Evonik Industries : Financial Report (EvonikQ12026E)

About this update from Evonik Industries Ag

‌ QUARTERLY STATEMENT 1st quarter ‌FIRST QUARTER BETTER THAN EXPECTED‌ Earnings slightly above expectations thanks to improved demand from customers in March Business performance held back by persistently challenging global economic conditions Negative currency effects weighed on sales and earnings Adjusted EBITDA dropped 15 percent to €475 million Net income contracted by 46 percent to €125 million Free cash flow of €183 million around the prior-year level Outlook for 2026 confirmed: adjusted EBITDA still expected to be between €1.7 billion and €2.0 billion Key figures for the Evonik Group 1st quarter in € million 2025 2026 Sales 3,777 3,427 Adjusted EBITDA a 560 475 Adjusted EBITDA margin in % 14.8 13.9 Adjusted EBIT b 309 235 Income before financial result and income taxes, continuing operations (EBIT) 299 229 Net income 233 125 Adjusted net income 275 158 Earnings per share in € 0.50 0.27 Adjusted earnings per share in € 0.59 0.34 Cash flow from operating activities, continuing operations 385 407 Cash outflows for investments in intangible assets, property, plant and equipment -190 -224 Free cash flow c 195 183 Net financial debt as of March 31 -3,058 -3,140 No. of employees as of March 31 31,585 30,643 a Earnings before financial result, taxes, depreciation, and amortization, after adjustments, continuing operations. b Earnings before financial result and taxes, after adjustments, continuing operations. c Cash flow from operating activities, continuing operations, less cash outflows for investments in intangible assets, property, plant and equipment. Due to rounding, some figures in this report may not add up exactly to the totals stated. CONTENTS Business conditions and performance 2 Business performance 2 Performance of the segments 4 Financial position 8 Expected development 9 Income statement 11 Balance sheet 12 Cash flow statement 13 Segment report 14 Appendix 16 Financial calendar 17 Credits 17 Advanced Technologies 42% Sales by segment-1st quarter 2026 Sales by region a -1st quarter 2026 Infrastructure 19% Asia-Pacific 23% Europe, Middle East C Africa 48% Custom Solutions 39% Americas 29% a By location of customer. ‌Business conditions and performance‌ Business performance Business performance in Q1 2026 The challenging global economic conditions are continuing to impact our business performance. The weaker demand from key end-markets worldwide initially continued in the first quarter. As a consequence of the heightened uncertainty caused by the war in the Middle East, we noticed an upturn in business from March, presumably due to customers stocking up on inventories. Overall, volumes therefore only declined slightly. In the first quarter, adjusted EBITDA was above our expectations but remained considerably below the prior-year level, mainly due to negative currency effects. Sales by quarter in € million Q1 3 , 427 3 , 777 Q2 3 , 499 Q3 3 , 391 Q4 3 , 402 0 600 1 , 200 1 , 800 2 , 400 3 , 000 3 , 600 4 , 200 2026 2025 The Evonik Group's sales decreased by 9 percent to €3,427 million, principally due to negative currency effects, which reduced sales by 5 percent. The organic decline in sales of 3 percent resulted from a slight drop in volumes and selling prices. Year-on-year change in sales in % 1st quarter 2026 Volumes -2 Prices -1 Organic change in sales -3 Exchange rates -5 Change in the scope of consolidation/other effects -1 Total -9 Adjusted EBITDA by quarter in € million Q1 475 560 Q2 509 Q3 448 Q4 357 0 100 200 300 400 500 600 2026 2025 Statement of income 1st quarter in € million 2025 2026 Change in % Sales 3,777 3,427 -9 Adjusted EBITDA was €475 million, 15 percent below the high prior-year level, which included a compensation payment due to the termination of a supply agreement by a customer. The main reasons for the decline were negative currency effects and lower volume sales. Earnings were supported by savings measures. The adjusted EBITDA margin fell from 14.8 percent in the first quarter of 2025 to 13.9 percent. Adjusted EBITDA 560 475 -15 -24 -23 -32 -45 -45 -46 Adjusted depreciation, amortization, and impairment losses -251 -240 Adjusted EBIT 309 235 Adjustments -10 -6 thereof structural