Essen, Germany. As announced on June 26, Evonik delivered strong earnings in the second quarter. The ongoing conflict in the Middle East caused supply chain bottlenecks, mainly outside Europe, resulting in an economic windfall.
In the second quarter, adjusted EBITDA rose by 24 percent to €630 million. In June, the company had forecast adjusted EBITDA in the range between €600 million and €650 million and significantly raised its guidance for fiscal 2026. Evonik now expects adjusted EBITDA between €2.0 billion and €2.2 billion (previously: €1.7 billion to €2.0 billion). In 2025, Evonik earned around €1.9 billion.
"We are witnessing a warm summer rain," says Chief Executive Officer Christian Kullmann. "But unfortunately, this does not change the fundamental challenges for our industry."
To address these challenges and to strengthen long-term competitiveness, the efficiency program "Evonik Tailor Made" will be extended as announced on June 18. Between 2024 and 2026, the program and certain projects within individual operating businesses will reduce the number of jobs by 2,800. Since the beginning of 2026, the number of employees declined by almost 700 people. The extension entails an additional reduction of around 3,200 positions for the period 2027 to 2029.
Revenue in the second quarter rose by 11 percent. Sales volumes were 7 percent higher, as were prices. Net income amounted to €84 million (Q2 2025: €120 million). Free cash flow in the second quarter was €49 million (Q2 2025: minus €211 million). In 2026, Evonik continues to aim for a cash conversion rate of around 40 percent (2025: 37 percent).
"We want to improve our debt ratios to create more room to maneuver in the future," says Michael Rauch, the company’s Chief Financial Officer since May 1. "This strong quarter is helping us achieve that."
In the Advanced Technologies segment in particular, Evonik is currently benefiting from supply bottlenecks that are restraining Asian competitors, whose raw material purchases are hampered by disruptions in global shipping, especially around the Arabian Peninsula. In the Animal Nutrition business, the positive momentum continues.
Development of the chemical segments
Advanced Technologies:
Since the outbreak of the war in the Middle East, key businesses in the Advanced Technologies segment have benefited from supply bottlenecks affecting Asian competitors. Sales rose 9 percent to €1,647 million in the second quarter of 2026. This was attributable to higher volumes in all areas and an increase in selling prices, especially in the Animal Nutrition business, while negative currency influences and other effects held back the increase. Animal Nutrition benefited from higher volumes and improved prices for essential amino acids. This was mainly related to the situation in the Strait of Hormuz, the resulting uncertainty, and supply shortages on the market. Sales increased considerably. In the Organics business, crosslinkers posted a positive development as a result of competitors’ supply bottlenecks. Capacities for high-performance polymers were ramped up further in response to improved demand. Overall, the Organics business registered a considerable rise in sales. Slightly higher sales were posted by the Inorganics business, which benefited from higher demand for precipitated silicas.
Adjusted EBITDA improved by 25 percent to €333 million, driven mainly by higher volumes and selling prices and improved utilization of production capacity. The adjusted EBITDA margin rose from 17.6 percent in the prior-year quarter to 20.2 percent.
Custom Solutions:
Sales in Custom Solutions rose 4 percent to €1,422 million in the second quarter of 2026. This was attributable to higher volumes and selling prices. However, the rise in sales was held back by negative currency effects and other effects. The Additives business registered higher demand for additives for polyurethane foams and consumer durables. There was also strong demand for products for the paints and coatings industry and oil additives, resulting in higher selling prices. Overall, sales rose considerably in the Additives business. In the Care business, sales were on a par with the prior-year period.
Higher volumes and prices lifted adjusted EBITDA 7 percent to €271 million. The adjusted EBITDA margin increased from 18.6 percent in the prior-year period to 19.1 percent.
