Materials
The content of this section is not part of the statutory audit of the annual financial statements but has undergone a separate limited assurance by our auditor.
The content of this section is voluntary, unaudited information, which was critically read by the auditor.
The Materials segment comprises the Performance Materials and the Monomers divisions. Together, these divisions have one of the world’s largest production capacities for high-performance plastics and precursors for processing industries. With its broad portfolio of large-volume monomers and basic polymers along the isocyanate and polyamide value chains, the Monomers division follows a lean and cost-optimized approach. The Performance Materials division offers innovative and customized solutions in engineering plastics, polyurethanes, thermoplastic polyurethanes and special plastics. Close cooperation with customers, especially with regard to sustainable product developments, generates additional value.
At a glance
€1,575 million
EBITDA before special items
2024: €1,805 million
€1,054 million
Segment cash flow
2024: €766 million
In the Materials segment, declining prices and negative currency effects compared with the previous year led to a sales decline in both operating divisions. Sales amounted to €12,742 million, a decrease of €768 million.
|
Materials |
Performance Materials |
Monomers |
|---|---|---|---|
Volumes |
0.8% |
0.2% |
1.5% |
Prices |
–3.7% |
–3.3% |
–4.1% |
Currencies |
–2.8% |
–3.0% |
–2.5% |
Portfolio |
0.0% |
–0.1% |
– |
Sales |
–5.7% |
–6.2% |
–5.2% |
Both operating divisions recorded price declines in almost all regions. Prices decreased in the Performance Materials division, especially in the polyurethane systems and engineering plastics business areas. In the Monomers division, prices fell for MDI in particular.
Currency effects, largely relating to the U.S. dollar and the Chinese renminbi, further dampened sales performance in the segment.
The segment's increase in volumes was mainly due to higher sales volumes of MDI. Both operating divisions increased volumes in the Asia Pacific and Europe regions.
EBITDA before special items for the Materials segment was considerably below the prior-year level. This was mainly due to lower contribution margins in both operating divisions due to price and currency effects. Lower fixed costs in the Monomers division only partially offset the decline in earnings, while higher fixed costs in the Performance Materials division burdened overall performance.
The segment’s EBITDA included special charges totaling €73 million. These resulted above all in relation to adapting the production structure at the Verbund site in Ludwigshafen, Germany. The prior-year figure had included special income from a contractually agreed one-time payment.
Segment cash flow for the Materials segment was considerably above the figure for the previous year. This was due to a significant improvement in the Monomers division, in particular as a result of a reduction in inventories compared to a buildup of inventories in the previous year. Reduced investments as a result of the startup of the hexamethylenediamine (HMD) plant in Chalampé, France, also boosted cash flow in the Monomers division. Cash flow in the Performance Materials division was slightly below the prior-year level, with lower EBITDA mainly offset by positive working capital effects.
Million € |
|
2025 |
2024 |
+/– |
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sales to third parties |
|
12,742 |
13,510 |
–5.7% |
||||||||||
of which Performance Materials |
|
6,425 |
6,848 |
–6.2% |
||||||||||
Monomers |
|
6,316 |
6,661 |
–5.2% |
||||||||||
Intersegment transfers |
|
778 |
825 |
–5.7% |
||||||||||
Sales including transfers |
|
13,520 |
14,335 |
–5.7% |
||||||||||
EBITDA before special items |
|
1,575 |
1,805 |
–12.8% |
||||||||||
Special items in EBITDA |
|
–73 |
–37 |
–99.5% |
||||||||||
EBITDA |
|
1,502 |
1,769 |
–15.1% |
||||||||||
EBITDA margin before special items |
% |
12.4 |
13.4 |
. |
||||||||||
Depreciation and amortizationa |
|
867 |
830 |
4.4% |
||||||||||
EBIT before special items |
|
722 |
987 |
–26.9% |
||||||||||
Special items in EBIT |
|
–87 |
–48 |
–79.6% |
||||||||||
Income from operations (EBIT) |
|
635 |
939 |
–32.4% |
||||||||||
Investments including acquisitionsb |
|
940 |
1,139 |
–17.5% |
||||||||||
Segment cash flow |
|
1,054 |
766 |
37.7% |
||||||||||
Assets (December 31) |
|
9,226 |
10,135 |
–9.0% |
||||||||||
Research and development expenses |
|
184 |
180 |
1.9% |
||||||||||
|
||||||||||||||
Materials – sales by region
By location of customer
