Evonik Industries AG Overview
Evonik is Germany's second-largest listed chemicals group after BASF and one of Europe's broadest pure-play specialty chemicals companies, generating €14.1bn of sales and €1.87bn adjusted EBITDA in FY2025. Since April 2025 it has been organised into two operating segments — Custom Solutions (formulated, application-driven specialties for coatings, personal care, pharma, and industrial additives) and Advanced Technologies (scale- and technology-driven platforms in silica, hydrogen peroxide, high-performance polymers, crosslinkers and animal-nutrition amino acids) — plus an Infrastructure segment (SYNEQT site services, Oxeno C4 chemicals) earmarked for divestment. Its competitive identity rests on deep process know-how, integrated German Verbund sites (Marl, Wesseling, Rheinfelden, Essen, Hanau), and leadership positions in global niches (fumed silica, DL-methionine, PA12, pharma excipients/lipids). The investment case is a transformation story — €400m-plus cost reduction, portfolio pruning, deleveraging — now overlaid by a live takeover approach from BASF and a near-majority foundation shareholder whose stance is pivotal.
Company self-description
Evonik describes itself as a global chemical company that goes "beyond chemistry" by combining innovative strength with leading technological expertise, providing customers with a competitive advantage through tailor-made products and solutions — positioning itself as a "superforce for industry" (company boilerplate, press releases 2026; Company Factbook 2026). Its stated strategic pillars (Capital Markets Day, 22 May 2025) are: a differentiated portfolio in two segments, sustainable innovation, a balanced regional footprint (ambition of roughly one-third of sales in each of Americas, EMEA and Asia-Pacific), and a performance culture.
Independent characterisation
Evonik is a mid-cap, diversified specialty and "semi-specialty" chemicals manufacturer. Roughly 80% of FY2025 sales (€11.5bn of €14.1bn) came from the two core segments; the remaining ~18–19% came from Infrastructure & Other, which bundles low-margin site services and the cyclical C4 (Oxeno) petrochemical chain. The business is overwhelmingly a product business (manufactured chemicals sold B2B under supply contracts, frame agreements and spot), with smaller service/contract components: (i) pharma CDMO and contract manufacturing (Health Care — lipids/LNPs, drug substances, oral drug delivery), (ii) site infrastructure and utility services sold by SYNEQT to ~two dozen third-party companies in the Marl and Wesseling chemical parks, and (iii) licensing/technology (e.g., HPPO hydrogen peroxide technology with partners; catalysts). Subscription revenue is negligible. Precise revenue-model split (product vs service vs licensing) is n/d.
Value-chain position
Evonik sits mid-stream: it buys petrochemical feedstocks (C4 raffinate, propylene, methanol, ammonia, natural gas/energy, silicon metal, sulphur) and converts them into intermediates and formulated specialties sold to formulators and OEMs. Upstream integration is partial (own C4 cracking downstream of refinery/cracker streams at Marl and Antwerp; own HCN and methionine chain in Antwerp, Mobile and Singapore). Downstream, it rarely sells to consumers; its products are ingredients typically <5% of the customer's cost but critical to performance ("small cost share, high value-in-use"), which supports pricing power in the specialty businesses.
Customer types and end markets
Customers include paint and coatings formulators, adhesives and sealants makers, tyre and rubber producers (silica/silanes), cosmetic and household-care brands, pharmaceutical and biotech companies (excipients, lipids, CDMO), animal-feed mills and integrators (methionine), plastics and automotive suppliers (PA12, PEEK), aerospace (ROHACELL foams), pulp & paper, electronics and semiconductors (high-purity silanes/chlorosilanes, H2O2), renewable energy and hydrogen (membranes, catalysts), and biodiesel producers (alkoxide catalysts). End-market exposure is broad: consumer/personal care, health care, food/feed, automotive and mobility, construction, coatings, industrial, energy/agriculture. A precise end-market % split for FY2025 is n/d in sources reviewed.
Strategy
Stated strategy (themes from Annual Report 2025, CMD May 2025, strategy update Sep 2026)
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Two-segment portfolio logic: Custom Solutions as the growth driver with superior EBITDA growth; Advanced Technologies as the financing engine with superior cash-flow generation (Company Presentation 2026).
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Role-based portfolio management (Sep 2026): Every business line explicitly managed as a "growth driver" or "cash generator"; exit from activities without prospects inside Evonik (e.g., polyester).
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Sustainable innovation: Three innovation growth areas (biosolutions, hydrogen/energy transition, circularity/recycling); Next Generation Solutions (NGS) share target >50% of sales by 2030 (current ~48%).
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Balanced regional footprint: Aim for roughly one-third of sales per region; growth projects focused on Asia and the Americas.
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Efficiency and culture: "Evonik Tailor Made" — fewer hierarchy levels (from average 10 to max 6), merged administration, phase 2 through 2029.
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Financial discipline: Deleverage first, no M&A planned before 2027 (management statement; S&P June 2026 confirms no planned mergers), solid investment-grade rating.
