Earnings release
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Analyst & Investor Fact Sheet Q4 / FY 2025 Preliminary (Unaudited) Results February 5th, 2026 1 evonik.finance/investor-relations EVONIK GROUP DEVELOPMENT Revised 2025 guidance achieved with strong cash generation – Aiming for broadly stable earnings in 2026 • Revised earnings outlook for FY 2025 achieved: Adj. EBITDA of €1,874 m; solid Q4 (adj. EBITDA €357 m; “only“ -8% yoy); results mainly supported by Health Care as well as lower personnel costs • Cash conversion rate of 37% for FY 2025 in upper half of guidance corridor (FCF of €695 m); strong finish to the year with €411 m of FCF generated in Q4 thanks to decisive NWC management • Aiming for broadly stable earnings in FY 2026: Adj. EBITDA between €1.7 and 2.0 bn expected; tough environment mainly balanced out by further cost optimization; FCF conversion again at ~40% • Consistent strategy execution key to reach our ROCE target of 11% as soon as possible; realization of growth projects in attractive niches and implementation of optimization programs as base for future success • New dividend policy in two steps: 1) €1 for fiscal 2025; 2) 40-60% payout of adj. net income for years thereafter; combining an attractive dividend (~7% yield for 2025) with increased financial flexibility Income Statement (Q4 2025) • Sales down by -5% to €3,403 m (Q4 2024: €3,599 m) o Volume increase (+2%) compensated by lower prices (-2%), both mainly driven by Advanced Technologies; Custom Solutions with stable volumes and prices in Q4 o Sales decline therefore solely attributable to FX (-5%; weak USD) • Adj. EBITDA down -8% yoy to €357 m (Q4 2024: €388 m) o Custom Solutions with yoy higher earnings in Q4 (+3%) thanks to strong Health Care business o Advanced Technologies with flat earnings yoy in Q4; visible benefits of optimization programs able to offset tough competition o Lower personnel costs supportive: Structural reduction of >850 FTE yoy and further bonus provision release • (FY 2025 adj. EBITDA of €1.874 m (FY 2024: €2,065 m), in line with guidance “around €1.9 bn”) • Adj. EBITDA margin stable at 10.5% (Q4 2024: 10.8%) • Adj. EBIT of €105 m (Q4 2024: €111 m) • Adj. EPS of €0.15 (Q4 2024: €0.16) • (FY 2025 adj. EPS of €1.36 (FY 2024: €1.67) with adj. financial result slightly more negative yoy but adj. tax rate of 22% below long-term sustainable tax rate of ~30%) Cash Flow Statement • Q4 2025 FCF of €411 m; clearly above last year’s level of €172 m o Reduced capex spend at year-end (-€65 m yoy in Q4) o Decisive NWC management: Delta NWC +€163 m in Q4 and NWC to sales ratio down to 17.2% at year-end (end of Q3: 19.4%; end of last year: 17.7%) • FY 2025 FCF strong at €695 m (FY 2024: €873 m); with 37% cash conversion rate in upper half of guidance corridor Balance Sheet • Net financial debt (€3,311 m) slightly up yoy (€3,253 m) but declined vs. end of Q3 (€3,677 m) • Pension provisions of €1,490 m decreased yoy (€1,662 m) due to higher discount rate • Leverage of 2.4x at year-end (end of 2024: 2.3x); financial debt leverage of 1.6x (2024: 1.5x)
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Analyst & Investor Fact Sheet Q4 / FY 2025 Preliminary (Unaudited) Results February 5th, 2026 2 evonik.finance/investor-relations NEW DIVIDEND POLICY Overall Rationale • Capital allocation priorities remain unchanged 1. Investments into organic growth (unchanged) ▪ 50:50 smart preservation and disciplined growth capex 2. Attractive dividend ▪ New dividend policy → see below 3. Additional value creation (unchanged) ▪ De-leveraging and no M&A until 2027 ▪ Optional: additional shareholder returns • Aiming to combine an attractive dividend with increased financial flexibility • Rigid dividend of €1.17 not adequate in this tough market environment and for a company in transformation Step 1: €1 per share proposed for FY 2025 (to be paid in 2026) • Transition year from the past’s fixed dividend level to a payout ratio in the future • €1 per share highly attractive dividend in these difficult times: ~7% yield Step 2: 40-60% payout ratio proposed from FY 2026 onwards (to be paid from 2027) • Dividend tied to financial performance enables o Long-term sustainability of dividend o More financial flexibility for Evonik to reach its strategic and financial targets o Participation of investors in future growth • 40-60% payout range allows for dividend continuity and reliability in Euro terms o i.e. higher payout ratio in weaker financial years and vice versa
