Evonik Industries (EVK) Company presentation summary

Financial performance and outlook

• FY 2025 sales reached €14.1 bn, with an adj. EBITDA of €1.9 bn (13.3% margin) and free cash flow of €695 m (37% conversion rate).

• Q1 2026 adj. EBITDA was €475 m, slightly ahead of expectations, with strong cash generation (FCF €183 m) despite weaker earnings.

• FY 2026 guidance confirmed: adj. EBITDA between €1.7–2.0 bn, targeting ~40% cash conversion.

• Q2 2026 adj. EBITDA expected to be at least €550 m, likely the strongest quarter of the year.

• Net financial debt slightly decreased to €3,140 m, with leverage stable at 1.6x.

Strategic direction and portfolio

• Portfolio structured into Custom Solutions (innovation-driven) and Advanced Technologies (efficiency-driven), each with distinct KPIs and roles.

• Focus on three innovation growth areas: biosurfactants & biotech, design for circularity, and cell culture solutions.

• Sustainable innovation is a key growth driver, targeting €1.5 bn additional sales by 2032 at >20% margin.

• Next Generation Solutions with superior sustainability profile now account for 48% of sales, aiming for >50% by 2030.

• Regional balance targeted, with capital allocation increasingly geared toward Asia.

Capital allocation and shareholder returns

• Capital allocation priorities unchanged: focus on organic growth, disciplined capex (~€750 m), and attractive dividends.

• New dividend policy: €1 per share for FY 2025 (transition year), moving to a 40–60% payout ratio from FY 2026.

• Additional shareholder returns possible after deleveraging, with no M&A planned until 2027.