Evonik Industries (EVK) Q4 2025 TU earnings summary

Executive summary

• Achieved revised FY 2025 guidance with adjusted EBITDA of €1,874m, strong cash generation (FCF €695m, 37% cash conversion), and Health Care segment performance.

• Q4 2025 adjusted EBITDA was €357m, down 8% year-over-year, supported by Health Care and lower personnel costs.

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

• Continued focus on cost reduction, portfolio optimization, and disciplined capital allocation, with ROCE to be included in board compensation.

Financial highlights

• FY 2025 sales were €14,069m, down 7% year-over-year; adjusted EBITDA €1,874m; FCF €695m; cash conversion rate 37%.

• Q4 2025 sales were €3,403m, adjusted EBITDA €357m, FCF €411m.

• Net financial debt at year-end €3,311m; leverage at 1.6x (financial debt) and 2.4x (including pensions).

• ROCE for FY 2025 was 6.1%, down from 7.1% in 2024.

• Capex for FY 2025 at €748m, down 11% year-over-year.

Outlook and guidance

• FY 2026 adjusted EBITDA expected between €1.7bn and €2.0bn; sales guidance €14–15bn; stable earnings anticipated at midpoint.

• Free cash flow conversion targeted at ~40%; capex planned at ~€750m.

• ROCE expected around prior-year level (6.1% in 2025); Custom Solutions and Infrastructure/Other expected slightly above prior-year, Advanced Technologies slightly below.

• Q1 2026 expected to be on par with Q3 2025, with small earnings improvement needed in subsequent quarters.