Covestro AG, the German specialty chemicals company, has returned to profitability in the first half of 2026 after posting a significant loss in the same period last year.
Net income attributable to shareholders reached 120 million euros in the first half of 2026, compared to a loss of 219 million euros in the prior-year period.
Earnings per share came in at 0.58 euros, a sharp reversal from the loss per share of 1.16 euros recorded in the first half of last year.
The Group’s EBITDA surged 64.4% year-on-year to 669 million euros, up from 407 million euros in the comparable period, driven primarily by significantly improved margins.
Higher margins were the result of a significantly higher selling price level combined with substantially lower raw material prices, which more than offset the impact of higher energy costs.
Despite the strong earnings recovery, Group sales for the first half of 2026 declined by 1.9% to 6.729 billion euros, compared to 6.856 billion euros in the prior-year period.
The sales decline was mainly driven by unfavorable exchange rate developments, which had a negative impact of 2.6%, and lower sales volumes, which reduced overall sales by a further 0.9%.
Those headwinds were partly cushioned by stronger pricing, with a higher selling price level contributing a positive impact of 1.6% to overall sales for the period.
Looking ahead, Covestro has upgraded its full-year guidance, now expecting EBITDA to land significantly above the prior year rather than merely around that level as previously projected.
The revised outlook reflects growing management confidence that improved pricing dynamics and disciplined cost management will continue to support earnings through the remainder of 2026.
The results mark a notable turnaround for the specialty chemicals group, which has been navigating a challenging environment of volatile input costs, currency pressures, and shifting global demand patterns.
Investors will be watching closely to see whether the positive pricing trends that drove first-half performance remain intact as the second half of the year progresses.