Strategic initiatives — last 24 months
| Initiative | Announced | Targets / scope | Status |
|---|---|---|---|
| Evonik Tailor Made phase 1 | Mar 2024 | ~2,000 admin jobs (later ~2,800 incl. business programmes, Oct 2023–end 2026); ~€400m annual savings by end-2026 | On track per Q1 2026 (third and final year); ~700 headcount reduction in H1 2026 |
| Two-segment reorganisation | Dec 2024 | Effective 1 Apr 2025 | Implemented |
| CMD "+€1bn EBITDA by 2027" | 22 May 2025 | +€1bn adj. EBITDA vs 2023 base (€1.66bn), half growth/half optimisation; ROCE ~11%; CCR >40% | 2026 guidance midpoint €2.1bn ≈ +€0.44bn vs base — target looks stretched |
| SYNEQT carve-out | Aug 2025 → 1 Jan 2026 | Marl/Wesseling infrastructure into standalone subsidiary | Operating; divestment/financing options under review |
| Oxeno (C4) separation and sale | May 2025 onward | ~€1.9bn sales business to be divested | Investor talks reported; sale process may run into 2027; impaired |
| New dividend policy | 5 Feb 2026 | 40–60% of adjusted net income from FY2026 | Approved/communicated at AGM 3 Jun 2026 |
| Innovation reorganisation | Apr 2026 | Strategic research unit (Creavis) transformed into market-oriented innovation unit ("Innovation Factory") | Implemented |
| Tailor Made phase 2 | 18 Jun 2026 | ~3,200 jobs 2027–2029 (2,150 Germany); efficiency, digitalisation, outsourcing, possible offshoring | Detailed measures by end-2026 |
| Polyester exit | 18 Jun 2026 | Discontinue global polyester business (~€150m sales) in 2027 | Witten closure 2027 |
| German site consolidation | 11 Sep 2026 | Close Hamburg (mid-2027) and Bitterfeld (Apr 2027) | Negotiations with works councils |
| Strategy 2030 update | 23 Sep 2026 | Growth vs cash roles; Designed Polymer Solutions; site role profiles; three-digit €m growth projects in Canada and Slovakia | Launched |
| Green hydrogen AEM membrane | Jun 2026 | Pilot production at Marl | Pilot |
| Pharma investments | Jul–Aug 2026 | Tippecanoe US$100m; Vancouver US$109.5m | Under way |
Sustainability commitments
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€3bn investment in Next Generation Solutions by 2030 (≈80% of growth capex).
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Green Finance Framework: green bonds 2022/2027 and 2025/2030; green hybrid bonds 2021/2081 and 2025/2055.
Medium-term financial targets and guidance
| Target / guidance | Value | Source |
|---|---|---|
| FY2026 adjusted EBITDA | €2.0–2.2bn (raised 26 Jun 2026 from €1.7–2.0bn) | Ad hoc, Q2 2026 report |
| FY2026 sales | ~€15bn (earlier €13.5–14.5bn) | Q2 2026 call summary |
| FY2026 cash conversion rate | ~40% | Q2 2026 |
| FY2026 capex | ~€750m | Q2 2026 |
| FY2026 adjusted tax rate | ~25% | Q2 2026 |
| Q3 2026 earnings | Expected similar to Q2; normalisation in Q4 | Q2 2026 call |
| ROCE (medium term) | ~11% (FY2025: 6.1%) | FY2025 release |
| Adjusted EBITDA uplift | +€1bn by 2027 vs 2023 | CMD 2025 |
| Adjusted EBITDA margin (long-standing ambition) | 18–20% | 2022 strategy |
| Dividend payout | 40–60% of adjusted net income | Feb 2026 |
Products & Services
Brand names below are Evonik registered trademarks drawn from company product literature; launch years and pricing are generally not disclosed (n/d). Pricing model across the catalogue is B2B contract/list pricing; Evonik does not publish prices, except announced price increases (e.g., MetAMINO +10% globally in 2026, per press coverage).
