Evonik Industries (EVK) Q2 2026 earnings summary

Executive summary

• Q2 2026 delivered the strongest quarterly result in four years, with adjusted EBITDA up 24% to €630 million, surpassing expectations due to strong Advanced Technologies performance and supply chain bottlenecks outside Europe.

• Workforce reduction programs are underway, targeting a total reduction of 2,800 employees by end-2026 and an additional 3,200 by 2029, as part of the extended 'Evonik Tailor Made' efficiency program.

• Free cash flow improved significantly, reaching €49 million in Q2 2026 from -€211 million in Q2 2025, and €232 million in H1 2026.

• Divestments of Oxeno and SYNEQT are progressing, with Oxeno's book value now at €50 million after impairment.

• Innovation and portfolio optimization continue, with investments in biosolutions, catalysts, and membranes for green hydrogen.

Financial highlights

• Q2 2026 sales were €3,893 million, up 11% year-over-year, with both volumes and prices contributing 7% each.

• Adjusted EBITDA margin improved to 16.2% in Q2 and 15.1% in H1; Advanced Technologies margin at 20.2%, Custom Solutions at 19.1%.

• Adjusted EBIT rose 48% year-over-year to €370 million in Q2 2026.

• Adjusted net income for Q2 2026 was €296 million, up 85% year-over-year; adjusted EPS was €0.65.

• Net financial debt at June 30, 2026, was €3,620 million, up from €3,311 million at year-end 2025.

Outlook and guidance

• Full-year 2026 adjusted EBITDA guidance raised to €2.0–2.2 billion (previously €1.7–2.0 billion), with sales expected around €15 billion.

• Cash conversion rate targeted at ~40% for 2026; capex projected at ~€750 million.

• Q3 earnings expected to be similar to Q2, with normalization anticipated in Q4 due to market uncertainties.

• Adjusted tax rate for FY 2026 expected around 25%.

• ROCE expected slightly above prior-year level (2025: 6.1%).