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Analyst & Investor Fact Sheet Q4 / FY 2025 Preliminary (Unaudited) Results February 5th, 2026 3 evonik.finance/investor-relations DEVELOPMENT IN THE SEGMENTS (Q4) Custom Solutions (CU) • Differentiated steering of new segments visible: o Pricing focus paying off (+1%) o Volume stabilizing (+0%) • But burdened by FX • Earnings up yoy, driven by Health Care • Additives (adj. EBITDA stable yoy) o Despite weak demand persisting, most additives with stable to positive volumes o Biodiesel catalysts and PU-additives with volume declines, mostly in Europe & US • Care (adj. EBITDA up yoy) o Care Solutions suffering from still weak end customer demand in Base Ingredients, while Specialities developed well o Health Care with strong year end, mainly driven by phasing of customer campaigns and higher demand in oral drug delivery Advanced Technologies (AT) • Inorganics (adj. EBITDA up yoy) o Solid performance yoy for Silica: first visible effect of asset network optimization and ramp-up of metal oxides plant in Japan • Organics (adj. EBITDA down yoy) o Positive volume trend in both businesses o Crosslinkers: ongoing price pressure and impact of stronger inventory reduction towards year end o Polymers: strong demand for PA12 in automotive, sport and consumer end markets, esp. in Asia • Animal Nutrition (adj. EBITDA down yoy) o Strong volume development yoy offset by normalization of prices; strong impact from exchange rate effects o Market demand remains healthy Infrastructure (incl. C4) / Other • Infrastructure (adj. EBITDA up yoy) o Oxeno (C4 business) with continued weak market conditions o Stronger results from infrastructure business Marl and Wesseling due to lower costs and project business • Other (adj. EBITDA down yoy) o Last year supported by positive effect of CO2 certificates
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Analyst & Investor Fact Sheet Q4 / FY 2025 Preliminary (Unaudited) Results February 5th, 2026 4 evonik.finance/investor-relations OUTLOOK FY 2026 → Assumptions for Outlook: see presentation page 11 Group Outlook • Adj. EBITDA between €1.7 – 2.0 bn (FY 2025: €1.9 bn) • ROCE: around prior-year level (2025: 6.1%) • FCF: targeting ~40% cash conversion rate (FY 2025: 37%; FCF €695 m) • Capex: ~€750 m (FY 2025: €748 m) Additional Indications for FY 2026 • Sales: between €14 and 15 bn (2025: €14.1 bn) • EUR/USD sensitivity: +/-1 USD cent = -/+ ~€5 m adj. EBITDA (FY basis) • Adj. D&A: around prior-year level (2025: €1,013 m) • Adj. net financial result: around prior year level (2025: -€162 m) • Adj. tax rate: around long-term sustainable level of ~30% (2025: 22%) Segment Outlook for Adj. EBITDA) • Custom Solutions: “Slightly above prior-year level” (FY 2025: €909 m) o Slightly higher volumes expected in most businesses; increasing utilization of new plants o Slightly falling input costs o Health Care: positive effects from optimization program • Advanced Technologies: “Slightly below prior-year level” (FY 2025: €944 m) o Less positive one-time-effects vs. PY o Continued competitive pressure for more standardized products o Normalization of methionine prices, partly offset by higher volumes and better cost position o Benefits from optimization programs • Infrastructure (incl. C4) / Other: “Slightly above prior-year level” (FY 2025: €21 m) o More FTE reduction o Slight recovery for Oxeno (C4) possible, coming from a trough level in 2025
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Analyst & Investor Fact Sheet Q4 / FY 2025 Preliminary (Unaudited) Results February 5th, 2026 5 evonik.finance/investor-relations Please see “Key Financial Data” on our website (“Reporting”) for further detailed KPI’s and indications, including on sub-segment level in € million Q4 2024 Q4 2025 yoy Δ% Q4 2025 Consensus* FY 2024 FY 2025 yoy Δ% FY 2025 Consensus* External sales 3,599 3,403 -5% 3,336 15,157 14,069 -7% 14,003 Volumes (%) 2% -3% -2% -2% Prices (%) -2% 0% -1% -1% Exchange Rates (%) -5% -3% -2% -2% Other (incl. M&A; %) 0% 0% -2% -1% Adjusted EBITDA 388 357 -8% 363 2,065 1,874 -9% 1,879 Adjusted EBITDA Margin (%) 10.8% 10.5% -0.3 pp 11 13.6% 13.3% -0.3 pp 13.5% Adjusted EBIT 111 105 -5% 98 1,027 861 -16% 853 Adjustments -202 -37 -7 -450 -283 -253 EBIT -91 68 -175% 83 577 578 0% 593 Adjusted net income 74 71 -4% 26 777 634 -18% 581 Adjusted earnings per share in € 0.16 0.15 0.06 1.67 1.36 1.25 Capex (cash-out) 266 201 -24% -194 840 748 -11% -750 Net financial position -3,253 -3,311 -3,253 -3,311 Cash flow from operating activities, cont. ops. 438 612 40% 551 1,713 1,443 -16% 1,382 Free cash flow, cont. ops. 172 411 139% 357 873 695 -20% 641 External sales 1,408 1,359 -3% 1,290 5,737 5,492 -4% 5,424 Volumes (%) 0% -3% Prices (%) 1% 1% Exchange Rates (%) -5% -3% Other (incl. M&A; %) 1% 1% Sales Additives 935 869 -7% 860 3,908 3,683 -6% 3,675 Sales Care 473 491 4% 453 1,829 1,809 -1% 1,772 Adjusted EBITDA 179 184 3% 192 978 909 -7% 917 Adjusted EBITDA Margin (%) 12.7% 13.5% 0.8 pp 14.5% 17.0% 16.6% -0.4 pp 16.8% External sales 1,504 1,415 -6% 1,407 6,089 5,973 -2% 5,964 Volumes (%) 2% 2% Prices (%) -3% -2% Exchange Rates (%) -5% -3% Other (incl. M&A; %) 0% 1% Sales Organics 408 395 -3% 379 1,664 1,634 -2% 1,618 Sales Inorganics 607 566 -7% 581 2,490 2,395 -4% 2,411 Sales Animal Nutrition 489 454 -7% 446 1,935 1,944 0% 1,914 Adjusted EBITDA 185 186 1% 171 1023 944 -8% 930 Adjusted EBITDA Margin (%) 12.3% 13.1% 0.8 pp 12.0% 16.8% 15.8% -1.0 pp 15.5% External sales 687 629 -8% 624 3,331 2,604 -22% 2,600 Adjusted EBITDA 25 -13 -152% 0 64 21 -67% 33 * Vara Consensus January 19, 2026 Infrastructure (incl. C4 business) / Other Key Financials Q4 / FY 2025 Evonik Group Custom Solutions Advanced Technologies