FWB:EVK

Evonik Industries AG confirmed it met its 2025 profit guidance and reaffirmed its earnings outlook for 2026.

The company reported adjusted EBITDA of €1.87 billion for 2025, in line with its forecast of around €1.9 billion. Sales declined 7% to €14.1 billion, while net income increased to €265 million. Free cash flow reached €695 million, supporting a cash conversion rate of 37%.

Evonik expects adjusted EBITDA between €1.7 billion and €2.0 billion in 2026 and proposed a dividend of €1.00 per share for 2025.
Evonik announced a new, more flexible dividend policy while confirming it met its earnings guidance for 2025. Starting with the 2026 financial year, Evonik will target an annual shareholder distribution of 40–60% of adjusted net income, replacing the previous fixed approach. As a transition, the company plans to pay a dividend of €1.00 per share for 2025, down from €1.17 previously, implying a dividend yield of about 7%.

Evonik reported adjusted EBITDA of €1.874 billion for 2025, in line with guidance, despite sales declining around 7% year on year to €14.1 billion. Strong cash generation supported a free cash flow of €695 million and a cash conversion rate at the top of the target range. Net income rose to €265 million.

For 2026, Evonik expects adjusted EBITDA between €1.7 and €2.0 billion, citing a challenging economic environment. Management said the new dividend policy aims to balance shareholder returns with financial flexibility, investment capacity, and further deleveraging.
Evonik reports weak third quarter amid sluggish demand

Evonik Industries AG announced a 22% year-on-year decline in third-quarter adjusted EBITDA to €448 million, in line with prior guidance. Revenue dropped 12% to €3.39 billion, reflecting lower sales volumes, the sale of the superabsorbents business in 2024, and unfavorable currency movements. The adjusted EBITDA margin fell to 13.2% from 15.1% last year.

CEO Christian Kullmann said the expected September recovery “failed to materialize,” though he emphasized that long-term strategic goals remain intact. CFO Claus Rettig noted that despite current headwinds, adjusted full-year targets remain achievable, with EBITDA guidance reaffirmed at around €1.9 billion for 2025. Free cash flow for the quarter was €300 million, supported by disciplined cost and investment control.

Evonik’s restructuring program, **Tailor Made**, continues to progress, with 90% of business lines set to be reorganized by year-end. The company highlighted efficiency gains from streamlined management and reduced personnel costs.

By segment, **Advanced Technologies** revenue fell 6% to €1.45 billion and EBITDA dropped 32% to €202 million as planned maintenance and weak demand weighed on results. **Custom Solutions** revenue declined 9% to €1.34 billion, while EBITDA decreased 25% to €215 million due to lower volumes, particularly in additives for polyurethane foams and coatings.

For full-year 2025, Evonik expects continued weak demand but anticipates free cash flow remaining “attractive.” Capital expenditure will total about €750 million, and return on capital employed is projected to come in slightly below the 2024 level of 7.1%.