Finance
Covestro trims full-year guidance, says ADNOC deal on track to close in Q4
Published by Global Banking & Finance Review®
Posted on October 30, 2025
2 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on October 30, 2025
2 min readLast updated: January 21, 2026
Covestro lowers profit forecast amid soft demand but confirms ADNOC acquisition is on track for Q4, ensuring financial stability.
By Bartosz Dabrowski
(Reuters) -German chemicals maker Covestro narrowed its full-year core profit forecast on Thursday due to soft demand, but said its financial stability would be secured as the $17 billion takeover by Abu Dhabi state oil firm ADNOC is set to close in the fourth quarter.
Covestro, which had already cut its outlook twice this year, now sees its yearly earnings before interest, taxes, depreciation and amortization between 700 million and 800 million euros ($816 million and $933 million). Its previous forecast was for the EBITDA to come in a range of 700 million to 1.1 billion euros.
The company, whose products include foam chemicals used in mattresses, car seats and insulation for buildings, had said earlier this year that the prospect of higher U.S. tariffs was leading to a huge oversupply of products to the market there, particularly from the Asia-Pacific region, which had then caused a big drop in prices.
Covestro also said on Thursday that a fire at an external substation in Dormagen, Germany would have a negative impact in a low three-digit million euro range for the full year.
Its third-quarter EBITDA fell 15.7% to 242 million euros, beating an analysts' average estimate of 183 million euros in a company-provided consensus.
CLOSING OF ADNOC'S TAKEOVER ON TARGET
Regulatory approvals for the takeover by ADNOC, currently being examined by the European Commission, are progressing as expected and the deal is on track for closing in the final quarter of the year, the company said.
The EU regulator was concerned that ADNOC, in its biggest acquisition yet and one of the largest foreign takeovers of an EU company by a Gulf state, may be using state subsidies to acquire the chemicals company.
($1 = 0.8575 euros)
(Reporting by Bartosz Dabrowski in Gdansk, editing by Milla Nissi-Prussak)
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a financial metric used to evaluate a company's operating performance.
A merger is a business combination where two companies join to form one entity. Mergers can help companies grow, reduce competition, and achieve economies of scale.
Financial stability refers to a condition where the financial system operates effectively, with institutions able to withstand economic shocks without significant disruptions.
A takeover occurs when one company acquires control over another company, often by purchasing a majority of its shares. This can be friendly or hostile.
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