Evonik: Adjusted EBITDA in Q1 2026 slightly above expectations

Evonik met and slightly exceeded its own operating profit target in the first quarter of 2026 despite a challenging market environment. Adjusted EBITDA came in at €475 million, above the previously expected figure of around €450 million. Business was weighed down in particular by geopolitical tensions in the Middle East, rising energy and raw material prices, and negative currency effects.

The group’s revenue fell by 9 percent in the first quarter to €3.43 billion. Evonik attributed more than half of the decline to unfavorable exchange rates. Sales volumes fell by 2 percent, while selling prices declined by 1 percent. The adjusted EBITDA margin decreased from 14.8 percent to 13.9 percent. Net income stood at €125 million, compared with €233 million in the prior-year quarter. Free cash flow reached €183 million, remaining almost at the previous year’s level.

Advert

CEO Christian Kullmann pointed to the increasing pressures on international trade. Protectionist measures had already significantly restricted the free movement of goods, and the war in the Middle East was now adding further strain, affecting key transport routes and supply chains.

Since March, Evonik has observed higher sales volumes in some businesses, which the company attributes to customers making stockpiling purchases. For the second quarter, Evonik therefore forecasts adjusted EBITDA of at least €550 million, compared with €509 million in the prior-year quarter. The company expects the second quarter could be the strongest of the current year. For the second half of the year, however, Evonik anticipates pressure from higher inflation rates as well as rising energy and raw material costs.

Despite the increased uncertainties, the group confirmed its full-year forecast. For 2026, Evonik continues to expect adjusted EBITDA of between €1.7 billion and €2.0 billion.

Michael Rauch took over as Chief Financial Officer on May 1, 2026. Claus Rettig, who had temporarily handled operational responsibilities in the finance division until the end of April, will now once again focus fully on his role as President of the Asia-Pacific region.

According to the company, the transformation program “Evonik Tailor Made” is on track in its third and final year. Together with additional optimization measures, around 1,000 jobs are to be cut in 2026.

In the Advanced Technologies segment, revenue fell by 9 percent in the first quarter to €1.45 billion. The decline was driven in particular by negative currency effects as well as slightly lower volumes and prices. Adjusted EBITDA fell by 17 percent to €241 million, while the adjusted EBITDA margin declined to 16.6 percent. High-performance polymers in the Organics business benefited from positive volume demand.

The Custom Solutions segment recorded a 7 percent decline in revenue to €1.33 billion. This was mainly due to negative currency effects and lower sales volumes, while selling prices remained largely stable. Adjusted EBITDA fell by 12 percent to €227 million, and the EBITDA margin declined to 17.0 percent. While demand for additives for polyurethane foams, durable consumer goods, and oil additives improved slightly, revenue in the Care business remained below the prior-year level.

More information: www.evonik.de

Evonik Industries AG, Essen

back to news list