Evonik Announces Q1 2026 Results

Evonik achieved its operating profit target in the first three months of 2026 despite a very difficult business and economic environment. At €475 million, adjusted EBITDA slightly exceeded Evonik’s earnings forecast of around €450 million. 

The war in the Middle East has resulted in price spikes for energy and important raw materials, and significantly reduced supply chain security. However, in the short term, customers appear to be stockpiling, which is expected to provide a tailwind in the second quarter as well.

At €3.43 billion, Evonik’s sales in the first quarter were 9% below the prior-year results. More than half of this decline is due to unfavorable exchange rates. 

Sales volumes fell by 2%, while prices dropped by 1%. The adjusted EBITDA margin declined by 0.9 percentage points to 13.9%. 

As a result of the outbreak of war in the Middle East, Evonik has recorded higher sales volumes in certain businesses since March, presumably due to customers engaging in pre-buying. 

Sales in the Advanced Technologies segment declined by 9% to €1.45 billion in the first quarter of 2026. This was due to noticeably negative currency effects as well as slightly lower volumes and prices.

In the Custom Solutions segment, revenue fell by 7% to €1.33 billion in the first quarter of 2026. With selling prices remaining almost stable, this resulted from noticeably negative currency effects and lower volumes.

In the Additives business, additives for polyurethane foams and consumer durables recorded slightly higher volume demand. Oil additives also recorded a slight increase in volumes. Overall, sales in the Additives division declined, mainly due to currency effects. 

In the first quarter of 2026, net income was €125 million, compared with €233 million in the first quarter of 2025. Free cash flow was €183 million, nearly on par with the previous year (€195 million).

“The first quarter was not good, but it was better than we expected, especially towards the end,” said Claus Rettig, who had assumed operational responsibility in the finance department until April 30. “This gives us a little more confidence compared to the beginning of the year.”

The second quarter is likely to be the strongest quarter in 2026, as higher inflation rates in the second half of the year are likely to negatively affect consumption, investment, and consequently demand for Evonik products. Additionally, energy and raw material costs are projected to be higher than initially assumed.

Michael Rauch has been appointed Chief Financial Officer effective May 1. At the Annual General Meeting to be held on June 3, Rauch will introduce himself to Evonik shareholders personally. Rettig will again fully concentrate on his position as President of the region Asia-Pacific.

Despite the increased uncertainties, Evonik confirms its profit forecast for 2026 and continues to expect adjusted EBITDA of between €1.7 billion and €2.0 billion.