German specialty chemicals group Evonik surpassed earnings expectations in the first quarter of 2026, at the same time as geopolitical turmoil, inflation pressures and declining demand disturbed global markets.
The company published adjusted EBITDA of €475 million for the quarter, surpassing its own forecast of around €450 million in spite of what it explained as an extremely challenging business climate. The outcome comes as the conflict within the Middle East sends energy and raw material prices surging and disrupts major global trade routes.
“Economic growth depends on the free movement of goods,” stated CEO Christian Kullmann. “This had already been limited through rising protectionism. Now, the conflict within the Middle East is blocking whole trade routes, including further risk.”
Evonik’s first-quarter sales declines 9% year by year to €3.43-billion, with unfavorable exchange rates recordkeeping for more than half of the decline. Sales volumes declined 2%, whilst prices fell 1%. The adjusted EBITDA margin reduced to 13.9% from 14.8% a year earlier.
Net income weakened to €125 million from €233 million within the first quarter of 2025. Free cash flow stayed resilient at €183 million, compared to €195 million a year ago.
Yet signs of a near-term rebound are rising. Since March, Evonik has seen sturdy order volumes in some businesses as clients hasten to stable supplies amid increasing geopolitical tensions. Prices for methionine, a main animal nutrients additive, have also scaled faster than predicted.
The company now anticipates adjusted EBITDA of at the least €550 million within the second quarter, up from €509 million in the same period final year. Evonik stated the recent quarter is probably to be the most powerful of 2026 before inflation and higher prices weigh more heavily on clients spending, investment and industrial demand later in the year.
“The first quarter was not suitable, however it was better than we anticipated, particularly towards the end,” stated Claus Rettig, who had believed operational in the finance branch until April 30. “This gives us a bit more confidence in comparison to the starting of the year.”
Evonik also declared a leadership transition in finance. Michael Rauch have become Chief Financial Officer on May 1 and is ready to presents himself to shareholders at the company Annual General Meeting on June 3. Rettig will return full-time to his role as President of the Asia-Pacific region.
In spite of rising economic uncertainty, Evonik reaffirmed its full-year guidance and persists to forecast adjusted EBITDA among €1.7 billion and €2.0 billion for 2026.
The company also stated that its “Evonik Tailor Made” efficiency drive stays on schedule in its final year, with a total of 1,000 jobs set to be eliminated in 2026 via cost-cutting and operational optimization programs.
