Evonik Industries AG
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About the company
Evonik Industries AG is a prominent company specializing in the field of chemical production. Its operations are divided into five principal business segments: Specialty Additives, Nutrition & Care, Smart Materials, Performance Materials, and Technology & Infrastructure. The Specialty Additives division is responsible for supplying a variety of advanced chemical compounds, such as polyurethane enhancers, organically modified silicones, isophorones, epoxy curing agents, oil performance additives, fumed silicas, matting agents, TAA and its derivatives, and acetylenic diol-based surfactants.
- CEO
- Christian Kullmann
- IPO
- 2021
- Employees
- 31,053
- HQ
- Essen, NW, DE
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- Market Cap
- $9.84B
- P/E
- 71.38
- Fwd P/E
- 13.84
- PEG
- -1.00
- P/S
- 0.61
- P/B
- 1.09
- EV/EBITDA
- 6.00
- Div Yield
- 5.42%
- Gross Margin
- 22.18%
- Op Margin
- 5.92%
- Net Margin
- 0.86%
- ROE
- 1.49%
- ROIC
- 2.66%
Latest fiscal year · YoY change
- Revenue
- $14.07B-7.2%
- Gross Profit
- $3.24B-13.2%
- Op Income
- $641.00M
- Net Income
- $265.00M+19.4%
- EPS
- $0.28+16.7%
- OCF Growth
- -15.8%
- FCF Growth
- -20.4%
- 52W High
- $10.80
- 52W Low
- $7.24
- 50D MA
- $9.59
- 200D MA
- $8.95
- Beta
- 0.39
- RSI (14)
- 61
- Avg Volume
- 17.11K
Earnings call summaries
Pick a quarter — each call distilled into takeaways, results, and a bull vs bear read.
Evonik posted a Q2 beat, with adjusted EBITDA up 24% year over year to EUR 630 million, and raised its outlook as methionine, Advanced Technologies, and cost actions all supported results.· August 4, 2026
- Adjusted EBITDA rose 24% year over year to EUR 630 million in Q2, described as the best quarterly result in 4 years.
- Management raised the midpoint of full-year adjusted EBITDA guidance by EUR 250 million and said Q3 could be similar to Q2, with some fourth-quarter normalization.
- Methionine remained a major earnings driver, with management saying strength should continue into Q3 and that 2026 should be materially better than most expected.
- Cash generation improved significantly; management said first-half cash performance supports around 40% cash conversion for the full year.
- Evonik expanded Tailor-made and announced another 3,200 workforce reductions between 2027 and 2029, while emphasizing portfolio optimization through Oxeno and SYNECT divestments.
Q2 adjusted EBITDA was EUR 630 million, up 24% year over year, driven by 7% higher volumes and 7% higher prices; Advanced Technologies had a strong quarter, helped by methionine, crosslinkers, polymers, C4, and cost savings. Management said first-half adjusted EBITDA totaled EUR 1.1 billion and that the full-year EBITDA outlook midpoint was raised by EUR 250 million. Cash generation improved significantly year over year, and management reiterated full-year cash conversion guidance of around 40%. On the balance sheet, management said seasonal net financial debt increase was less pronounced than in prior years thanks to cash generation and a lower dividend payment; they also said a EUR 1 interim dividend for 2026 will apply, with the new dividend policy first taking effect in May 2027. For outlook, Q3 is expected to remain strong, possibly similar to Q2, with some normalization in Q4; cash guidance is reiterated despite a temporary net working capital headwind from cost and price inflation.
Christian Kullmann stressed execution, cost reduction, portfolio optimization, and disciplined cash management as the core of the strategy. He said Evonik is actively addressing structural challenges, has extended Tailor-made, fully carved out Oxeno and SYNECT, and reorganized innovation to support long-term growth. His tone was confident but cautious: he highlighted strong Q2 momentum while warning that visibility remains subdued and some normalization is likely later in the year.
Michael Rauch highlighted the Q2 beat and said adjusted EBITDA rose to EUR 630 million, with higher volumes and prices each contributing 7 percentage points to the increase. He emphasized better cash conversion, saying operating results converted well into cash, working capital is under control, and lower bonus payments, customer prepayments, and higher noncash provisions helped free cash flow. He reiterated around 40% cash conversion for the year, said the seasonal net debt increase should be smaller than usual, and noted that share buybacks are not currently on the agenda because the company still has sizable net debt.
Analysts focused heavily on methionine, asking how long current pricing strength can last and whether 2027 could bring a pullback. Management said Q3 should remain strong, with positive price effects flowing through and much of the volume already booked, but also said a shakeout in 2027 could pressure smaller competitors and affect market dynamics. Questions also targeted Tailor-made savings, where management said inflation has reduced the net savings impact versus earlier assumptions, and said additional savings must come from structural improvements, not just cost cuts. On capital allocation, management said buybacks remain off the table for now, while on Oxeno it said the goodwill impairment reflects long-term challenges despite temporarily better 2026 results.
The call pointed to real operational momentum: Q2 was a clear beat, methionine stayed exceptionally strong, and management said Q3 should remain at about the same level as Q2. Cash generation was also better than expected, supporting the full-year cash conversion target. Management sounded confident that portfolio actions, workforce reductions, and cost programs can improve financial KPIs over time.
Management repeatedly warned that structural challenges remain, visibility is still limited, and some second-half normalization is expected after a strong run. The methionine strength is not assumed to last forever, with management explicitly talking about a possible shakeout in 2027 and some impact on markets next year. Cost savings from Tailor-made are also harder to see in the P&L because inflation has offset part of the benefit, and the company still sees sizable net debt, limiting capital return options like buybacks.
AI summary of the company's earnings call · Paraphrased · Not investment advice
- Free Float
- 26.8%
- Shares Outstanding
- 932.00M
- Float Shares
- 250.00M
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