05. Mar 2026
Evonik 2025 results: outlook stable despite weak market for PU additives
German specialty chemicals group Evonik Industries AG has published its final financial results for fiscal year 2025, confirming earlier guidance and reaffirming its earnings outlook for 2026 amid challenging market conditions affecting demand for additives used in polyurethanes and other performance materials.
Evonik delivered an adjusted EBITDA of €1.87 billion, in line with its forecast of around €1.9 billion, although group sales declined 7% to €14.1 billion versus 2024. Free cash flow remained robust at €695 million, and net income increased to €265 million. The company proposed a transition dividend of €1.00 per share for 2025, ahead of a new policy linking future payouts to 40-60% of adjusted net income. Looking ahead, Evonik reiterated its guidance for 2026 adjusted EBITDA between €1.7 billion and €2.0 billion.
Key 2025 financials (Evonik Group)
| Metric | 2025 | 2024 |
|---|---|---|
| Sales (€ billion) | 14.1 | 15.2 |
| Adjusted EBITDA (€ billion) | 1.87 | 2.07 |
| Net income (€ million) | 265 | 222 |
| Free cash flow (€ million) | 695 | 873 |
| Cash conversion rate (%) | 37 | 42 |
| Return on capital employed (ROCE) (%) | 6.1 | 7.1 |
Performance in segments relevant to polyurethanes
Evonik’s Custom Solutions segment – which includes additives for polyurethane foams and consumer durables, along with products for paints and coatings – experienced a decline in revenue and earnings. Although selling prices improved slightly year-on-year, overall additive volumes weakened, particularly for additives used in PU foam production and performance coatings. Negative currency effects also weighed on results. Revenue for Custom Solutions declined 4% to €5.49 billion, while adjusted EBITDA decreased 7% to €909 million, with the segment margin narrowing slightly.
In the Advanced Technologies segment, which covers high-performance plastics, crosslinkers and specialty materials used in engineered polyurethane systems, revenue fell 2% to €5.97 billion amid lower selling prices and currency headwinds — though volumes saw a modest increase. Adjusted EBITDA in the segment fell 8% to €944 million, with margins contracting from 16.8% to 15.8%.
Fourth quarter trends
Evonik closed 2025 with a sequential improvement in Q4 performance. Sales in the fourth quarter reached €3.40 billion, down 5% from €3.60 billion in Q4 2024, while adjusted EBITDA for the quarter was €357 million. The group returned to profitability in Q4 with net income of €18 million, compared with a loss in the same period last year.
Outlook and industry context
Evonik’s reaffirmed 2026 earnings outlook comes against a backdrop of softening demand in segments tied to industrial applications and PU additives. Analysts have noted a slight downward revision in sales forecasts for 2026, though underlying demand assumptions remain unchanged. The company continues to target a medium-term ROCE of 11%, despite a 2025 figure of 6.1%.
For producers and formulators of polyurethanes, additives and performance materials, the earnings release underlines ongoing pressure on volumes even as customers adjust to stable pricing and focused cost optimisation within specialty chemicals markets.
Photo © Evonik