Germany's Evonik posts profit beat as Iran conflict drives stockpiling among customers

Evonik Industries AG

08/05/2026 06:00

May 8 (Reuters) - German chemicals group Evonik EVKn.DE reported first-quarter core profit above market expectations on Friday, supported by short-term customer stockpiling in response to supply chain disruptions caused by conflict in the Middle East.

The Essen-based group said it recorded a spike in sales since March due to supply-chain uncertainty linked to the Iran war, echoing first-quarter comments from Dutch peer dsm-firmenich DSFIR.AS.

"(The free movement of goods) was already severely restricted by protectionism. Now, a war in the Middle East is adding to the problem, blocking entire sea lanes," CEO Christian Kullmann said in a statement.

"This is an additional risk," he added.

Evonik said it expects second-quarter core profit to rise 8% year-over-year to at least 550 million euros ($647 million), projecting it to be the strongest quarter of the fiscal year.

In the first quarter, Evonik's adjusted earnings before interest, taxes, depreciation and amortization fell 15% to 475 million euros, beating analysts' forecast of 448 million euros from analysts polled by Vara research.

The German chemical sector, the country's third largest industry, has been struggling for years with subdued demand coupled with high energy costs, supply chain issues and a sluggish economy.

A Reuters analysis of actions taken by around 200 companies globally in the first financial quarter shows that chemicals players are among the hardest hit. Of the 29 actions tracked in the sector, just over half involved financial pressure, guidance cuts or price hikes in response to rising costs of fuel and other petrochemicals.

To manage costs, Evonik is cutting 1,000 jobs this year under an ongoing restructuring program. The group also amended its dividend policy in February down to 1 euro per share, its lowest since 2014.

($1 = 0.8497 euros)

Evonik outperforms European chemical peers in 2026 https://www.reuters.com/graphics/EVONIK-RESULTS/akpeyrybjpr/chart.png

 (Reporting by Dimitri Rhodes in Gdansk; Editing by Christoph Steitz)

 ((Dimitri.Rhodes@thomsonreuters.com))