The delisting of Covestro from public markets is now a foregone conclusion. Following its acquisition vehicle XRG crossing the 95.1% ownership threshold, the squeeze-out procedure is advancing on a fixed timetable. The final decision will be made at the Annual General Meeting scheduled for May 19, 2026.
This impending exit is the dominant factor for the company’s equity. Trading near its 52-week high and exhibiting an annualized 30-day volatility below 3%, the share price has decoupled from operational performance. It now moves solely in anticipation of the expected cash compensation, the value of which is currently being determined by an independent auditor.
Leadership in Transition Amid Operational Headwinds
Significant changes are underway in the executive suite. Chief Executive Officer Markus Steilemann has decided not to seek a contract renewal, while Chief Financial Officer Christian Baier will depart in September. The supervisory board is tasked with filling both vacancies.
These leadership shifts come during a challenging operational period. The 2025 fiscal year proved difficult, with EBITDA plunging nearly 31% to €740 million. Revenue declined by 8.7% to €12.9 billion, pressured by falling selling prices and structural overcapacity within the industry. Shareholders will not receive a dividend for the fourth consecutive year. Management’s guidance for 2026 suggests operating results will merely match the weak prior-year level.
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Strategic Investments and Cost-Cutting Continue
Despite the pending delisting, Covestro continues to execute its strategic agenda. The “STRONG” cost-saving program has delivered approximately €275 million in savings by the end of 2025, with a target of €400 million by 2028.
Concurrently, the company is expanding its asset base through acquisition. It is taking over two production sites for HDI derivatives from Vencorex, located in Thailand and Texas. This purchase is slated for completion in the first half of 2026.
Investment in future technologies also remains a priority. A contract has been signed with the Fraunhofer Institute UMSICHT to operate a pilot plant for so-called “smart pyrolysis.” This innovative process converts polyurethane rigid foam waste into re-aniline for MDI production, potentially reducing the carbon footprint by up to 40% compared to conventional methods. The facility, with an annual capacity of 2,000 tonnes, is projected to be operational by 2028.
The completion of the squeeze-out will mark the end of the stock market journey for this former Bayer subsidiary. Thereafter, Covestro will operate entirely under the ownership of Abu Dhabi’s state oil company, ADNOC, for whom this takeover represents the largest acquisition in its history to date.
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