Evonik beats Q2 estimates as European customers seek suppliers close to home amid Iran war (updated)

Evonik Industries AG

04/08/2026 12:19

Adds CEO quotes in paragraphs 4,9, background on sector in paragraph 5, details on low water level in Rhine in paragraph 10
By Anastasiia Kozlova and Matthias Inverardi
Aug 4 (Reuters) - German chemicals group Evonik Industries EVKn.DE on Tuesday beat second-quarter core profit expectations as global supply chain bottlenecks in the Middle East amid the Iran war boosted demand in Europe for its locally made products.  
The company reported adjusted earnings before interest, taxes, depreciation and amortization of €630 million ($725 million), above analysts' average estimate of €621 million in a Vara Research poll, and at the mid-point of the pre-released range.
The supply chain bottlenecks triggered by the Middle East conflict prompted more European customers to seek suppliers closer to home, it said.
"Q3 earnings could be similar to Q2 earnings with maybe even a slightly more upside than downside," CEO Christian Kullmann said on a conference call.

        Evonik joins a growing number of chemicals companies that have reported resilient second-quarter results, with some peers even raising their 2026 outlooks. Companies across the sector, however, remain cautious about the months ahead amid persistent geopolitical uncertainty and a fragile macroeconomic environment.

        Against that backdrop, Evonik is pressing ahead with its restructuring programme, which it expanded in June and which aims to cut 3,200 jobs worldwide by 2029.
The company said it has already reduced its workforce by nearly 700 employees since the start of 2026.
Evonik also reaffirmed its 2026 adjusted EBITDA guidance, which it lifted in June.

        RHINE TRANSPORT CONCERNS

        Evonik expects only a limited impact from low water levels on the river Rhine, although freight costs could rise, Kullmann said on a conference call.

        Record low water levels on the Rhine, a vital artery for Germany's industrial sector, have emerged as another challenge for Germany's economy, disrupting logistics for chemical companies that depend on the river for shipments.

($1 = €0.8690)

 (Reporting by Anastasiia Kozlova and Matthias Inverardi; Editing by Matt Scuffham, Milla Nissi-Prussak and Susan Fenton)
 ((Anastasiia.Kozlova@thomsonreuters.com))