Evonik has sharply raised its full-year 2026 earnings forecast after delivering a stronger-than-expected second-quarter performance, driven by higher sales volumes, firmer pricing and continued cost reductions.
Based on preliminary figures, the specialty chemicals company expects adjusted EBITDA of between €600 million and €650 million for the second quarter, up about 23% from €509 million a year earlier at the midpoint. The result also comfortably exceeds the company's May guidance of at least €550 million.
The earnings boost was supported by stronger volumes, improved pricing and ongoing efficiency measures. Evonik's Advanced Technologies segment also benefited from supply chain disruptions affecting Asian competitors, where raw material shortages have constrained production.
The company cautioned, however, that this temporary advantage is expected to fade later this year as global shipping conditions normalize following the reopening of the Strait of Hormuz, leaving uncertainty over second-half performance. In contrast, Evonik expects positive momentum in its Animal Nutrition business to continue into the third quarter.
For the first six months of 2026, adjusted EBITDA is expected to total around €1.1 billion, according to preliminary figures.
Reflecting the stronger performance, Evonik has significantly upgraded its full-year outlook. The company now expects adjusted EBITDA of €2.0 billion to €2.2 billion, compared with its previous guidance of €1.7 billion to €2.0 billion. Evonik reported adjusted EBITDA of around €1.9 billion in 2025.
The company maintained its target of achieving a cash conversion rate of around 40% for the year, compared with 37% in 2025. Free cash flow in the second quarter is also expected to improve significantly from the negative €211 million reported in the same period last year.
Alongside the stronger financial performance, Evonik is pressing ahead with a broad restructuring program as it responds to ongoing structural challenges across the chemical industry.
Following its June 18 announcement, the company is expanding its "Evonik Tailor Made" transformation program with additional structural and efficiency measures across administrative and operating functions.
The initiative, together with other business-line efficiency programs, includes the elimination of 2,800 jobs between 2024 and 2026, with a further 3,200 positions set to be cut between 2027 and 2029. Evonik said the measures are designed to create a leaner cost base and strengthen its long-term competitiveness.
