Evonik has significantly boosted its 2026 earnings forecast after a stronger-than-anticipated second quarter, with supply chain disruptions connected to the Middle East conflict forming a temporary raise for main businesses.
The German specialty chemicals group reported adjusted EBITDA of €630 million in the second quarter, up 24% year on year and above market expectations. In June, Evonik had forecast adjusted EBITDA among €600 million and €650 million but has now advanced its full-year guidance to between €2.0 billion and €2.2 billion, compared with its earlier forecast of €1.7 billion to €2.0 billion. The company recorded adjusted EBITDA of around €1.9 billion in 2025.
“We are experiencing a warm summer rain,” mentioned Chief Executive Officer Christian Kullmann. “But unfortunately, this does not change the fundamental challenges for our industry.”
The company stated supply bottlenecks, mainly outside Europe, have advantaged numerous of its businesses by restricting competition from Asian manufacturers. Disruptions to worldwide shipping routes, mainly around the Arabian Peninsula, have impacted competitors’ access to raw materials and assisted demand for Evonik products.
In spite of the short-term profits, Evonik is persisting its aim to decrease costs and improve competitiveness. The company is broadening its efficiency program “Evonik Tailor Made”, which will now include further workforce reductions.
Between 2024 and 2026, the program and additional ventures within operating organizations will cut around 2,800 jobs. Since the begin of 2026, worker numbers have already fallen by nearly 700. The latest extension will result in an additional reduction of about 3,200 positions between 2027 and 2029.
Second-quarter revenue raised 11%, assisted by a 7% rise in both sales volumes and prices. Net income reached €84 million, as compared with €120 million in the same duration last year. Free cash flow improved considerably to €49 million, as compared with a negative €211 million in the second quarter of 2025.
Evonik maintained its goal of attaining a cash conversion rate of around 40% in 2026, following 37% in 2025.
“We need to improve our debt ratios to form more room to maneuver in the future,” stated Michael Rauch, the company’s Chief Financial Officer since May 1. “This strong quarter is supporting us obtain that.”
Evonik’s Advanced Technologies segment was the most powerful performer, taking advantage of supply constraints impacting Asian competitors.
Sales in the segment increase 9% to €1.647 billion in the second quarter of 2026, driven by higher volumes throughout all business and progressed pricing, mainly in Animal Nutrition. Currency headwinds and other factors restricted the overall growth.
The Animal Nutrition business saw a considerable development, supported by higher volumes and stronger prices for vital amino acids. The company related this momentum partly to uncertainty and supply shortages connected to disruptions round the Strait of Hormuz.
The Organics business also delivered sturdy growth, with crosslinkers advantaging from competitors’ supply challenges. Demand for high-performance polymers improved, leading to further capacity enlargement. The Inorganics business recorded barely higher sales, assisted by increased demand for precipitated silicas.
Adjusted EBITDA in Advanced Technologies climbed 25% to €333 million, driven by higher volumes, stronger pricing and advanced manufacturing capacity utilization. The adjusted EBITDA margin raised to 20.2% from 17.6% a year in earlier.
The Custom Solutions segment mentioned a 4% increase in second-quarter sales to €1.422 billion, supported by higher volumes and pricing. Negative currency impacts and other factors restricted growth.
The Additives business recorded strong demand for polyurethane foam additives, consumer applications, paints and coatings products, and oil additives. Higher selling prices supported lift overall sales.
The Care business stayed widely stable as compared with the previous year.
Adjusted EBITDA for Custom Solutions increased 7% to €271 million, at the same time as the segment’s adjusted EBITDA margin improved to 19.1% from 18.6% in the prior-year.
Evonik stated the second-quarter overall performance shows the strength of its portfolio, but warned that structural pressures facing through the chemical industry stay unresolved.
