Evonik Industries (EVK) Q3 2026 earnings summary

Executive summary

• Q3 sales rose 13% YoY to €3,825m and adjusted EBITDA increased 40% to €629m, with margin expanding to 16.4%.

• FY 2026 adjusted EBITDA is expected in the upper half of the €2.0–2.2bn guidance range; 2026 ROCE guidance is above 8%, with a ~11% target by 2029.

• Strategy focuses the portfolio and lowers capital intensity; management declined to negotiate on the BASF approach based on information received so far, while planning a confidential exchange.

Financial highlights

• Q3 adjusted EBIT rose 97% to €389m; adjusted net income increased 158% to €330m and adjusted EPS was €0.71.

• 9M sales grew 4% to €11,144m; adjusted EBITDA rose 14% to €1,734m and adjusted EBIT increased 31% to €994m.

• 9M reported net income fell 37% to €156m from €247m, mainly reflecting structural-measure expenses.

• Q3 free cash flow was €369m versus €300m; 9M free cash flow more than doubled to €601m from €284m.

Outlook and guidance

• FY 2026 free cash flow is expected at ~€850m, with cash conversion near 40%, versus 37% in 2025.

• FY 2026 ROCE guidance was raised to >8%, compared with 6.1% in 2025; Q4 earnings are expected to grow YoY despite normal seasonality.

• FY investment cash outflows are expected at ~€750m; adjusted D&A is expected slightly below 2025’s €1,013m.

• FY adjusted tax rate is expected near 20%, revised from ~25%; the 2027 tax rate is expected at ~25%.