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 disruptions.

• Strategic focus on cost reduction, portfolio optimization, and disciplined capital allocation, with the 'Evonik Tailor Made' program extended to 2029 targeting a total reduction of 6,000 jobs and €400 million in gross savings.

• Free cash flow improved significantly, reaching €49 million in Q2 and €232 million in H1, driven by better earnings and lower bonus payouts.

• Divestments of Oxeno and SYNEQT progressing, with ongoing investments in business optimization and innovation, including biosolutions and green hydrogen membranes.

• Net income for Q2 2026 was €84 million, down from €120 million in Q2 2025, mainly due to impairment losses in the Infrastructure segment.

Financial highlights

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

• Adjusted EBITDA margin improved to 16.2% in Q2 and 15.1% in H1; Advanced Technologies and Custom Solutions segments delivered margins of 20.2% and 19.1%, respectively.

• Adjusted EBIT for Q2 2026 was €370 million, up 48% year-over-year; adjusted net income was €296 million, up 85%.

• Capex for Q2 was €180 million; H1 capex totaled €356 million.

• Net financial debt as of June 30, 2026, was €3,620 million, up €309 million since December 2025, mainly due to dividend payments.

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 the year; capex projected at ~€750 million.

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

• Q3 earnings expected to be similar to Q2, with normalization anticipated in Q4 if supply chains stabilize.

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