measures -12 -4 thereof acquisitions and divestments -11 - thereof other special items 13 -2 Income before financial result and income taxes, continuing operations (EBIT) 299 229 Financial result -29 -46 Income before income taxes, continuing operations 270 183 Income taxes -34 -54 Income after taxes, continuing operations 236 129 Income after taxes, discontinued operations - - Income after taxes 236 129 thereof income attributable to non-controlling interests 3 4 Net income 233 125 Earnings per share in € 0.50 0.27 ‌The adjustments of -€6 million contained -€4 million for structural measures, especially for projects to optimize individual businesses. The prior-year adjustments mainly comprised expenses for structural measures and the sale of a small investment. The financial result dropped by €17 million to -€46 million as interest income was lower than in the prior-year period. Income before income taxes, continuing operations decreased by 32 percent to €183 million due to the weaker business development. Income tax expense amounted to €54 million. Net income declined from €233 million to €125 million. After adjustment for special items, adjusted net income was 43 percent lower at €158 million. Adjusted earnings per share dropped from €0.59 in the prior-year period to €0.34. Reconciliation to adjusted net income 1st quarter in € million 2025 2026 Change in % Adjusted EBITDA 560 475 -15 -24 -30 -42 -43 Adjusted depreciation, amortization, and impairment losses -251 -240 Adjusted EBIT 309 235 Adjusted financial result -29 -46 Adjusted amortization and impairment losses on intangible assets 34 32 Adjusted income before income taxes a 314 221 Adjusted income taxes -36 -59 Adjusted income after taxes a 278 162 thereof adjusted income attributable to non-controlling interests 3 4 Adjusted net income a 275 158 Adjusted earnings per share in € a 0.59 0.34 a Continuing operations. Development of the segments Advanced Technologies Key figures 1st quarter External sales 1,601 1,450 Adjusted EBITDA 291 241 Adjusted EBITDA margin in % 18.2 16.6 Adjusted EBIT 181 129 Capital expenditures a 56 60 No. of employees as of March 31 9,405 9,458 in € million 2025 2026 Change in % -9 -17 - -29 7 1 Prior-year figures restated. a Capital expenditures for intangible assets, property, plant and equipment. In the Advanced Technologies segment, sales contracted by 9 percent to €1,450 million in the first quarter of 2026. This was attributable to considerably negative currency effects and slightly lower volumes and prices. In the Animal Nutrition business, selling prices did not decline as significantly as had been expected and were partially offset by higher volumes. At the same time, considerably negative exchange rates had an impact. Sales were below the prior-year level, which contained a compensation payment due to the termination of a supply contract. The Inorganics business posted lower sales as a result of a general drop in demand and, above all, negative currency effects. Sales were down in the Organics business, mainly due to prices and exchange rates. High-performance polymers benefited from positive demand, but demand for crosslinkers fell slightly. Sales Advanced Technologies in € million Q1 1 , 450 1 , 601 Q2 1 , 511 Q3 1 , 445 Q4 1 , 416 0 200 400 600 800 1 , 000 1 , 200 1 , 400 1 , 600 1 , 800 2026 2025 Prior-year figures restated. Adjusted EBITDA was €241 million, 17 percent below the prior-year figure, which contained a compensation payment. The reduction was mainly due to declining selling prices and negative currency effects. The adjusted EBITDA margin fell from 18.2 percent in the prior-year period to 16.6 percent. Adjusted EBITDA Advanced Technologies in € million Q1 241 291 Q2 266 Q3 202 Q4 185 0 50 100 150 200 250 300 2026 2025 Prior-year figures restated. Custom Solutions Key figures 1st quarter External sales 1,427 1,334 Adjusted EBITDA 256 227 Adjusted EBITDA margin in % 17.9 17.0 Adjusted EBIT 181 152 Capital expenditures a 50 64 No. of employees as of March 31 9,746 9,805 in € million 2025 2026 Change in % -7 -11 - -16 28 1 Prior-year figures restated. a Capital expenditures for intangible assets, property, plant and equipment. Sales in the Custom Solutions segment dropped 7 percent to €1,334 million in the first quarter