Custom Solutions
| Business line / product family | Flagship brands | Description & capabilities | Target customers | Notes |
|---|---|---|---|---|
| Coating Additives | TEGO (wetting/dispersing agents, defoamers, deaerators, flow/levelling), ACEMATT (matting agents), AEROSIL for coatings (rheology), silicone resins (SILIKOPHEN, SILIKOFTAL) | Surface-active additives, matting silicas, rheology modifiers, co-binders | Architectural, industrial, automotive coatings; inks | Among global leaders in coating additives (alongside BYK) |
| Interface & Performance | TEGOSTAB (PU foam stabilisers), polyurethane additives, industrial surfactants, agro-adjuvants (BREAK-THRU) | Silicone and organic surfactants, foam control, PU process additives | PU foam makers (furniture, insulation, automotive), agrochemicals, industrial cleaning | Agro hub opened in Americana, Brazil |
| Oil Additives | VISCOPLEX, DYNAVIS | Viscosity index improvers, pour-point depressants | Lubricant formulators, hydraulic fluids, driveline | Specialty methacrylate polymers |
| Care Solutions | TEGOSOFT (emollients), TEGO Betain, ABIL, Dr. Straetmans preservation, RHEANCE (biosurfactants: rhamnolipids, sophorolipids), cosmetic actives (ceramides, peptides) | Ingredients for skin/hair care, mild cleansing, natural-based actives | Personal-care and household brands | Biosurfactant plant at Slovenská Ľupča (Slovakia); Hamburg site to close mid-2027, activities moving to Essen-Goldschmidtstraße |
| Health Care — Drug Delivery | EUDRAGIT (functional polymethacrylate coatings), RESOMER (bioresorbable polymers), lipids (phospholipids, ionizable/cationic lipids for LNPs) | Oral controlled-release, parenteral depot, mRNA/LNP formulation | Pharma and biotech | Vancouver LNP drug-product facility expansion (US$109.5m, announced 27 Aug 2026) |
| Health Care — CDMO & APIs | Drug substance manufacturing (Tippecanoe/Lafayette, Indiana); pharma amino acids & cell culture ingredients (REXIM; cQrex peptides) | Custom synthesis, high-potency API, amino acids | Pharma, biopharma | US$100m Tippecanoe modernisation over five years (announced 8 Jul 2026); Brenntag Pharma exclusive distributor for Rexim amino acids (from 1 Jul 2026); selected Hanau pharma assets sold to ProChem Group (closing June 2026) |
| Health Care — Biomanufacturing | Protein expression kits, fermentation (Fermas, Slovakia) | Biotech platform and contract fermentation | Biopharma | New protein expression kit launched July 2026 |
| Coating & Adhesive Resins | DYNACOLL, DYNAPOL (polyester resins); VESTOPLAST (APAO) | Copolyesters for coatings, hot-melt adhesives | Can/coil coatings, adhesives | Global polyester business to be discontinued in 2027 (~€150m sales, loss-making); Witten site closure |
Advanced Technologies
| Business line / product family | Flagship brands | Description & capabilities | Target customers | Notes |
|---|---|---|---|---|
| Silica | AEROSIL (fumed silica), ULTRASIL (precipitated silica for "green tyres"), SIPERNAT, ACEMATT | Reinforcement, rheology, free-flow, matting | Tyres, silicones, coatings, food/pharma, batteries | Includes former J.M. Huber silica assets |
| Silanes | Dynasylan, Si 69 / VP Si 363 (rubber silanes), chlorosilanes | Coupling agents, adhesion promoters, high-purity silicon tetrachloride | Tyre, construction, fibre optics, electronics | Bitterfeld chlorosilanes site closing end-April 2027; supply from Rheinfelden |
| Active Oxygens | Hydrogen peroxide, peracetic acid (PERACLEAN / VIGOROX), persulfates | Bleaching, disinfection, propylene-oxide (HPPO) feedstock, electronics-grade H2O2 | Pulp & paper, chemical (HPPO), water treatment, food safety, semiconductors | Strengthened via PeroxyChem (2020) |
| Catalysts | Activated base-metal catalysts, alkoxides (for biodiesel), refinery/hydroprocessing catalyst services (Porocel) | Process catalysts, catalyst rejuvenation | Refiners, biodiesel and chemical producers | Alkoxide production at Mobile (US) and Rosario (Argentina); Lülsdorf toll production for Evonik until 2027 |
| High Performance Polymers | VESTAMID (PA12, PA1010, PA612), VESTAKEEP (PEEK), VESTOSINT (powders for 3D printing), INFINAM (3D-printing materials) | Engineering polymers for fluid lines, offshore pipes, medical implants, additive manufacturing | Automotive, oil & gas, medical, electronics, 3D printing | Major PA12 capacity at Marl (expansion commissioned 2024) |
| Membranes / gas separation | SEPURAN (Green, N2, Noble), DURAMEM, PURAMEM; AEM anion-exchange membrane for electrolysis | Biogas upgrading, nitrogen generation, helium/hydrogen recovery, green hydrogen electrolysers | Biogas plants, industrial gases, electrolyser OEMs | AEM membrane pilot production at Marl; company claims ~25% lower green-H2 cost potential (June 2026). To be bundled into new Designed Polymer Solutions line |
| Rigid foams | ROHACELL (PMI structural foam) | Lightweight sandwich cores | Aerospace, automotive, medical imaging | To be bundled into Designed Polymer Solutions |
