Evonik Industries (EVK) Company presentation summary

Financial performance and outlook

• Achieved Q2 2026 adjusted EBITDA of €630m, up 24% year-over-year, driven by strong Advanced Technologies performance.

• Free cash flow in Q2 2026 reached €49m, a significant improvement from -€211m in Q2 2025, supported by better earnings and lower bonus payouts.

• FY 2026 EBITDA guidance raised to €2.0–2.2bn, with sales expected around €15bn and ROCE slightly above the prior year.

• Cash conversion rate target for FY 2026 confirmed at ~40%.

• Net financial debt increased to €3,620m by June 2026, mainly due to dividend payments, with leverage stable at 1.8x.

Strategic initiatives and portfolio

• Portfolio structured into Custom Solutions and Advanced Technologies, each with distinct roles and KPIs to drive growth and operational excellence.

• Focus on three innovation growth areas: biosolutions, circular economy, and energy transition.

• Sustainable innovation targeted to deliver €1.5bn additional sales by 2032 at margins above 20%.

• Next Generation Solutions now represent 48% of sales, aiming for over 50% by 2030.

• Regional sales balance targeted, with increased capital allocation to Asia and a local-for-local production approach.

Operational efficiency and cost management

• Efficiency program extended to 2029, targeting an additional reduction of ~3,200 FTEs and €400m gross savings, mainly from personnel costs.

• Ongoing business optimization programs in amino acids, high performance polymers, silica/silanes, and other segments to secure competitiveness and deliver savings.

• Strict net working capital management and disciplined capex underpin improved free cash flow.