News Markets & Companies
Evonik raises its 2026 outlook
Thanks to supply bottlenecks affecting Asian competitors and higher prices, Evonik has reported unexpectedly strong preliminary figures for the second quarter of 2026. The Essen-based specialty chemicals company has raised its full-year guidance, but warns of uncertainties in the second half of the year.
Specialty chemicals company Evonik has published preliminary results for the second quarter of 2026 and surprised with adjusted EBITDA of EUR 600 million to EUR 650 million. This represents an average increase of 23% compared with the prior-year figure of EUR 509 million. The company had originally forecast at least EUR 550 million for the quarter. The main reason for the unexpectedly positive development is supply bottlenecks affecting Asian competitors, caused by the blockade of the Strait of Hormuz and higher energy prices in Asia.
“This earnings performance is attributable to both higher sales volumes and higher prices,” Evonik said. The Advanced Technologies segment benefited in particular from the strained situation in global supply chains. Despite these short-term advantages, the company remains cautious: “The favourable situation is expected to ease over the course of the year as global shipping returns to normal.”
Evonik raises 2026 guidance and continues cost-cutting programme
Based on the strong quarterly figures, Evonik has raised its guidance for the full year 2026. The Group now expects adjusted EBITDA of between EUR 2.0 billion and EUR 2.2 billion, compared with its previous guidance of EUR 1.7 billion to EUR 2.0 billion. In the 2025 financial year, adjusted EBITDA amounted to EUR 1.9 billion. Free cash flow is also expected to improve, with a targeted cash conversion rate of 40%.
Nevertheless, in view of the structural challenges facing the chemicals industry, Evonik remains on track with its “Evonik Tailor Made” cost-cutting programme. Between 2024 and 2026, 2,800 jobs are to be eliminated, followed by a further 3,200 positions by 2029. These measures are intended to secure the company’s long-term competitiveness through an improved cost structure. The administration at the company’s headquarters in Essen and operational units are particularly affected.
Outlook and uncertainties for the second half of the year
The strong performance in the first half of 2026 – with adjusted EBITDA of around EUR 1.1 billion – is largely based on short-term one-off effects. Evonik warns of uncertainties in the second half of the year, particularly if global supply chains stabilise. Nevertheless, the company continues to expect positive momentum in certain business areas, such as Animal Nutrition.
The final Q2 2026 results will be published on 4 August. Until then, it remains to be seen how geopolitical and economic conditions will affect the company’s further business development.
