Evonik meets 2025 guidance
Chemical company confirms 2026 earnings outlook
Advertisement
Evonik has met its profit guidance for 2025 and reaffirmed its outlook for 2026. The final results for the fiscal year 2025 confirm the preliminary data published on February 5: The chemicals company achieved an adjusted EBITDA of €1.87 billion, matching its forecast of around €1.9 billion. For 2026, Evonik continues to expect adjusted EBITDA of between €1.7 billion and €2.0 billion.
Evonik also confirms other relevant financial metrics: Sales in 2025 decreased by 7 percent to €14.1 billion compared to the previous year. The cash conversion rate of 37 percent reached the upper end of the target range of 30 to 40 percent, based on a strong free cash flow of €695 million (2024: €873 million). Net income rose to €265 million (2024: €222 million).
In February, the Executive Board announced that starting in fiscal 2026, the annual dividend will be linked to adjusted net income, of which between 40 and 60 percent will be distributed to shareholders. For 2025, the company plans to pay out €1.00 per share as a transition. The Annual General Meeting will vote on the dividend proposal on June 3.
In the medium term, Evonik will intently focus on earning a return on capital employed (ROCE) of 11 percent. In 2025, this key figure was 6.1 percent (2024: 7.1 percent).
Development of the chemical segments
Advanced Technologies: In the Advanced Technologies segment, revenue fell 2 percent to €5.97 billion due to lower selling prices and negative currency effects. Volumes increased slightly.
The Animal Nutrition business achieved slightly higher revenue. While sales volumes were higher, prices declined, especially in the second half of the year. Organics also saw a positive volumes development. Certain high-performance plastics for 3D printing or membranes and foams, for example, benefited from rising demand. Crosslinkers suffered from noticeable price pressure due to increased competition. Overall, higher volumes were not sufficient to fully offset lower selling prices and the negative impact of exchange rate movements. In Inorganics, sales declined due to slightly lower sales volumes and negative currency effects while selling prices remained virtually stable.
Adjusted EBITDA in Advanced Technologies decreased by 8 percent to €944 million, mainly due to lower selling prices and negative currency effects. The adjusted EBITDA margin fell from 16.8 percent in the previous year to 15.8 percent.
Custom Solutions: In the Custom Solutions segment, revenue fell by 4 percent to €5.49 billion due to lower volumes and negative currency effects. Selling prices rose slightly.
In the Additives business, volume demand for additives for polyurethane foams and consumer durables declined, as did products for the paints and coatings industry. Oil Additives achieved slight volume increases. Overall, revenues from Additives declined noticeably despite stable selling prices, mainly due to volume and currency effects. The Care division generated sales at about the same level as in the previous year as prices improved slightly and volumes remained about stable.
At €909 million, adjusted EBITDA in the segment was 7 percent below the prior year. The decline was mainly due to lower volumes and negative currency effects, while selling prices improved. The adjusted EBITDA margin fell to 16.6 percent from 17.0 percent in the previous year.
Other news from the department business & finance
