Evonik Industries (EVK) investor relations material

Executive summary

• Achieved adjusted EBITDA of €1,874m in 2025, meeting revised guidance, with strong cash generation and net income rising to €265m from €222m in 2024.

• Q4 adjusted EBITDA was €357m, down 8% year-over-year, supported by Health Care and lower personnel costs.

• Sales declined 7% year-over-year to €14,069m in 2025.

• Dividend proposal of €1.00 per share for 2025; future dividends to be 40–60% of adjusted net income.

• Strategy execution focused on cost optimization, portfolio transformation, and growth in attractive niches, including investments in Asia and product innovation.

Financial highlights

• FY 2025 sales were €14,069m, down 7% year-over-year; adjusted EBITDA declined 9% to €1,874m; adjusted EPS was €1.36, down from €1.67 in FY 2024.

• Free cash flow for FY 2025 reached €695m, with a cash conversion rate of 37%, at the upper end of the 30–40% target range.

• Adjusted EBIT fell 16% to €861m in 2025.

• Net financial debt at year-end was €3,311m, with leverage at 1.6x adjusted EBITDA.

• Adjusted net income rose 19% to €265m.

Outlook and guidance

• FY 2026 adjusted EBITDA expected between €1.7bn and €2.0bn, aiming for broadly stable earnings despite a tough environment.

• Free cash flow conversion targeted at ~40% for FY 2026; capex to remain stable at ~€750m.

• Sales guidance for FY 2026 is €13.5–14.5bn; ROCE expected around prior-year level.

• Medium-term focus on achieving ROCE of 11%; 2025 ROCE was 6.1%.

• New dividend policy: €1 per share for FY 2025, then 40–60% payout of adjusted net income from FY 2026 onward.