| Crosslinkers | VESTANAT (IPDI, aliphatic isocyanates), VESTAMIN (IPD amines), epoxy curing agents (ANCAMINE, ANCAMIDE — ex Air Products) | Light-stable PU coatings, composites, wind-blade epoxies | Coatings, composites, flooring, construction | — |
| Animal Nutrition | MetAMINO (DL-methionine), Mepron (rumen-protected methionine), AMINOPigs/AMINOSys? feed-formulation services, Veramaris algal omega-3 (JV) | Essential amino acid supplementation; digital nutrition services | Feed mills, poultry/swine/aquaculture integrators | World-scale methionine complexes in Antwerp, Mobile, Singapore; MetAMINO prices raised ~10% globally in 2026 (press) |
Infrastructure (held for divestment)
| Unit | Description | Customers | Status |
|---|---|---|---|
| SYNEQT GmbH | Utilities, energy, logistics, waste, maintenance, safety and site services for Marl and Wesseling chemical parks; industrial hydrogen network | Evonik plus about two dozen third-party park tenants (Marl park ~20 companies, ~10,000 staff; Wesseling ~5 companies, ~1,450 staff) | 100% Evonik subsidiary since 1 Jan 2026; ~3,500 employees; ~€1.8bn sales (2024 basis); divestment/partnering in preparation |
| Evonik Oxeno GmbH (C4 chain) | Butadiene, 1-butene, MTBE/isobutene, INA and plasticiser alcohols, DINP-type plasticisers (VESTINOL) at Marl and Antwerp | Tyre/rubber, plastics, fuels, coatings | ~€1.9bn sales (2024, per CMD); separated in 2026; sale process to start/continue (possibly 2027); book value impaired to ~€50m (Q2 2026 call summary) |
Financial Narrative
Primary source: Evonik "Finanz- und Nachhaltigkeitsbericht 2025" key-figures table (T01) and Evonik Financials Q4 2025/Q2 2026 KPI files. Items not found in those sources are flagged n/d.
Income statement: notes and sources
Notes: FY2024 adjusted net income computed from the reported FY2025 figure (€634m, –18% YoY). Pre-tax income is n/d in sources reviewed. Gross profit is not a KPI Evonik headlines; see the income statement in each annual report.
Margin analysis (%)
CAGR (computed): Sales FY2021–FY2025 CAGR –1.5%; adjusted EBITDA CAGR –5.8%; adjusted EBIT CAGR –10.4%.
Commentary — income statement. The five-year series traces a full chemicals cycle. FY2022 sales jumped 24% on inflation-driven price pass-through (energy and raw materials after Russia's invasion of Ukraine), but margin compressed to 13.5% as costs outran prices. FY2023 was the trough: sales fell 17% (volumes –8%, prices –3% plus disposals), adjusted EBITDA fell to €1.66bn, and impairments drove a €465m net loss and negative reported EBIT. FY2024 was a self-help recovery (+25% adjusted EBITDA) driven by cost discipline and volume recovery. FY2025 relapsed (–9% adjusted EBITDA) as tariff uncertainty, weak European demand and FX hit H2; the year closed with Q3 adj. EBITDA of €448m (–22%) and Q4 €357m (–8%). The structural signal is that adjusted EBITDA margins have not regained the 2021 level of 16%, far below the 18–20% medium-term ambition set in 2022, while depreciation (€1.0bn per year) keeps adjusted EBIT margins in single digits. Reported net income has been persistently far below adjusted net income because of restructuring, impairment and divestment-related special items (FY2025: €265m reported vs €634m adjusted).
Balance sheet
Additional verified balance-sheet datapoints:
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Net financial debt: €3,212m (31 Mar 2024); €3,611m (30 Jun 2024); €3,058m (31 Mar 2025); €3,864m (30 Jun 2025); €3,311m (31 Dec 2025); €3,620m (30 Jun 2026). Sources: Evonik Q1 2025 statement, Q2 2025 fact sheet, Q2 2026 call summary.
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Equity ratio 42.88% at FY2025 (comdirect data, aggregator).
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NWC/sales ~18% at end-2024 (Q1 2025 earnings call presentation).
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Pension provisions are material (German defined-benefit plans) but n/d in sources reviewed.
Commentary — balance sheet. Net financial debt has oscillated in a €3.0–3.9bn band, with a seasonal Q2 peak (bonus and dividend payments) and year-end troughs. FY2025 year-end net debt of €3.31bn equals 1.77x adjusted EBITDA (computed, excluding pensions). The June 2026 figure (€3.62bn) equals ~1.9x LTM adjusted EBITDA (computed LTM ≈ €1,910m). Moody's cited Moody's-adjusted gross leverage moving sustainably below 2.5x as the trigger for its August 2026 upgrade. Large goodwill from the Air Products and Huber deals sits mostly in Custom Solutions and silica; impairments in 2023 and on Oxeno in 2026 indicate asset-value risk concentrated in commodity-exposed units.
Cash flow
Quarterly FCF (EUR m): Q1 2025 195; Q2 2025 –211; Q3 2025 300; Q4 2025 411; Q1 2026 183; Q2 2026 49 (H1 2026: 232). Quarterly capex cash-out: Q1 2025 190; Q2 2025 176; Q2 2026 180; H1 2026 356. 2026 capex guidance ~€750m. Operating cash flow continuing ops: Q1 2025 €385m (Q1 2024 €378m). No share buybacks have been disclosed; Evonik's capital return is dividend-only.
