Evonik Industries has delivered on its 2025 profit promise, hitting its earnings target and standing firm on its 2026 outlook despite falling sales and mounting market pressure.

The German chemicals group confirmed it achieved adjusted EBITDA of €1.87 billion for fiscal 2025 — in line with its forecast of around €1.9 billion and matching the preliminary figures released on February 5. For 2026, the company continues to project adjusted EBITDA in a range of €1.7 billion to €2.0 billion.

Sales, however, slipped 7 percent year-on-year to €14.1 billion. Still, Evonik generated a strong free cash flow of €695 million, driving a cash conversion rate of 37 percent — at the top end of its 30 to 40 percent target range. Net income climbed to €265 million, up from €222 million the previous year.

Looking ahead, Evonik has set its sights on improving capital efficiency. The group is targeting a medium-term return on capital employed (ROCE) of 11 percent. In 2025, ROCE stood at 6.1 percent, down from 7.1 percent in 2024.

Revenue in the Advanced Technologies segment declined 2 percent to €5.97 billion, dragged down by lower selling prices and unfavorable currency effects, though volumes edged up slightly.

Animal Nutrition posted modest revenue growth as higher volumes offset price declines that intensified in the second half of the year. Organics benefited from stronger demand, particularly for high-performance plastics used in 3D printing, membranes and foams. Crosslinkers, however, faced significant price pressure amid intensifying competition.

Inorganics sales fell due to slightly lower volumes and negative currency movements, while prices remained largely stable.

Adjusted EBITDA for the segment dropped 8 percent to €944 million, primarily due to pricing pressure and currency headwinds. The adjusted EBITDA margin narrowed to 15.8 percent from 16.8 percent a year earlier.

The Custom Solutions segment reported a 4 percent revenue decline to €5.49 billion, as weaker volumes and currency effects outweighed slightly improved selling prices.

In Additives, demand softened for polyurethane foam additives, consumer durables, and paints and coatings applications. Oil Additives delivered modest volume growth, but overall revenues in the division fell significantly due to volume and currency pressures despite stable pricing.

The Care division held steady, with slightly higher prices balancing largely unchanged volumes.

Segment adjusted EBITDA fell 7 percent to €909 million, reflecting lower volumes and adverse currency impacts. The adjusted EBITDA margin eased to 16.6 percent from 17.0 percent the previous year.

Despite headwinds across key businesses, Evonik has kept earnings within target — and is betting on disciplined capital management and shareholder returns to drive its next phase of performance.