Free money circulation dropped to unfavourable €211 million within the quarter ended June 30, down from €217 million a yr earlier.
The German specialty chemical substances firm stated the decline was because of elevated internet working capital and considerably larger variable compensation payouts for 2024.
Capex shall be lower to about €750 million this yr, down from the earlier estimate.
Adjusted EBITDA fell 12% year-over-year to €509 million from €578 million, whereas income declined 11% to €3.50 billion from €3.93 billion.
More than half the income lower was attributed to unfavourable foreign money results and the divestment of the superabsorbents enterprise, which was nonetheless a part of the portfolio within the year-ago quarter.
Sales volumes fell 4%, whereas costs remained largely steady. Longer-than-expected upkeep shutdowns, together with on the polyamide 12 plant, additionally impacted efficiency.
“The economic situation clearly deteriorated in May and June,” stated chief monetary officer Maike Schuh.
Chief government Christian Kullmann added that the quarter was marked by “weak demand and high uncertainty.”
Despite the weaker quarter, Evonik maintained its full-year steerage for adjusted EBITDA however now expects outcomes on the decrease finish of its projected vary of €2 billion to €2.3 billion, assuming the worldwide economic system doesn’t weaken additional.
The adjusted EBITDA margin for the quarter was 14.5%, barely beneath the 14.7% reported within the prior-year interval.
Net revenue improved to €120 million, in contrast with a €5 million loss within the second quarter of 2024, which had been impacted by provisions associated to the corporate’s cost-cutting program.
Return on capital employed is predicted to be consistent with final yr’s 7.1%. The firm nonetheless targets a full-year money conversion price of round 40%.
In the Custom Solutions phase, income declined 7% to €1.37 billion, pushed by decrease volumes and foreign money results.
Demand was weaker for components utilized in polyurethane foams, client durables and coatings. Adjusted EBITDA fell 10% to €254 million, with the margin slipping to 18.6% from 19.1%.
The Advanced Technologies phase reported a 1% decline in income to €1.51 billion.
While Animal Nutrition volumes elevated and the hydrogen peroxide enterprise benefited from a license settlement, total gross sales within the Inorganics division have been down because of demand weak point.
Organics gross sales declined amid aggressive strain and a deliberate upkeep shutdown.
Adjusted EBITDA was flat at €266 million, supported by contractually agreed one-off revenue. The margin edged as much as 17.6% from 17.4%.