Commentary — cash flow. Evonik's cash generation has been more resilient than its earnings: FCF stayed between €695m and €950m through the cycle, and the cash conversion rate (Evonik's own KPI) has averaged 40%. The weak spot is coverage of the dividend: at €1.17 per share (€545m) the dividend absorbed 62–79% of FCF in FY2022–FY2025, leaving little for deleveraging or growth capex — the explicit rationale for the February 2026 switch to a 40–60% payout of adjusted net income. FY2025 FCF of €695m covered the €545m cash dividend paid in 2025 by only ~1.3x.
Return and efficiency ratios
ROE, ROA, ROIC, current ratio, debt/equity, interest coverage and cash conversion cycle cannot be computed reliably without verified total assets, equity, current assets/liabilities and interest expense; they are n/d. Indicative: FY2024 adjusted net financial result was –€143m (Q2 2025 fact sheet), implying adjusted EBIT interest coverage of ~7.2x for FY2024 (computed). Average capital employed (annual) for FY2025: Custom Solutions ~€6.05bn; Advanced Technologies ~€6.91bn (KPI file; mapping of the two figures to segments inferred from table order).
Commentary — returns. ROCE of 6.1% in FY2025 is well below Evonik's own ~11% medium-term target and below a typical chemicals cost of capital (8–9%), confirming that the group has been destroying economic value at trough earnings. Management's plan to close the gap rests on the €1bn EBITDA uplift programme, exiting low-return Infrastructure/C4 capital, and capex discipline (€750m in 2026 vs ~€1bn+ in 2022–2023).
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Segment Overview
| Segment | Sub-units (as reported in KPI file) | Content | Board responsibility |
|---|---|---|---|
Custom Solutions | Additives; Care | Coating additives, interface & performance (surfactants, PU additives), oil additives, care solutions (cosmetic actives, emollients, biosurfactants), health care (drug delivery, lipids, CDMO, amino acids), coating & adhesive resins (polyesters — exiting 2027) | Lauren Kjeldsen |
Advanced Technologies | Organics; Inorganics; Animal Nutrition | High performance polymers (PA12, PEEK, foams, membranes), crosslinkers, silica, silanes, active oxygens (H2O2), catalysts, animal nutrition (methionine and related) | n/d verified |
Infrastructure & Other | Infrastructure (SYNEQT + Oxeno businesses); Other/corporate | Site services Marl/Wesseling (SYNEQT), C4 chain (Oxeno: butadiene, butenes, MTBE, plasticiser alcohols), remaining Antwerp infrastructure; corporate costs | Thomas Wessel (Infrastructure) |
Revenue by Segment
| Segment (sales, EUR Mn) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Advanced Technologies sales | — | 6,089 | 5,970 |
Custom Solutions sales | — | 5,737 | 5,490 |
Infrastructure & Other sales | 3,675 | 3,331 | 2,604 |
of which Infrastructure sales | — | 3,146 | 2,449 |
Group sales | 15,267 | 15,157 | 14,069 |
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View Subscription PlansResults by Segment
| Segment (adj. EBITDA, EUR Mn) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Advanced Technologies adj EBITDA (computed residual) | 1,201 | 1,204 | 750 | 1,023 | 944 |
Custom Solutions adj EBITDA | 1,086 | 1,162 | 852 | 978 | 909 |
Infrastructure & Other adj EBITDA | 96 | 124 | 54 | 64 | 21 |
Group adj EBITDA | 2,383 | 2,490 | 1,656 | 2,065 | 1,874 |
Segment Margins & Growth (%) and Revenue by Segment (%)
| Metric (%) | FY2024 | FY2025 |
|---|---|---|
Advanced Technologies adj EBITDA margin | 16.8 | 15.8 |
Custom Solutions adj EBITDA margin | 17.0 | 16.6 |
Advanced Technologies sales growth YoY | — | -2 |
Custom Solutions sales growth YoY | — | -4 |
Advanced Technologies share of group sales | 40.2 | 42.4 |
Custom Solutions share of group sales | 37.9 | 39.0 |
Infrastructure & Other share of group sales | 22.0 | 18.5 |
Segment Revenue
| Metric | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 |
|---|---|---|---|---|---|---|
Group sales | — | 3,507 | — | — | 3,430 | 3,893 |
Group adj EBITDA | 560 | 509 | 448 | 357 | 475 | 630 |