of 2026. Since selling prices were almost stable, this was attributable to considerably negative currency effects and lower volumes. The Additives business registered slightly higher demand for additives for polyurethane foams and consumable durables. There was also a slight rise in volumes of oil additives. Overall, the Additives business registered lower sales, mainly due to currency effects. The Care business also posted a year-on-year drop in sales because slightly higher selling prices could not fully offset the impact of lower volumes and negative currency effects. Sales Custom Solutions in € million Q1 1 , 334 1 , 427 Q2 1 , 367 Q3 1 , 340 Q4 1 , 358 0 200 400 600 800 1 , 000 1 , 200 1 , 400 1 , 600 2026 2025 Prior-year figures restated. Adjusted EBITDA decreased by 12 percent to €227 million, mainly because of lower demand and negative currency effects. The adjusted EBITDA margin fell from 17.9 percent in the prior-year period to 17.0 percent. Adjusted EBITDA Custom Solutions in € million Q1 227 256 Q2 254 Q3 215 Q4 184 0 50 100 150 200 250 300 2026 2025 Prior-year figures restated. Infrastructure Key figures 1st quarter External sales 708 577 Adjusted EBITDA 61 47 Adjusted EBITDA margin in % 8.6 8.1 Adjusted EBIT 21 14 Capital expenditures a 16 11 No. of employees as of March 31 3,692 4,052 in € million 2025 2026 Change in % -19 -23 - -33 -31 10 Prior-year figures restated. a Capital expenditures for intangible assets, property, plant and equipment. Sales in the Infrastructure segment dropped 19 percent to €577 million in the first quarter of 2026. At SYNEQT, sales were considerably lower than in the prior-year period, which contained one-time income from project business, especially the provision of a pipeline for the nationwide hydrogen infrastructure of the GET H2 initiative. Sales were considerably lower at Oxeno as a result of lower volumes and prices and negative currency effects. Adjusted EBITDA decreased by 23 percent to €47 million. ‌Financial position‌ Compared with the first three months of 2025, the cash flow from operating activities, continuing operations improved by €22 million to €407 million. The weaker operating performance was offset, in particular, by advance payments from customers. The cash outflows for investments in intangible assets, property, plant and equipment were €224 million, a year-on-year rise of €34 million. The free cash flow fell by €12 million to €183 million. Cash flow statement (excerpt) 1st quarter in € million 2025 2026 Cash flow from operating activities, continuing operations 385 407 Cash outflows for investments in intangible assets, property, plant and equipment -190 -224 Free cash flow 195 183 Cash flow from other investing activities, continuing operations -321 21 Cash flow from financing activities, continuing operations 402 -112 Change in cash and cash equivalents 276 92 Prior-year figures restated. Net financial debt was €3,140 million, a decrease of €171 million compared with December 31, 2025. This was mainly due to the positive free cash flow. Net financial debt in € million Dec. 31, 2025 Mar. 31, 2026 Non-current financial liabilities a -3,314 -3,285 Current financial liabilities a -617 -562 Financial debt -3,931 -3,847 Cash and cash equivalents 495 589 Current securities 124 117 Other financial investments 1 1 Financial assets 620 707 Net financial debt -3,311 -3,140 a Excluding derivatives and excluding the liabilities under rebate and bonus agreements. In the first quarter of 2026, capital expenditures for intangible assets, property, plant and equipment amounted to €145 million (Q1 2025: €133 million). In principle, there is a slight timing difference in cash outflows for intangible assets, property, plant and equipment. Current major projects include the expansion of production capacities for SEPURAN® membranes in Austria and for precipitated silicas in North America. Expected development Our expectations for global economic conditions in 2026 have deteriorated since the beginning of this year. The global economy has been in a phase of heightened economic policy uncertainty for years, and this is likely to be exacerbated by the war in the Middle East. The closure of the Strait of Hormuz is causing significant disruption to global supply chains. The