Heavy losses, layoffs, asset sales! How dire was the situation 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 posted a net loss of €644 million; SABIC incurred a net loss of SAR 24.7 billion (approximately $6.6 billion); and LyondellBasell recorded 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 broke 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’s Losing? Who’s Profiting? SpecialPlastic Vision compiled 2025 financial data for major global chemical giants—presented in one table to reveal the full industry picture: Note: ① LG Chem data reflects operating profit; all other companies report net profit; ② PPG data refers to adjusted EPS; ③ Eurozone-based companies report in euros; 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; GAAP net loss reached $2.4 billion; operating EBITDA plummeted from $2.6 billion in 2024 to just $400 million—a decline exceeding 80%; operating cash flow dropped from $2.9 billion to $1.1 billion, nearly halved. Saudi Basic Industries Corporation (SABIC) generated revenue of SAR 116.5 billion (approx. $31.1 billion) in 2025, down a marginal 1% year-on-year—but posted 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. SABIC disclosed in its financial report that it recorded substantial write-downs on certain assets, while average selling prices for key products also declined—severely compressing profitability. Nevertheless, the company achieved free cash flow of SAR 7.2 billion, up 17% year-on-year, providing ample financial headroom for future transformation. Covestro reported 2025 sales of €12.942 billion, down 8.7% year-on-year; EBITDA stood at €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 difficult 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 financial report, the company candidly acknowledged that 2025 marked one of the longest downturns ever recorded for the chemical industry, with weak global demand for polyethylene and polypropylene—especially amid persistently high inventory levels in the Chinese market—causing sharp declines in product prices and margins. Notably, LyondellBasell exceeded its 2025 cash improvement target, delivering $800 million in cash improvements versus an original goal of $600 million—and raised its cumulative 2026 target to $1.3 billion.

PPG’s full-year revenue held steady at $15.9 billion, while net profit surged 17% to $1.6 billion.

For the full year 2025, the Group achieved EBITDA of $2.631 billion, up 9.26% year-on-year. Operating profit totaled $1.587 billion, up 15.25%; net profit reached $1.571 billion, up 17%. Net profit margin improved from 8.5% in the prior year to 9.9%. Adjusted net profit amounted to $1.722 billion, down 7.0% year-on-year. Amid a challenging macroeconomic environment, the company reported full-year earnings per share (EPS) of $6.92, and adjusted EPS of $7.58—down 4% year-on-year. EBITDA margin across all business segments stood at 19%. These results reflect strong sales performance driven by our technologically advanced products and powerful brands, with record achievements across multiple business areas—including aerospace coatings, protective & marine coatings, and packaging coatings. In 2025, we demonstrated exceptional adaptability amid a challenging macroeconomic backdrop: sales volume and selling prices both rose across all four quarters, delivering 2% organic sales growth. We generated $1.9 billion in operating cash flow, achieving a free cash flow yield of 5%. During the year, we repurchased approximately $790 million worth of shares—about 3% of our outstanding shares. Combined with dividends, we returned $1.4 billion to shareholders in 2025. PPG’s Q4 2025 Factors Impacting Operating Performance PPG’s net sales for Q4 2025 totaled $3.914 billion, up 5.0% year-on-year. Organic sales rose 3%—the highest quarterly growth achieved this year—driven by broad-based gains across all three business segments. Overall selling prices increased 1% year-on-year, though part of this gain was offset by price reductions under certain index-linked customer contracts. Total sales volume rose 2% compared to Q4 2024. Net sales also included a 4% benefit from foreign exchange translation and a 2% reduction due to business divestitures. Sales growth was primarily driven by aerospace coatings, protective & marine coatings, and architectural coatings in Mexico. Meanwhile, market share gains in our industrial coatings segment offset declines in automotive refinish coatings and architectural coatings in Europe and the Middle East. Net sales of automotive OEM coatings rose 6%, marking the second consecutive quarter of growth outpacing industry averages. In aerospace coatings, both Q4 net sales and segment income hit new highs. In Q4 2025, adjusted diluted EPS was $1.51, while reported diluted EPS was $1.34. Across all business segments, operating margin stood at 18%, down 40 basis points year-on-year—mainly attributable to margin improvements in industrial coatings and global architectural coatings, partially offset by lower margins in the performance coatings segment. Net profit totaled $302 million, up 15-fold year-on-year. Adjusted net profit amounted to $341 million, down 9.0% year-on-year.

PPG Industries Reports Q1 Adjusted EPS of $1.83, Surpassing Estimates

Apr 28, 2026

PPG Industries reported Q1 adjusted earnings per share of $1.83 and revenue of $3.93 billion, both exceeding analyst estimates. The company also raised its full-year 2026 EPS guidance to between $7.70 and $8.10.

www.marketscreener.com

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PPG (NYSE: PPG) sees Q1 EPS above guidance, signals flat-to-low Q2 growth

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PPG Beats Quarterly Profit and Revenue Estimates on Pricing Strength

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PPG Industries Reports Q1 Adjusted EPS of $1.83, Surpassing Estimates

2026-04-28

PPG Industries Q1 Earnings Exceed Estimates

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Earnings call transcript: PPG Industries beats Q1 2026 EPS expectations despite stock dip