Custom Solutions adj EBITDA | 256 | 254 | 215 | 184 | 227 | 271 |
Infrastructure & Other adj EBITDA | 13 | -11 | 31 | -13 | 7 | 26 |
Advanced Technologies adj EBITDA (computed) | 291 | 266 | 202 | 186 | 241 | 333 |
Infrastructure sales | 708 | 584 | 574 | 583 | 577 | 749 |
Income Statement and Margin Analysis (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Sales (EUR Mn) | 14,955 | 18,488 | 15,267 | 15,157 | 14,069 |
Sales growth YoY (%) (computed) | — | 23.6 | -17.4 | -0.7 | -7.2 |
Adjusted EBITDA (EUR Mn) | 2,383 | 2,490 | 1,656 | 2,065 | 1,874 |
Adjusted EBIT (EUR Mn) | 1,338 | 1,350 | 521 | 1,027 | 861 |
EBIT, continuing operations (EUR Mn) | 1,173 | 942 | -243 | 577 | 578 |
Net income attributable to shareholders (EUR Mn) | 746 | 540 | -465 | 222 | 265 |
Adjusted net income (EUR Mn) | — | — | — | 773 | 634 |
EPS basic (EUR) (computed, 466m shares) | 1.60 | 1.16 | -1.00 | 0.48 | 0.57 |
EPS diluted (EUR) (no dilutive instruments; = basic) | 1.60 | 1.16 | -1.00 | 0.48 | 0.57 |
Dividend per share (EUR) | 1.15 | 1.17 | 1.17 | 1.17 | 1.00 |
R&D expense (EUR Mn) | 464 | 460 | 443 | 459 | 418 |
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View Subscription PlansMargin Analysis (%)
| Metric (%) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Adjusted EBITDA margin | 15.9 | 13.5 | 10.8 | 13.6 | 13.3 |
Adjusted EBIT margin (computed) | 8.9 | 7.3 | 3.4 | 6.8 | 6.1 |
EBIT margin (computed) | 7.8 | 5.1 | -1.6 | 3.8 | 4.1 |
Net margin (computed) | 5.0 | 2.9 | -3.0 | 1.5 | 1.9 |
R&D intensity (computed) | 3.1 | 2.5 | 2.9 | 3.0 | 3.0 |
Margin Analysis (%) and Key Financials
| Metric | FY2024 | FY2025 |
|---|---|---|
Equity ratio (%) | — | 42.9 |
Net financial debt (EUR Mn, excl. pensions) | — | 3,311 |
Net working capital / sales (%) | 18 | — |
Cash Flow and Margin Analysis (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Free cash flow (EUR Mn) | 950 | 785 | 801 | 873 | 695 |
Cash conversion rate FCF/adj EBITDA (%) (computed) | 39.9 | 31.5 | 48.4 | 42.3 | 37.1 |
Dividends paid to Evonik shareholders (EUR Mn) (computed, prior-year DPS × 466m) | 536 | 536 | 545 | 545 | 545 |
Share buybacks (EUR Mn) | 0 | 0 | 0 | 0 | 0 |
Returns & Leverage Ratios (%)
| Ratio | FY2024 | FY2025 |
|---|---|---|
ROCE (%) (Evonik definition) | 7.1 | 6.1 |
Net debt / adj EBITDA (x) (computed, excl. pensions) | — | 1.77 |
Dividend payout vs adj net income (%) (computed) | 70.5 | 73.5 |
Revenue by Region
| Region (sales, EUR Mn) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Germany | 2,470 | 2,900 | 2,590 | 2,610 | 2,570 |
Europe Middle East Africa excl Germany | 4,890 | 6,460 | 4,910 | 4,700 | 4,160 |
North America | 3,500 | 4,390 | 3,840 | 3,670 | — |
Central and South America | 684 | 952 | 760 | 849 | — |
Americas combined (computed for FY2025) | 4,184 | 5,342 | 4,600 | 4,519 | 4,129 |
Asia-Pacific | 3,410 | 3,780 | 3,160 | 3,320 | 3,210 |
Group total | 14,955 | 18,488 | 15,267 | 15,157 | 14,069 |
Revenue by Region (%)
| Region (YoY growth %) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Germany | -10.7 | 0.8 | -1.5 |
EMEA excl Germany | -24.0 | -4.3 | -11.5 |
Americas combined | -13.9 | -1.8 | -8.6 |
Asia-Pacific | -16.4 | 5.1 | -3.3 |
Region share (%)
| Region share (%) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Germany | 16.5 | 15.7 | 17.0 | 17.2 | 18.3 |
EMEA excl Germany | 32.7 | 34.9 | 32.2 | 31.0 | 29.6 |
Americas | 28.0 | 28.9 | 30.1 | 29.8 | 29.3 |
Asia-Pacific | 22.8 | 20.4 | 20.7 | 21.9 | 22.8 |
Valuation Snapshot
| Metric | Value | Source |
|---|---|---|
Latest verified price | €19.48 (28 Sep 2026) | Zonebourse/optionfinance |
Year-to-date (to late Sep 2026) | +43% to +47% | goldesel.de |
Price at end-2025 (computed) | ~€13.3 | derived from YTD performance |
1-year (vs ~€14.65 on 9 Oct 2025) | ≈ +33% (computed) | boerse.de tick data |
3-year | n/d verified | — |
5-year | n/d verified (shares traded materially higher in 2021) | — |
52-week range | ~€12.49 – ~€19.6 | comdirect (low); post-approach high |
Market cap | ≈ €9.1bn | computed |
Valuation Multiples
