Evonik reports 22% drop in Q3 2025 core profit on weak demand

The anticipated recovery in September failed to materialize,” says Evonik Chief Executive Officer Christian Kullmann

Evonik experienced a weak third quarter in 2025, with a 22% drop in adjusted EBITDA to €448 million and a 12% decline in revenue to €3.39 billion, primarily due to persistently weak customer demand and a challenging market environment.

"The anticipated recovery in September failed to materialize,” says Evonik Chief Executive Officer Christian Kullmann. “In the short term, this is painful. But longer term, it does not throw us off course."

Revenue decreased by 12 percent to €3.39 billion compared to the prior year (Q3 2024: €3.83 billion). While Evonik was able to keep selling prices almost stable, half of the decline in revenue was due to lower sales volumes. The sale of the superabsorbents business in August 2024 and unfavorable exchange rates, especially the weak U.S. dollar, also contributed to the decline. The adjusted EBITDA margin was significantly weaker at 13.2 percent (Q3 2024: 15.1 percent).

Free cash flow was €300 million (Q3 2024: €357 million), marking a clearly positive trend over the course of the year. The strict management of investments and net working capital paid off.

"Many trends are going against us at the moment, so we had to adjust our expectations to this new reality in September," says Claus Rettig, responsible for the finance department since September 18. "Our adjusted targets for this year are achievable, and we are focused on the long-term, successful implementation of our programs to grow revenues and cut costs."

The largest of these change initiatives is the Evonik Tailor Made efficiency program. It is progressing according to plan, and its advantages ─ like fewer hierarchical levels and lower personnel costs ─ are apparent already. By the end of the year, 90 percent of all business lines will have been restructured.

The new, differentiated management of the chemical businesses has a positive effect as well. With a clear focus on pricing, Evonik increased prices by an average of 2 percent in the Custom Solutions segment with its specialties and tailor-made solutions. In the Advanced Technologies segment, where the focus is on efficient plant utilization, volumes fell by only 2 percent ─ a solid performance in a weak environment. 

Evonik expects demand to remain weak through the end of the year, which should bring adjusted EBITDA to around €1.9 billion for the full year (2024: €2.07 billion).