Why did Covestro maintain its upgraded EBITDA guidance for 2026 despite cutting growth forecasts for all its key customer industries?

Covestro maintained its upgraded full-year 2026 EBITDA guidance — now expecting it to be 'significantly above the prior year' for both the Performance Materials segment (previously expected at €375 million) and the Solutions & Specialties segment (previously expected at €681 million) — because its improved outlook is 'based primarily on higher selling prices recorded in the first half of the year.' Although it revised downward growth expectations across automotive, construction, furniture, and electrical/electronics/household appliances industries due to factors like the Middle East conflict, rising energy and raw material costs, and weakened demand in China, the pricing gains in H1 were sufficient to offset these headwinds in its earnings forecast.

What are Covestro’s revised 2026 growth forecasts for the global automotive and construction industries, and what does the company identify as the main cause?

Covestro revised its 2026 global automotive industry growth forecast to a contraction of 1.2%, down from the previously expected growth of 1.8% stated in its 2025 annual report; for the global construction industry, it lowered its forecast to 1.0% growth from 2.5%. The company identifies 'the Middle East conflict' as the primary driver behind both downgrades, stating it is 'weighing on industrial production and investment appetite through rising energy prices and raw material costs as well as heightened geopolitical uncertainty,' leading to 'a broad deferral of construction projects' and contributing to 'weaker global economic growth forecasts' across all its main customer industries.

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Covestro maintains guidance despite slashing growth outlook for key customer industries

Aug 3, 2026

Covestro raised its full-year earnings outlook driven by higher prices and lower raw material costs, while cutting growth forecasts for automotive, construction, and electronics sectors due to geopolitical instability and economic headwinds.

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