals progressing as expected Progress on XRG transaction as of October 30, 2025 SHARE OWNERSHIP REGULATORY APPROVALS MERGER CONTROL APPROVALS Foreign Direct Investment (FDI) / Brazil Foreign Subsidies Regulation (FSR) Pre-closure Canada China Germany COMESA 3.44% EU Egypt 81.77% >95
Slide 16: Delivering on cost savings – Q3 2025 Highlights
Delivering on cost savings Q3 2025 Highlights Negative volume development burdened by Dormagen incident and ongoing challenging economic conditions Sales lower at €3.2bn mainly caused by lower prices and unfavorable FX EBITDA of €242m towards upper end of guidance range helped by delivering on our c
Slide 17: Questions & Answers
Questions & Answers Q3 2025 Earnings Call Remarks: • Please use hand raise function to verbally ask questions • For posted questions, please use the „Q&A“ / „F&A“ tab covestro.com Q3 2025 │Earnings Call 16
Slide 18: Appendix
Appendix covestro.com Q3 2025 │Earnings Call 17
Slide 19: Upcoming IR events
Upcoming IR events Find more information on covestro.com/en/investors REPORTING DATES • February 26, 2026 2025 Annual Report • May 5, 2026 Q1 2026 Quarterly Statement • July 31, 2026 Q2 2026 Quarterly Statement ANNUAL GENERAL MEETING • April 15, 2026 Annual General Meeting 18 Q3 2025 │ Earnings Call