May 8, 2026
 

Evonik reports Q1 2026 earnings above forecast despite lower sales as Middle East conflict disrupts trade

The German specialty chemicals group beats its own profit expectations as customer pre-buying provides a near-term tailwind, even as sales decline on currency headwinds and weaker volumes.

Evonik Industries reported adjusted EBITDA of €475 million for the first quarter of 2026, slightly ahead of its internal forecast of around €450 million, despite group sales falling 9% year-on-year to €3.43 billion, with currency effects accounting for more than half of the decline.

The Middle East conflict has driven energy and raw material price spikes while reducing supply chain security. In response, customers appear to have been stockpiling since March, which Evonik expects to provide a tailwind into the second quarter as well. Net income fell to €125 million from €233 million in Q1 2025, while free cash flow held broadly steady at €183 million against €195 million a year earlier. The adjusted EBITDA margin declined by 0.9 percentage points to 13.9%.

In the Animal Nutrition business, selling prices fell less than expected and higher volumes partially offset the price decline, though revenue remained below the prior-year figure, which had included a compensation payment from the termination of a supply contract. Methionine prices came in above expectations during the quarter.

Chief Executive Officer Christian Kullmann said the trading environment remains difficult. "Economic growth relies on the free movement of goods. This had already been constrained by rising protectionism. Now, the war in the Middle East is blocking entire trade routes, adding further risk," he said.

Evonik expects the second quarter to be the strongest of 2026, with adjusted EBITDA forecast at a minimum of €550 million, compared with €509 million in Q2 2025. The company cautioned that higher inflation in the second half of the year is likely to weigh on consumption, investment and demand for its products, while energy and raw material costs are projected to exceed initial assumptions.

For the full year, Evonik confirmed its adjusted EBITDA forecast of between €1.7 billion and €2.0 billion. The company's efficiency programme Evonik Tailor Made is in its third and final year and remains on track, with a total of 1,000 jobs to be eliminated across the group in 2026 through the programme and various business optimisation initiatives.

Michael Rauch has been appointed Chief Financial Officer effective 1 May. Claus Rettig, who had assumed operational responsibility in the finance department, will return to his role as President of the Asia-Pacific region.

- Evonik