resulting rise in energy and raw material prices is likely to put increasing strain on both consumers and companies during the year, leading to greater restraint in consumption and, above all, investment. In addition, a renewed rise in inflation could prompt central banks to adopt a more restrictive monetary policy. The uncertainty regarding the USA's future economic and trade policy and possible retaliation by trading partners is still hampering global economic growth prospects. Moreover, there are still structural challenges, such as high global debt, the real estate crisis in China, and high energy costs in Europe compared with the international situation. All these factors could result in low economic growth in 2026. By contrast, factors that could support the economy in 2026 include rising defense spending and investment in the IT sector. Besides, labor markets should remain relatively resilient. The war in the Middle East is having a significant impact on the cost and availability of many raw materials. Therefore, we anticipate that in 2026 the prices of the specific raw materials used by Evonik will be significantly higher than in 2025 (previously: slightly lower than in 2025). Expected development of earnings The war in the Middle East has altered our expectations for our business performance in 2026. While January and February were dominated by continued weak demand, in line with the original expectations, some of our businesses have observed higher demand from customers since the outbreak of the war at the beginning of March. This is presumably not due to a real rise in demand but due to purchases of inventories as customers endeavor to protect themselves from supply chain disruption and rising prices. This trend will probably continue at the beginning of the second quarter. At the same time, in view of the rapid rise in energy and raw material prices, we are forced to raise our selling prices. In combination with temporary constraints on supply volumes, the development of prices in the first half of the year will therefore be better than we anticipated at the start of the year, especially in the Animal Nutrition business. However, given rising inflation rates and the pre-buying outlined above, there is an increased risk that we will see a drop in demand and thus lower sales volumes in the second half of the year. We therefore consider it probable that the better-than-expected development in the first half of the year will be countered by a weaker second half. Evonik still expects adjusted EBITDA to be between €1.7 billion and €2.0 billion in 2026 (2025: €1,874 million). In 2026, the return on capital employed (ROCE) is expected to remain stable compared with the 2025 level (2025: 6.1 percent). ‌As in previous years, the development of earnings will be supported by our focus on cost discipline. The Evonik Tailor Made restructuring program and the optimization programs in the operating businesses are increasingly delivering savings. Along with the introduction of further short-term contingency measures, this should more than offset the increase in fixed costs during the year. Earnings are still likely to be held back by negative currency effects, at least in the first half of the year. Financing and investments In recent years, cash outflows for investments in intangible assets, property, plant and equipment have been characterized by restraint. Due to the declining earnings development in 2025, we reduced cash outflows for investments to around €750 million, which was below the long-term average. We will continue our disciplined approach in 2026 and maintain cash outflows at this level (2025: €748 million). Owing to strict discipline in capital expenditures and net working capital, Evonik was able to generate a high absolute free cash flow and thus an attractive cash conversion rate in 2025, even in a challenging environment. We will continue our disciplined approach in 2026. We still expect the cash conversion rate to be around our target of 40 percent this year (2025: 37 percent; absolute free cash flow: €695 million). As the key elements of free cash flow are expected to be similar to those in 2025, a slightly positive effect should come from lower bonus payments for fiscal 2025. Forecast for 2026 Forecast