Essen, Germany. Evonik continued to achieve strong earnings in the third quarter. The company's successful business performance suggests that operating profit for 2026 will likely be in the upper half of the guidance range.
From July to September, adjusted EBITDA rose by 40 percent year-on-year to €629 million, despite continued weak economic growth and geopolitical tensions. In August, Evonik had forecast a figure similar to the level of the second quarter (€630 million).
Evonik has projected an adjusted EBITDA of between €2.0 billion and €2.2 billion for the full year 2026. As things stand, a result in the upper half of this range seems likely. The company also expects earnings to increase in the fourth quarter compared to the same period last year.
"Our strategic positioning is paying off in full right now. We are strong and robust," says Claus Rettig, Chief Executive Officer ad interim. "We are even more optimistic about our outlook. Dragons fly highest in headwinds."
Evonik had already raised its full-year guidance in June. The specialty chemicals company is consistently pursuing its goal of achieving ambitious medium-term targets through better cost structures, a clearly defined portfolio, and focused investments. Among them is a return on capital employed (ROCE) of about 11 percent by 2029. This year, the measure will likely rise to more than 8 percent (2025: 6.1 percent).
As previously announced, the "Evonik Tailor Made" (ETM) efficiency program will be extended until 2029 to significantly reduce costs. In the third quarter, Evonik set aside €313 million for measures related to ETM, such as severance payments. These provisions weigh on net income, which was negative at -€53 million (Q3 2025: €-106 million).
The sale process for Oxeno, Evonik's C4 chemistry, is progressing according to plan. A buyer is expected to be announced in the coming months. Preparations for a possible sale of Syneqt, the operator of the German chemical parks in Marl and Wesseling, have started.
Sales in the third quarter increased 13 percent compared with the prior-year quarter, the biggest quarterly gain since the third quarter of 2022. Sales volumes were 2 percent higher, and prices were up 10 percent. Free cash flow in the third quarter was again strong at €369 million (Q3 2025: €300 million). In the first 9 months of the year, the key figure more than doubled to 601 million, which benefits the reduction of debt. In 2026, Evonik continues to target a cash conversion rate of around 40 percent (2025: 37 percent) and expects free cash flow of about €850 million (2025: €695 million).
"Higher operating profit, significantly better free cashflow and lower net debt, this is how we continuously improve our financial profile, which was recently also underlined by rating company Moody’s", says Chief Financial Officer Michael Rauch. Moody's had raised Evonik’s credit rating by one notch to Baa1 on August 27.
The Advanced Technologies segment in particular was able to present good figures in the third quarter, with adjusted EBITDA rising by an extraordinarily strong 87 percent year-on-year. The segment’s resilient, global positioning as well as efficiency improvements in several large businesses made this success possible, despite the restrictions on global supply chains as a result of the conflict in the Middle East.
Development of the chemical segments
Advanced Technologies:
The Advanced Technologies segment has continued to benefit from its global position, especially since the outbreak of the war in the Middle East. Higher volumes and selling prices increased sales by 19 percent to €1,713 million in the third quarter of 2026. The Animal Nutrition business benefited from higher volumes and improved prices for essential amino acids. Sales increased significantly. In the Organics business, crosslinkers continued to develop positively. Capacity utilization for high-performance polymers was 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 87 percent to €377 million, driven mainly by higher volumes and selling prices and the optimization programs. The adjusted EBITDA margin rose from 14.0 percent in the prior-year quarter to 22.0 percent.
Custom Solutions:
Sales in the Custom Solutions segment rose 4 percent to €1,394 million in the third quarter of 2026. While volumes were unchanged, this was attributable to higher selling prices, mainly to pass on the increase in raw material costs. The rise in sales was held back by other negative effects. The Additives business registered a positive demand trend for products for the paints and coatings industry and oil additives, resulting in higher selling prices. Sales of additives for polyurethane foams and consumer durables were around the prior-year level. Overall, sales rose considerably in the Additives business. In the Care business, sales were on par with the prior-year period.
Adjusted EBITDA improved by 7 percent to €231 million. The adjusted EBITDA margin increased from 16.0 percent in the prior-year period to 16.6 percent.
