Massive losses, layoffs, asset sales! How dire is the situation for global chemical giants in 2025?

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 converging have plunged once-thriving chemical giants into a collective winter. Yet some companies are breaking through against the odds: BASF’s net profit surged 118% year-on-year; PPG’s adjusted earnings per share (EPS) remained stable; and LG Chem’s operating profit jumped 35%. Amid this industry-wide shakeout, who will survive the cycle—and who is merely swimming naked? Performance Overview: Who’s Losing? Who’s Profiting? Specialized Plastics Vision compiled 2025 financial data for major global chemical giants—presented in one table to reveal the full industry picture: Note: ① LG Chem’s figure reflects operating profit; all others reflect net profit; ② PPG’s figure is adjusted EPS; ③ Companies headquartered in the eurozone report in euros; all others in U.S. dollars. Loss Hotspots: Who Fell the Hardest? Dow Chemical’s full-year 2025 net sales totaled $40 billion, down 7% year-on-year; its GAAP net loss reached $2.4 billion; its operating EBIT plummeted from $2.6 billion in 2024 to just $400 million—a drop 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 a marginal 1% year-on-year—but its net profit swung to a loss of SAR 24.7 billion (approx. $6.6 billion). This massive loss stems not primarily from operational deterioration, but rather from large-scale asset impairments. In its financial report, SABIC disclosed significant write-downs on certain assets, coupled with declining average selling prices for key products—both contributing to sharp profit erosion. Nevertheless, the company generated free cash flow of SAR 7.2 billion, up 17% year-on-year, providing ample financial flexibility for future transformation. Covestro’s 2025 sales amounted to €12.942 billion, down 8.7% year-on-year; its EBITDA stood at €740 million, down 30.9%; and its net loss widened to €644 million—up from a €266 million loss in 2024. As the world’s leading polyurethane producer, Covestro is undergoing a challenging transformation. CEO Markus Steilemann stated the company is advancing its “Winning Strategy,” implementing cost reductions and business restructuring to weather the industry downturn. Additionally, LyondellBasell recorded 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 noted that 2025 marked one of the longest downturns ever recorded in the chemical industry, with weak global demand for polyethylene and polypropylene—especially amid persistently high inventory levels in China—driving steep declines in product prices and margins. Notably, LyondellBasell exceeded its 2025 cash improvement target, delivering $800 million in cash improvements (vs. an original target of $600 million), and raised its cumulative 2026 target to $1.3 billion.

Tu Caijing | PPG Posts Zero Organic Growth in 2025—Stock Price Dips! Emergency ‘Cost Scalpel’ Launched—Can It Turn Things Around This Year?

On January 27, PPG—a global leader in coatings—released its Q4 and full-year 2025 financial results. Its adjusted EPS slightly missed market expectations, prompting a 2.4% decline in after-hours stock price. For the full year 2025, PPG achieved net sales of $15.9 billion—flat year-on-year; organic sales rose 2%, with volume and pricing each contributing one percentage point of growth. On the profitability front, reported EPS was $6.92, while adjusted EPS stood at $7.58; net income from continuing operations increased 17% year-on-year to $1.57 billion; segment profit margin held steady at 17%, and segment EBITDA margin at 19%—demonstrating sustained profitability. PPG generated $1.9 billion in operating cash flow for the year—up more than $500 million year-on-year. Through $790 million in share repurchases (representing ~3% of outstanding shares) and $630 million in dividend payments, the company returned $1.4 billion to shareholders. As of year-end, $2 billion in share repurchase authorization remained available. Cost control efforts delivered tangible results: structural cost-cutting initiatives generated $75 million in benefits for the year—providing solid support for profit growth. In Q4, PPG’s growth momentum accelerated, achieving net sales of $3.9 billion—exceeding analysts’ consensus estimate of $3.77 billion. Driven by higher selling prices across regions and volume growth, organic sales rose 3%, marking the highest quarterly growth rate of the year. Profitability-wise, diluted EPS came in at $1.34, and adjusted EPS at $1.51—slightly below the market’s consensus expectation of $1.58. However, net income surged dramatically—from $2 million ($0.01 per share) a year earlier to $302 million. During the quarter, PPG continued returning value to shareholders, completing approximately $100 million in share repurchases. In Q4, PPG’s three core business segments posted differentiated growth—with standout performance in key areas. Specifically, its Global Architectural Coatings segment achieved net sales of $951 million—up 8% year-on-year. Higher selling prices and favorable currency effects offset the impact of divesting its Russian architectural coatings business. EBITDA rose 14% to $164 million, lifting segment margin to 17.2%. Regionally, Latin America and the Asia-Pacific posted high single-digit organic sales growth; retail sales in Mexico remained robust, and project-related sales continued recovering—while only Europe’s volume decline partially offset overall growth momentum.

PPG Industries Inc (PPG) Shares Fall 3.1% -- What GF Score of 87 Tells Investors

Jul 23, 2026

PPG Industries shares declined 3.1% to $113.75, yet GuruFocus assigns a GF Score of 87 indicating modest undervaluation. While profitability remains high, investors are advised to monitor financial strength and broader market conditions.

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