performance indicators 2025 Forecast for 2026 a Adjusted EBITDA €1.9 billion Between €1.7 billion and €2.0 billion ROCE 6.1% At the prior-year level Cash outflows for investments in intangible assets, property, plant and equipment €748 million Around €750 million Free cash flow: cash conversion rate b 37% Around 40% a As reported in the financial and sustainability report 2025. b Ratio of free cash flow to adjusted EBITDA. Income statement 1st quarter in € million 2025 2026 Sales 3,777 3,427 Cost of sales -2,769 -2,563 Gross profit on sales 1,008 864 Selling expenses -454 -419 Research and development expenses -106 -94 General administrative expenses -126 -114 Other operating income 46 41 Other operating expense -71 -50 Result from investments recognized at equity 2 1 Income before financial result and income taxes, continuing operations (EBIT) 299 229 Interest income 24 10 Interest expense -51 -51 Other financial income/expense -2 -5 Financial result -29 -46 Income before income taxes, continuing operations 270 183 Income taxes -34 -54 Income after taxes, continuing operations 236 129 Income after taxes, discontinued operations - - Income after taxes 236 129 thereof attributable to non-controlling interests 3 4 thereof attributable to shareholders of Evonik Industries AG (net income) 233 125 Earnings per share in € (basic and diluted) 0.50 0.27 thereof continuing operations 0.50 0.27 thereof discontinued operations 0.00 0.00 ‌Balance sheet‌ in € million Dec. 31, 2025 Mar. 31, 2026 Goodwill 4,411 4,460 Other intangible assets 686 662 Property, plant and equipment 6,006 6,051 Right-of-use assets 892 867 Investments recognized at equity 45 46 Trade accounts receivable 1 1 Other financial assets 419 397 Deferred taxes 436 430 Other income tax assets 22 22 Other non-financial assets 96 90 Non-current assets 13,014 13,026 Inventories 2,300 2,429 Trade accounts receivable 1,525 1,728 Other financial assets 220 212 Other income tax assets 94 95 Other non-financial assets 333 378 Cash and cash equivalents 495 589 Current assets 4,967 5,431 Total assets 17,981 18,457 Issued capital 466 466 Capital reserve 1,168 1,168 Retained earnings 7,173 7,212 Other equity components -697 -616 Equity attributable to shareholders of Evonik Industries AG 8,110 8,230 Equity attributable to non-controlling interests 64 68 Equity 8,174 8,298 Provisions for pensions and other post-employment benefits 1,490 1,547 Other provisions 591 597 Other financial liabilities 3,476 3,471 Deferred taxes 576 592 Other income tax liabilities 228 231 Other non-financial liabilities 118 122 Non-current liabilities 6,479 6,560 Other provisions 787 818 Trade accounts payable 1,401 1,521 Other financial liabilities 689 684 Other income tax liabilities 58 79 Other non-financial liabilities 393 497 Current liabilities 3,328 3,599 Total equity and liabilities 17,981 18,457 Cash flow statement 1st quarter in € million 2025 2026 Income before financial result and income taxes, continuing operations (EBIT) 299 229 Depreciation, amortization, impairment losses/reversal of impairment losses on non-current assets 240 239 Result from investments recognized at equity -2 -1 Gains/losses on the disposal of non-current assets 15 -2 Change in inventories -140 -104 Change in trade accounts receivable -143 -183 Change in trade accounts payable 185 187 Change in provisions for pensions and other post-employment benefits -4 -8 Change in other provisions 37 27 Change in miscellaneous assets/liabilities -100 46 Cash outflows for income taxes -42 -24 Cash inflows from income taxes 40 1 Cash flow from operating activities, continuing operations 385 407 Cash outflows for investments in intangible assets, property, plant and equipment -190 -224 Cash inflows from divestments of intangible assets, property, plant and equipment 8 10 Cash inflows relating to the loss of control over businesses 3 - Cash inflows from divestment of other shareholdings 2 4 Cash inflows/outflows relating to securities, deposits, and loans -352 3 Cash inflows from interest a 18 4 Cash flow from investing activities, continuing operations -511 -203 Capital inflows from/outflows to non-controlling interests 1 - Cash outflows for dividends to non-controlling interests -1 -2 Cash inflows from the addition of financial