Weak third quarter

Essen, Germany.  In a climate of great uncertainty and weak demand, Evonik achieved adjusted EBITDA of € 448 million in the third quarter of 2025 – 22 per cent lower than the strong result of the previous year (Q3 2024: € 577 million). This result is within the range of 420 to 460 million euros communicated on 25 September.

“The expected recovery in September failed to materialise,” says Evonik CEO Christian Kullmann. “In the short term, that is painful, but in the long term it will not throw us off balance.”

Revenue fell by 12 per cent to € 3.39 billion compared to last year (Q3 2024: €
3.83 billion). Although prices remained virtually stable, half of the decline in turnover was attributable to lower sales volumes. The sale of the superabsorbents business in August 2024 and unfavourable exchange rates, particularly the weak US dollar, also contributed to the decline. The adjusted EBITDA margin was significantly lower at 13.2 per cent (Q3 2024: 15.1 per cent).

Free cash flow amounted to € 300 million (Q3 2024: € 357 million), maintaining the positive trend for the year. A strict investment policy and efficient management of net working capital paid off.

“Many factors are currently working against us, which is why we had to adjust our expectations to the new reality in September,” says Claus Rettig, who has been responsible for finance since 18 September. “Our revised targets for this year are achievable, and our focus is on the successful long-term implementation of our growth and cost-saving programmes.”

The largest of these is the Evonik Tailor Made efficiency programme. This is proceeding according to plan and the benefits – fewer hierarchical levels and lower personnel costs – are already becoming apparent. By the end of this year, 90% of all departments will have switched to their new structure.

The new, differentiated management of the chemical business is also having a positive effect. With a clear focus on pricing, Evonik was able to increase prices by an average of 2 per cent in the Custom Solutions segment. In the Advanced Technologies segment, where efficient utilisation of plants is key, volumes fell by only 2 per cent – a strong performance in a weak market.

The new, differentiated management of the chemical business is also having a positive effect. With a clear focus on pricing, Evonik was able to increase prices by an average of 2 per cent in the Custom Solutions segment. In the Advanced Technologies segment, where efficient utilisation of plants is key, volumes fell by only 2 per cent – a strong performance in a weak market.

Evonik expects demand to remain low until the end of 2025, with adjusted EBITDA for the full year expected to be around € 1.9 billion (2024: € 2.07 billion). The cash conversion ratio is estimated to be between 30 and 40 per cent (2024: 42 per cent). Free cash flow for the full year will be at an attractive level (2024: € 873 million). Capital expenditure will amount to approximately € 750 million (2024: € 840 million). Return on capital employed (ROCE) will be slightly below last year's 7.1 per cent.


Development of the chemical segments

Advanced Technologies

In the third quarter of 2025, sales in the Advanced Technologies segment fell by 6 per cent to € 1.45 billion. This decline was due to slightly lower sales volumes and prices and negative exchange rate effects.

Revenue from the Animal Nutrition business line declined significantly due to lower volumes, expected price decreases for methionine and unfavourable exchange rate effects. Inorganics sales remained below last year's level, mainly due to lower volumes and exchange rates. Organics, on the other hand, showed slight sales growth, with strong demand for high-performance polymers (e.g. membranes). Despite continued competitive pressure, Crosslinkers increased their sales volumes.

Advanced Technologies' adjusted EBITDA fell by 32 per cent to €  202 million, mainly due to costs for planned overhauls. The adjusted EBITDA margin fell from 19.3 per cent last year to 14.0 per cent.

Custom Solutions

In the third quarter of 2025, revenue in the Custom Solutions segment fell by 9 per cent to € 1.34 billion. This decline was due to lower sales volumes and negative exchange rate effects, although slightly higher sales prices partially offset the decline.

At Additives, demand for additives for polyurethane foams and durable consumer goods was significantly lower. Sales volumes of additives for the paint and coatings industry also declined. However, demand for oil additives remained stable, with a slight increase in sales prices. All in all, this led to a clear decline in turnover within Additives. Sales at Care also declined due to lower volumes, despite higher sales prices.

Adjusted EBITDA in the Custom Solutions segment fell by 25 per cent to € 215 million, mainly due to weak demand. The adjusted EBITDA margin fell from 19.6 per cent last year to 16.0 per cent.

Evonik: Leading beyond chemistry
Evonik goes beyond the boundaries of chemistry thanks to a combination of innovative strength and leading technological expertise. The chemical company, which operates in more than 100 countries and has its headquarters in Essen, achieved sales of 15.2 billion euros and an operating result (adjusted EBITDA) of 2.1 billion euros in 2024. The common motivation of its approximately 32,000 employees: to offer customers a decisive competitive advantage with tailor-made products and solutions as a superpower for industry – and thus improve people's lives. In all markets. Every day.


Disclaimer
To the extent that we express forecasts or expectations in this press release or make forward-looking statements, these forecasts or expectations may involve known or unknown risks and uncertainties. Actual results or developments may differ depending on changes in the market. Neither Evonik Industries AG nor its group companies are obliged to update the forecasts, expectations or statements in this release.