Story
Covestro Lifts 2026 Core Earnings Outlook on Strong First Half
Summary
The German chemicals manufacturer reported strong preliminary H1 results, driven by higher prices, and now expects full-year EBITDA, free cash flow, and ROCE to be significantly above 2025 levels.
German chemicals group Covestro (ETR:1COV) announced Thursday it expects full-year core earnings for 2026 to be significantly above the previous year's level, supported by a strong preliminary performance in the first half.
Preliminary H1 Results
The company released preliminary figures for the first six months of 2026, providing the basis for its upgraded forecast. The key metrics reported were:
- Sales: €6.73 billion
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA): €669 million
Covestro stated that the positive results were driven by higher sales prices, which managed to outpace the lagging increase in raw material costs during the period. This dynamic suggests a favorable margin environment for the company.
AdUpgraded Full-Year Guidance
Based on its first-half performance, Covestro issued an optimistic outlook for the full year. The company now projects that 2026 core operating earnings will be significantly above the level recorded in 2025.
In addition to the core earnings forecast, Covestro also anticipates that other key financial indicators, including free cash flow and the return on capital employed (ROCE) over the weighted average cost of capital, will be significantly better than in the prior year. This signals management's confidence in both profitability and operational efficiency for the remainder of 2026.