Evonik Industries (EVK) Investor presentation summary

Financial performance and key metrics

• FY 2025 sales reached €14.1 bn, with adj. EBITDA at €1.9 bn (13.3% margin) and free cash flow of €695 m (37% conversion rate).

• ROCE stood at 6.1%, and dividend per share is set at €1.00 for 2025.

• Revised FY 2025 guidance was achieved, with strong Q4 cash generation and adj. EBITDA of €357 m.

• Net financial debt slightly increased to €3,311 m, with leverage at 1.6x.

• FY 2026 guidance targets adj. EBITDA between €1.7–2.0 bn and ~40% cash conversion.

Strategic direction and portfolio

• Portfolio structured into Custom Solutions and Advanced Technologies, each with distinct roles and KPIs.

• Focus on three innovation growth areas: biosurfactants & biotech, cell culture solutions, and nucleic acid-based medicines.

• Emphasis on sustainable innovation, aiming for €1.5 bn additional sales by 2032 at >20% margin.

• Next Generation Solutions now comprise 48% of sales, targeting >50% by 2030.

• Growth investments in new and existing products, including PA12 in Germany and aluminum oxides in Japan.

Operational excellence and cost management

• Ongoing restructuring and optimization programs, with FTE reduction of over 850 in 2025 and further 1,000 planned for 2026.

• Fixed cost increases, especially in German wages, challenged cost savings in 2025.

• Disciplined capex approach, with ~€750 m planned for 2026.

• Optimization measures include digital sourcing and procurement automation.