Evonik posted a significant decline in earnings in the second quarter of 2025 amid a challenging economic environment. Adjusted EBITDA was 12 percent below the prior-year figure at €509 million. Sales declined by 11 percent to €3.5 billion across the Group. Evonik attributes the decline to weak demand and economic uncertainty. These factors were compounded by negative exchange-rate effects and the absence of the superabsorbents business, which was included in the prior-year period. Sales volumes declined by four percent, while prices remained largely stable. Evonik's net income rose to €120 million. In the same period last year, this figure was negatively impacted by provisions for the “Evonik Tailor Made” efficiency program.
Challenges and expectations for the second half of the year
CEO Christian Kullmann described the quarter as difficult and pointed to the impact of prolonged maintenance shutdowns, for example in polyamide 12 production. CFO Maike Schuh sees potential for the second half of the year thanks to the ramp-up of new capacity and fewer planned shutdowns.
Performance in Evonik's segments: Custom Solutions under pressure
In the Custom Solutions segment, sales declined by seven percent to €1.37 billion. This was mainly due to lower volumes and currency effects. Demand for additives for polyurethane foams and durable consumer goods remained weak. Products for the paint and coatings industry were also less in demand. Adjusted EBITDA declined by ten percent to €254 million.
Stable development in Advanced Technologies
Sales in the Advanced Technologies segment amounted to €1.51 billion, a decline of one percent. Currency effects and slightly lower sales prices had a negative impact. The Animal Nutrition business area achieved higher sales thanks to higher volumes. In the Inorganics division, license income from the hydrogen peroxide business ensured stability. Sales in the Organics business area declined as a result of competitive pressure and plant shutdowns. Adjusted EBITDA remained at the previous year's level at €266 million.
Evonik forecast for the full year 2025
For the full year, Evonik expects adjusted EBITDA to be at the lower end of the forecast range of €2.0 to €2.3 billion. To stabilize free cash flow, Evonik plans to reduce capital expenditures by around €100 million to approximately €750 million.