| Multiple | Evonik | Basis |
|---|---|---|
EV | ≈ €12.7bn | €9.08bn + €3.62bn |
EV / adj. EBITDA FY2025 | 6.8x | €1.874bn |
EV / adj. EBITDA FY2026 guidance midpoint | 6.0x | €2.1bn |
EV / Sales FY2026 guide | 0.85x | ~€15bn |
P/E on FY2025 reported net income | 34x | €265m |
P/E on FY2025 adjusted net income | 14.3x | €634m |
BASF indicative price implied EV/EBITDA (FY2026 midpoint) | ≈ 6.6x | €22.15 × 466m + €3.62bn |
Peer multiples | n/d verified | — |
Analyst Ratings & Targets
| Broker | Rating | Target (EUR) | Date |
|---|---|---|---|
DZ Bank | Buy | 22 | ~29 Sep 2026 |
Jefferies | Buy | 20 | 4 Aug 2026 |
Deutsche Bank | Hold | 17 | 5 Aug 2026 |
JPMorgan | Underweight | — | 4 Aug 2026 |
UBS | Neutral | 16–17 | mid-2026 |
Consensus (13 analysts) | — | 17.93 average | 26 Jul 2026 |
Per-Share Data and Dividends & Capital Returns
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
DPS (EUR) | 1.15 | 1.17 | 1.17 | 1.17 | 1.00 |
Total dividend (EUR Mn) (computed) | 536 | 545 | 545 | 545 | 466 |
Credit Ratings
| Agency | Long-term | Short-term | Outlook | Last action |
|---|---|---|---|---|
Moody's | Baa1 | — | Stable | Upgraded from Baa2 (positive), 27 Aug 2026 |
S&P Global | BBB+ | A-2 | Stable | BBB+ since 2012; full analysis 3 Jun 2026 |
Fitch | Not rated (n/d) | — | — | — |
Capital Instruments
| Instrument | Amount | Coupon | Maturity / call |
|---|---|---|---|
Bond 2016/2028 | €500m | 0.75% | 7 Sep 2028 |
Green bond 2022/2027 | — | — | 2027 |
Green bond 2025/2030 | — | — | 2030 |
Green hybrid 2021/2081 | €171.6m outstanding | 1.375% | First call window 2 Sep – 2 Dec 2026 |
Green hybrid 2025/2055 | — | — | 2055 (first call n/d) |
Committed undrawn bilateral credit lines | €800m (Moody's, 2024) | — | — |
Analyst Conclusions
Management guidance (FY2026)
Adjusted EBITDA €2.0–2.2bn (H1 delivered ~€1.105bn); sales ~€15bn; cash conversion ~40%; capex ~€750m; adjusted tax rate ~25%; Q3 2026 similar to Q2, Q4 normalising. Q3 results due 3 Nov 2026.
Consensus expectations
Deutsche Bank expected Q3 2026 consensus adj. EBITDA to move to ~€600m or more after the Q2 print. Full-year consensus figures beyond guidance are n/d. Implied H2 2026 adj. EBITDA at guidance midpoint: ~€1.0bn.
Bull case
-
Takeover floor: A reported €22.15 opening proposal, a rejection signalling higher price expectations, and a foundation shareholder legally able to sell create an asymmetric setup with a credible bid near or above the current price.
-
Earnings re-basing: Q2 2026 adj. EBITDA of €630m (16.2% margin) plus ~€400m Tailor Made savings and phase-2 cuts could sustain €2.0bn+ even after the Middle East windfall fades.
-
Mechanical margin uplift from disposals: Removing ~€4bn of low-margin Infrastructure/Oxeno sales would leave a ~€11.5bn specialty core with ~16–20% segment margins and higher ROCE.
Bear case
-
Windfall reversal: Management attributes much of H1 2026 strength to temporary supply disruption; Q4 normalisation could repeat the FY2025 pattern of strong H1/weak H2.
-
Deal break risk: If BASF walks away or RAG-Stiftung refuses, the share price (+~45% YTD) could retrace toward the pre-approach ~€17 level.
-
Structural European disadvantage: ROCE of 6.1%, recurring impairments and repeated site closures suggest the cost gap with Asian and US producers is structural, not cyclical.
Catalysts and monitorables (next 12 months)
-
BASF: firm offer, raised price, due diligence access, or withdrawal; BASF Q3 results (28 Oct 2026).
-
RAG-Stiftung decisions and board-of-trustees stance (NRW government, IG BCE).
-
CEO Kullmann's return timing vs permanent succession.
-
Q3 2026 results (3 Nov 2026) and FY2026 delivery vs €2.0–2.2bn; FY2026 dividend under the new payout policy (Mar 2027).
-
Oxeno sale launch/signing; SYNEQT ownership solution.
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Tailor Made phase-2 measures finalised by end-2026; works-council agreements.
-
Hybrid bond call decision (window closes 2 Dec 2026).
-
Middle East supply-chain normalisation; European energy-policy decisions.
