Evonik Industries AgXETR: EVK

Financial Report (EvonikQ12026E)

May 8, 2026 at 6:33 AM UTC · Issued by Evonik Industries Ag

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‌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 EBITDAa	560	475
Adjusted EBITDA margin in %	14.8	13.9
Adjusted EBITb	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 flowc	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 regiona-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

3,427

3,777

3,499

3,391

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

475

560

509

448

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 taxesa	314	221
Adjusted income taxes	-36	-59
Adjusted income after taxesa	278	162
thereof adjusted income attributable to non-controlling interests	3	4
Adjusted net incomea	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 expendituresa	56	60
No. of employees as of March 31	9,405	9,458

in € million 2025 2026 Change in %

-9

-17

-29

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

1,450

1,601

1,511

1,445

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

241

291

266

202

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 expendituresa	50	64
No. of employees as of March 31	9,746	9,805

in € million 2025 2026 Change in %

-7

-11

-16

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

1,334

1,427

1,367

1,340

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

227

256

254

215

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 expendituresa	16	11
No. of employees as of March 31	3,692	4,052

in € million 2025 2026 Change in %

-19

-23

-33

-31

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 liabilitiesa	-3,314	-3,285
Current financial liabilitiesa	-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 2026a

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 rateb	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 interesta	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 hedgesa	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 expendituresa	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 salesa	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

presse@evonik.com

Investor Relations

Phone +49 201 177-3146

investor-relations@evonik.com

The English version of this quarterly statement is a translation of the German original report and is provided for information only.