Covestro Maintains Operational Focus Amid Ownership Transition

Covestro secures key operational partnership for 5 more years as it prepares for shareholder squeeze-out and faces a challenging 2025 financial year.

While its departure from the public markets draws closer, Covestro's core business operations continue uninterrupted. In a move signaling stability during a period of significant ownership change, the chemical group has extended its collaboration with industrial services provider Bilfinger by an additional five years.

Shareholder Meeting to Formalize Exit

The next critical event for remaining investors is the Annual General Meeting scheduled for April 15, 2026. This gathering is expected to formally approve the transfer of remaining shares through a squeeze-out procedure. Abu Dhabi National Oil Company (ADNOC) already controls more than 95% of Covestro's equity. Concurrently, the company is transitioning from the Prime Standard to the General Standard segment on the Frankfurt Stock Exchange. The decision to renew the Bilfinger partnership underscores that securing its operational sites remains a top priority, irrespective of these corporate changes.

A Challenging Financial Year

This operational continuity comes against the backdrop of a difficult financial period. The company's results for the 2025 fiscal year offer limited cause for optimism. Group revenue declined by 8.7% to €12.9 billion. Earnings before interest, taxes, depreciation, and amortization (EBITDA) contracted sharply by approximately 31%, landing at €740 million. The year concluded with a negative free operating cash flow of €283 million. On a positive note, Covestro's efficiency program generated savings of around €275 million—a crucial buffer in the current challenging chemical industry environment.

Strategic Partnership for Core Chlorine Assets

The extended agreement with Bilfinger, in place since 2014, centers on the maintenance and assembly of electrical systems at Covestro's chemical parks in Dormagen and Uerdingen. These sites house the company's chlorine production facilities, which form the foundational input for numerous internal value chains. Bilfinger will retain responsibility for the upkeep and revisions of these critical electrical systems. The primary objective of the partnership is to enhance equipment availability by minimizing unplanned production stoppages.