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

SpecialPlastics Vision compiled 2025 financial performance data for major global chemical companies—presented in a single table for an industry-wide overview: Note: ① LG Chem’s figure represents operating profit; all other companies report net profit; ② PPG’s figure reflects adjusted earnings per share (EPS); ③ Eurozone-based companies report in euros; all others in U.S. dollars. Hotspots of Loss: Who Fell the Hardest? Dow Chemical reported full-year 2025 net sales of $40 billion, down 7% year-on-year; GAAP net loss of $2.4 billion; operating EBIT fell sharply from $2.6 billion in 2024 to $0.4 billion—a decline exceeding 80%; operating cash flow dropped from $2.9 billion to $1.1 billion, nearly halved. SABIC (Saudi Basic Industries Corporation) posted 2025 revenue of SAR 116.5 billion (approx. USD 31.1 billion), down 1% year-on-year—but recorded a net loss of SAR 24.7 billion (approx. USD 6.6 billion). This massive loss stems not primarily from operational deterioration but rather from large-scale asset impairments. SABIC disclosed in its financial statements that it performed substantial write-downs on certain assets, while average selling prices for key products also declined—both factors severely compressing profitability. 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 reported 2025 sales of €12.942 billion, down 8.7% year-on-year; EBITDA of €740 million, down 30.9%; and a net loss of €644 million—worsening from a €266 million loss 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 USD 30.153 billion, down 10% year-on-year; and a net loss of USD 738 million. In its financial report, the company acknowledged that 2025 marked one of the longest downturns ever recorded in the chemical industry, with weak global demand for polyethylene and polypropylene—especially in China, where inventory levels remain persistently high—driving sharp declines in product prices and margins. Notably, LyondellBasell exceeded its 2025 cash improvement target, achieving USD 800 million in cash improvements (vs. an original target of USD 600 million), and raised its cumulative 2026 target to USD 1.3 billion. Even under extreme adversity, the company delivered positive operating cash flow of USD 2.3 billion, with a cash conversion rate as high as 95%. Countercyclical Breakthrough: Who Grew Amid the Winter? Against the backdrop of widespread losses among global chemical giants, BASF delivered a comparatively strong performance in 2025: sales of €59.657 billion, down 3% year-on-year—but net income attributable to shareholders reached €1.313 billion, up 118% year-on-year, more than doubling from €602 million in 2024. BASF’s resilience stems from two pillars: first, its global leadership position in MDI affords significant pricing power; second, sustained investment in emerging markets such as China. The company emphasized in its financial report that structural adjustments and cost-cutting initiatives at its Ludwigshafen site are progressing steadily, with cumulative cost savings expected to reach €2.1 billion by end-2026.

PPG’s Financial Report | In H1 2026, PPG posted $8.425 billion in revenue (up 7% YoY) and $821 million in profit (essentially flat YoY).

As China’s coatings industry grapples with structural adjustment anxieties and price-driven competition amid the opening year of the country’s 15th Five-Year Plan, global coatings leader PPG presented a semi-annual report characterized by “steady revenue growth and modest profit adjustment”—demonstrating an alternative approach to navigating cyclical turbulence. On July 28, PPG released its Q2 and first-half 2026 financial results: net sales totaled $8.425 billion (approx. RMB 61 billion), up 7% year-on-year; net income attributable to shareholders amounted to $821 million (approx. RMB 5.94 billion), with a net profit margin of 9.74%. Although adjusted net income for Q2 declined 1% year-on-year to $500 million, beneath this apparent “temperature differential” between revenue growth and profit pressure lies the strategic depth of this century-old enterprise—actively reshaping its business structure and shifting its growth engine. Amid a complex and volatile global macroeconomic environment, PPG achieved organic growth of 4% in H1 2026—outperforming industry benchmarks by 300 basis points—delivering a highly instructive case study in corporate transformation. NO.1 “Two Hot, One Cold”: Divergence Conceals Structural Shifts Breaking down PPG’s three core business segments reveals a clear “two-up, one-down” growth pattern—highlighting a visible shift in growth drivers. Architectural Coatings: Latin America Leads; Pricing Power Realized. Global architectural coatings posted the strongest growth across all segments, with net sales up 8% and organic growth of 2%. Robust performance in Latin America and modest recovery in the EMEA region formed a “dual support,” while a 3% increase in selling prices lifted EBITDA margin by 100 basis points to 19.4%. This signals accelerating synergy between cost pass-through and expense control. Industrial Coatings: Market Share Capture; The “Invisible Champion” Emerges. This segment was the most impressive performer this quarter. A 5% volume increase solidified industrial coatings as the undisputed “growth ballast.” Specifically, automotive OEM coatings outperformed global auto production by approximately 500 basis points due to market share gains; packaging coatings achieved over 20% growth on top of cumulative volume gains over the past two years—proving that the “technology-for-market-share” strategy is moving from blueprint to reality: when customers proactively embrace cutting-edge technology, market share gains no longer hinge on price wars. Performance Coatings: Aerospace Leads, Refinish Paint Drags Margin. This segment posted organic growth of 3%, with aerospace business continuing to lead with double-digit growth and order backlog holding near $300 million—serving as PPG’s “profit moat.” However, segment margin slipped from 25.7% to 22.7%, primarily dragged down by automotive refinish paint—due mainly to slower-than-expected recovery in insurance claims processing, resulting in double-digit volume declines. This contrast reveals an industry “cold fact”: the pace of recovery along end-user service chains can sometimes be even harder to forecast than fluctuations in manufacturing demand. NO.2 China: From “World’s Factory” to “Innovation Source” PPG’s strategic footprint in China has long transcended simple capacity expansion. Through its strategic moves and publicly available information, its deeper logic—“leveraging technology to win markets” and “defining global standards through localized innovation”—is becoming increasingly evident. Betting on the New Energy Vehicle Sector: Evolving from “Coating Supplier” to “Color Definer.” Its joint “Digital Color Lab” with Chery has entered substantive operations; in 2025, PPG partnered with Xiaomi Auto as the inaugural collaborator for its “Design 100 Colors in 3 Years” initiative—deeply integrating color science with AI technologies, transforming coatings from mere “surface layers” into “gateways to user experience.”

PPG Industries Stock Q2 Earnings Miss Signals Margin Pressure

May 13, 2026

PPG Industries reported a 12% year-over-year decline in Q2 2025 earnings per share to $1.98, citing margin compression across operating segments. This miss highlights broader headwinds in construction, automotive, and industrial markets.

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