Ever-Glory International Group, Inc.

Evonik did not repeat full Q1 revenue or EPS figures on this call, but management said earnings were up close to 30% year over year. Free cash flow was more than EUR 100 million higher than the prior year, aided by a lower net working capital outflow and lower tax cash outflows, partly offset by higher CapEx. For Q2, management expects EBITDA to be on a similarly solid level as Q1, though it will be held back by planned maintenance shutdowns in methionine, crosslinkers and the C4 chain, which Maike Schuh quantified at roughly EUR 20 million in total. The company kept its full-year guidance range unchanged, saying guidance is still well underpinned and that any macro recovery would add upside rather than being required to hit the target.

Christian Kullmann framed the quarter as proof that Evonik’s business mix and self-help actions are working, especially in Specialty Additives and Nutrition & Care. He emphasized volume recovery, pricing discipline, operating leverage, and contingency measures, and said the company will see a ramp-up from the EUR 400 million Tailor Made program from the end of the year. His tone was confident but still cautious on macro conditions, repeatedly saying there is no broad-based recovery visible yet and that the company is staying conservative.

Maike Schuh focused on cash generation and working capital. She said free cash flow was more than EUR 100 million above last year, helped by higher earnings and a lower net working capital outflow despite some restocking, while lower tax outflows helped offset a higher CapEx cash outflow that was mainly timing-related. She said the company still expects lower cash outflow for CapEx and taxes for the full year and reiterated a 40% cash-conversion aspiration. On restructuring, she said ETM had zero impact in Q1, Animal Nutrition’s EUR 60 million full-year EBITDA/cost improvement should be viewed quarterly, and the Q2 maintenance impact across methionine, crosslinkers and C4 is roughly EUR 20 million.

Analysts pressed on demand trends, Q2 visibility, and the impact of shutdowns. Management said order trends are slightly better but still very short-term, with smaller volumes and only a limited visibility window, while end markets remain mixed by region and business line. On the shutdowns, Maike Schuh estimated roughly EUR 20 million total for methionine, crosslinkers and C4. They also addressed methionine logistics and Chinese competition by pointing to regionalization, import taxes, and capacity closures across peers, arguing that these factors limit China’s ability to keep taking share quickly.