Evonik Industries (EVK) Q1 2026 earnings summary

Executive summary

• Adjusted EBITDA for Q1 2026 reached €475 million, slightly above expectations, driven by improved March performance, self-help measures, and optimization programs, despite a challenging environment and negative currency effects.

• Free cash flow was €183 million, nearly matching the prior year despite weaker earnings, supported by customer payments, prepayments, and co-financing.

• Sales declined 9% year-over-year to €3,427 million, mainly due to currency headwinds and slightly lower volumes and prices.

• Net income dropped to €125 million from €233 million in Q1 2025; adjusted net income was €158 million, down 43%.

• CEO contract extended to 2030 and new CFO appointed, signaling stability and transformation focus.

Financial highlights

• Q1 2026 sales were €3,427 million, down 9% year-over-year; adjusted EBITDA fell 15% to €475 million.

• Adjusted net income dropped 43% to €158 million; adjusted EPS was €0.34, down from €0.59.

• Free cash flow was €183 million, supported by customer prepayments and contract terminations.

• Net financial debt decreased to €3,140 million at quarter-end.

• Capex increased to €224 million from €190 million in Q1 2025.

Outlook and guidance

• Full-year 2026 adjusted EBITDA guidance confirmed at €1.7–2.0 billion, with cash flow conversion target of 40%.

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

• Sales expected between €13.5–14.5 billion; capex to remain stable at ~€750 million.

• Management anticipates a stronger first half, with potential demand drop in the second half due to pre-buying and inflation.

• ROCE expected to remain stable at 2025 level (6.1%).