Heavy losses, layoffs, asset sales! How dire is it for global chemical giants in 2025?

In 2025, the global chemical industry underwent a profound adjustment period. Dow Chemical reported a net loss of $2.4 billion; Covestro, a net loss of €644 million; SABIC, a net loss of SAR 24.7 billion (approximately $6.6 billion); and LyondellBasell, a net loss of $738 million… Behind this string of staggering loss figures lies the longest downturn the global chemical industry has experienced in decades. Weak demand, overcapacity, geopolitical conflicts, and soaring energy costs—these four pressures converged, plunging once-thriving chemical giants into a collective winter. Yet some companies managed to break through against the odds: BASF’s net profit surged 118% year-on-year; PPG maintained steady adjusted earnings per share (EPS); and LG Chem’s operating profit jumped 35%. Amid this industry-wide shakeout, who will survive the cycle—and who is swimming naked? Performance Overview: Who Is Losing Money? Who Is Profiting? PlasticVision has compiled 2025 financial data for major global chemical giants—presented in a single table for a comprehensive industry snapshot: Note: ① LG Chem’s figure represents operating profit; all others report net profit; ② PPG’s figure is adjusted EPS; ③ Companies headquartered in the Eurozone report in euros; all others in U.S. dollars. Hotspots of Loss: Who Fell the Hardest? Dow Chemical’s full-year 2025 net sales totaled $40 billion, down 7% year-on-year; GAAP net loss reached $2.4 billion; operating EBIT dropped sharply from $2.6 billion in 2024 to just $400 million—a decline exceeding 80%; and operating cash flow fell from $2.9 billion to $1.1 billion—nearly halved. Saudi Basic Industries Corporation (SABIC) posted 2025 revenue of SAR 116.5 billion (approx. $31.1 billion), down 1% year-on-year—but recorded a net loss of SAR 24.7 billion (approx. $6.6 billion). This massive loss stemmed not primarily from operational deterioration, but rather from large-scale asset impairments. In its financial report, SABIC disclosed significant write-downs on certain assets, alongside declining average selling prices for key products—both contributing to the sharp profit contraction. Nevertheless, the company’s free cash flow stood at SAR 7.2 billion, up 17% year-on-year, providing ample financial headroom for future transformation. Covestro’s 2025 sales amounted to €12.942 billion, down 8.7% year-on-year; EBITDA was €740 million, down 30.9%; and net loss widened to €644 million—up from €266 million in 2024. As the world’s leading polyurethane producer, Covestro is navigating a challenging transition. CEO Markus Steilemann stated the company is advancing its “Winning with Purpose” strategy, implementing cost reductions and business restructuring to weather the industry downturn. Additionally, LyondellBasell reported 2025 sales of $30.153 billion, down 10% year-on-year, and a net loss of $738 million. In its earnings release, the company candidly described 2025 as one of the longest downturns ever recorded in the chemical industry—citing weak global demand for polyethylene and polypropylene, especially amid persistently high inventory levels in China, which drove steep declines in product prices and margins. Notably, LyondellBasell’s 2025 Cash Improvement Program exceeded its target, delivering $800 million in cash improvement (vs. an original goal of $600 million), and raised its cumulative 2026 target to $1.3 billion.

Losses mount! BASF, Dow, LyondellBasell, Eastman… 29 chemical companies release their 2023 financial results.

▶▶ INEOS Group Holdings 2023 revenue: €14.885 billion (approx. $16 billion), down from €20.927 billion in 2022. Full-year operating profit: €707 million, down from €2.001 billion the prior year. Full-year profit: €309 million, down from €2 billion the prior year. ▶▶ Covestro 2023 sales: €14.377 billion (approx. $15.4 billion), down 20% from €17.968 billion in 2022. EBITDA: €1.08 billion, down 33.2% from €1.617 billion the prior year. Full-year net loss: €198 million, improved from a net loss of €272 million in 2022. ▶▶ DSM-Firmenich Q4 sales: €3.112 billion (approx. $3.337 billion), down 6% from €3.295 billion in the same period last year. Adjusted EBITDA: €439 million, down 12% year-on-year. 2023 full-year sales: €12.31 billion (approx. $13.2 billion), down 7% from €13.238 billion in 2022. Adjusted EBITDA: €1.777 billion, down 22% year-on-year. Full-year adjusted net profit: €555 million, down 45% from €1.013 billion in 2022. ▶▶ Henkel AG & Co. KGaA Q4 group sales: €5.148 billion, down from €5.509 billion in the same quarter last year. Adhesives Technologies division Q4 sales: €2.604 billion (approx. $2.79 billion); Consumer Brands division Q4 sales: €2.505 billion. 2023 full-year group sales: €21.514 billion, down from €22.397 billion in 2022. Full-year group EBIT: €2.011 billion, up from €1.81 billion the prior year. Full-year Adhesives Technologies sales: €10.79 billion (approx. $11.6 billion), with EBIT of €1.423 billion. Full-year Consumer Brands sales: €10.565 billion, with EBIT of €753 million. ▶▶ Arkema Group 2023 Q4 and full-year results: Q4 sales: €2.222 billion (approx. $2.38 billion), down 11.4% from €2.507 billion in the same period last year. EBITDA: €331 million, up 13.7% from €291 million the prior year. Adjusted net profit for the quarter: €107 million, up from €88 million the prior year. 2023 full-year sales: €9.514 billion (approx. $10.2 billion), down 17.6% from €11.55 billion in 2022. EBITDA: €1.501 billion, down 28.9% from €2.11 billion the prior year. Full-year adjusted net profit: €653 million, down 44% from €1.167 billion in 2022. ▶▶ LANXESS Q4 sales: €1.436 billion (approx. $1.54 billion), down 27.2% from €1.973 billion in the same quarter last year.

LyondellBasell Q3 Adj. EPS Misses Estimates; Net Income $758 Million

3 days ago

LyondellBasell reported Q3 adjusted EPS of $2.54, missing estimates despite a 151% year-on-year increase to $758 million net income. Sales of $8.499 billion also missed consensus, driven by strong performance in its Intermediates and Derivatives segment.

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