liabilities 521 71 Cash outflows for repayment of financial liabilities -107 -172 Cash inflows/outflows in connection with financial transactions - 15 Cash inflows from interest on interest rate hedges a 2 5 Cash outflows for interest -14 -29 Cash flow from financing activities, continuing operations 402 -112 Change in cash and cash equivalents 276 92 Cash and cash equivalents as of January 1 460 495 Change in cash and cash equivalents 276 92 Changes in exchange rates and other changes in cash and cash equivalents -3 2 Cash and cash equivalents as on the balance sheet as of March 31 733 589 a In the reports on 2025, the cash inflows from interest on interest rate hedges were presented in cash inflows in the cash flow from investing activities, continuing operations. ‌Segment report Segment report by operating segments-1st quarter Advanced Technologies Custom Solutions in € million 2025 2026 2025 2026 External sales 1,601 1,450 1,427 1,334 Internal sales 24 19 29 12 Total sales 1,625 1,469 1,456 1,346 Cost of sales -1,150 -1,091 -1,011 -943 Adjusted EBITDA 291 241 256 227 Adjusted EBITDA margin in % 18.2 16.6 17.9 17.0 Adjusted EBIT 181 129 181 152 Capital expenditures a 56 60 50 64 Financial investments - - - - No. of employees as of March 31 9,405 9,458 9,746 9,805 Prior-year figures restated. a For intangible assets, property, plant and equipment. Segment report by regions-1st quarter Europe, Middle East C Africa Americas in € million 2025 2026 2025 2026 External sales a 1,853 1,623 1,095 1,003 Non-current assets in accordance with IFRS 8 as of March 31 6,903 6,488 4,357 4,222 Capital expenditures 71 79 44 55 No. of employees as of March 31 20,979 20,274 5,554 5,499 Prior-year figures restated. a External sales Europe, Middle East C Africa: thereof Germany €607 million (Q1 2025: €738 million). Infrastructure Enabling functions, other activities, consolidation Total Group (continuing operations) 2025 2026 2025 2026 2025 2026 708 577 41 66 3,777 3,427 145 149 -198 -180 - - 853 726 -157 -114 3,777 3,427 -779 -650 171 122 -2,769 -2,562 61 47 -48 -40 560 475 8.6 8.1 - - 14.8 13.9 21 14 -74 -60 309 235 16 11 11 10 133 145 - - 1 2 1 2 3,692 4,052 8,742 7,328 31,585 30,643 Asia-Pacific Total Group (continuing operations) 2025 2026 2025 2026 829 801 3,777 12,798 133 31,585 3,427 1,538 1,465 12,175 18 11 145 5,052 4,870 30,643 ‌Appendix‌‌ Restatement of prior-year figures Effective April 1, 2025, Evonik aligned its corporate structure with the strategic development of the Group and introduced a considerably leaner management model. The previous 14 business lines, which were assigned to three divisions, are now bundled in two segments managed directly by individual members of the executive board. They are now managed in a more differentiated manner based on their business models and strategic roles. The new Advanced Technologies segment comprises technology- and efficiency-driven businesses, while the new Custom Solutions segment comprises solution- and innovation-driven businesses. This sharpens the strategy and allows a corresponding allocation of resources. The former division management level has been eliminated. The prior-year figures for the reporting segments have been restated accordingly. Restatement of prior-year figures due to the new corporate structure-Q1 2025 in € million Specialty Additives Nutrition C Care Smart Materials Advanced Technologies Custom Solutions Consolidation External sales -923 -1,007 -1,098 1,601 1,427 - Internal sales -45 -31 -8 24 29 31 Total sales -968 -1,038 -1,106 1,625 1,456 31 Adjusted EBITDA -201 -197 -149 291 256 - Adjusted EBIT -150 -142 -71 181 181 1 Capital expenditures -22 -39 -45 56 50 - Financial calendar Financial calendar 2026 Event Date Annual shareholders' meeting 2026 June 3, 2026 Interim report Q2 2026 August 4, 2026 Interim report Q3 2026 November 3, 2026 Credits Published by Evonik Industries AG Rellinghauser Strasse 1-11 45128 Essen, Germany https://www.evonik.com Contact Communications Phone +49 201 177-3315 [email protected] Investor Relations Phone +49 201 177-3146 [email protected] The English version of this quarterly statement is a translation of the German original report and is provided for information only.

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