Analyst verdict
Evonik enters Q4 2026 at the intersection of three forces: a cyclical earnings rebound, a multi-year self-help programme, and a potential change of control. Operationally, the company has demonstrated that its specialty core can still earn 19–20% segment margins when markets tighten, and its balance sheet has strengthened enough to earn a Moody's upgrade. Yet the five-year record is sobering: sales have shrunk at 1.5% a year, adjusted EBITDA at nearly 6% a year, and ROCE sits at roughly half management's 11% target. The 2026 upswing is, by management's own account, partly borrowed from a geopolitical supply shock that will fade.
The decisive variable is therefore not Q3 earnings but the BASF approach. At roughly 6.6x 2026 EBITDA, the reported €22.15 indication values Evonik below what a strategic buyer could justify if synergies from overlapping German sites, procurement and administration are real — which explains the board's rejection and BASF's insistence on due diligence. RAG-Stiftung, holding ~43.8% and openly acknowledging it may sell everything, is the gatekeeper; its fiduciary obligation to fund mining legacy costs favours a high, certain cash price, while its political trustees will weigh German jobs and site commitments.
On a standalone basis, Evonik merits a valuation between the pre-approach ~€17 (reflecting low returns and execution risk) and the low-€20s (reflecting successful Oxeno/SYNEQT exits and €2bn-plus sustainable EBITDA). With the share price near €19.5, the market already prices a meaningful probability of a transaction. We would characterise the risk/reward as balanced-to-positive for event-driven holders who believe a revised bid in the €23–25 range is plausible, and as neutral for fundamental investors, for whom the key proof points remain H2 2026 earnings resilience, completion of the C4 exit, and visible ROCE improvement toward double digits by 2027–2028.
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View Subscription PlansExecutive Leadership
Executive Leadership Team
| Name | Title | Tenure on Board | Prior roles | Education | Age |
|---|---|---|---|---|---|
Christian Kullmann | Chairman of the Executive Board (CEO); currently on medical leave | Board since 2014; Deputy Chairman 2016; CEO since May 2017; contract extended to 2030 (formal resolution 3 Jun 2026) | Deutsche Vermögensberatung (1994–96); Dresdner Bank (1996–2003, general secretariat, head of PR/public affairs); RAG AG communications and board office (2003–07); same roles at Evonik from 2007; Chief Strategy Officer 2014; also on Borussia Dortmund supervisory board | Studied history/economics (details n/d) | 57 |
Dr. Claus Rettig | Deputy Chairman (from 1 Sep 2026); interim leader of the company; Regional President Asia-Pacific | Board from 1 Sep 2026 (extended board since 2020; General Representative since 2022) | Board of Goldschmidt AG (2003); head of Resource Efficiency segment (from 2015); interim operational CFO duties (Sep 2025–Apr 2026) | Chemist (PhD) | 66 |
Michael Rauch | Chief Financial Officer | Since 1 May 2026 | 16 years at Henkel (strategy/finance in Germany, Sweden, China); CompuGroup Medical (CFO then CEO, ~5 years); Douglas (CFO, 2 years); Selecta AG (interim CEO) | MBA; master's in law (M&A), University of Münster | — |
Thomas Wessel | Chief Human Resources Officer & Labour Director; responsible for Infrastructure (SYNEQT) | Board member (since 2013); contract extended to 2028 (Sep 2025) | Long-time Evonik/Degussa HR executive | — | — |
Lauren Kjeldsen | Executive Board member responsible for Custom Solutions | n/d (joined board ~2024) | Previously led Nutrition & Care division | — | — |
Major Shareholders
| Holder | Stake (%) | Shares (m) | Source / date |
|---|---|---|---|
RAG-Stiftung | 43.8 | ~204 | RAG-Stiftung statement, Sep 2026 (Simply Wall St shows 46% / 214.4m as of Mar 2026; RAG website states ~47% — figures differ by date/methodology) |
Mondrian Investment Partners | ~5.0 | 23.3 | Simply Wall St, Mar 2026 (aggregator) |
BlackRock | ~3.9 | 18.2 | Same |
The Vanguard Group | ~2.4 | 11.4 | Same |
Amundi Asset Management | ~1.3 | 6.0 | Same |
Dimensional Fund Advisors | ~1.2 | 5.5 | Same |
Norges Bank Investment Management | ~1.1 | 5.2 | Same |
Magallanes Value Investors | ~1.0 | 4.8 | Same |
Union Asset Management | ~0.9 | 4.0 | Same |
Hartford Funds Management | ~0.7 | 3.2 | Same |
Competitive Landscape
Competitors by Segment
| Evonik business | Principal competitors |
|---|---|
Coating & specialty additives | BYK (Altana), BASF, Dow, Elementis, Arkema (Coatex), Clariant |
Care Solutions / cosmetic ingredients | BASF Care Chemicals, Croda, dsm-firmenich, Clariant, Ashland, Symrise |
Health Care (excipients, lipids, CDMO) | Croda (Avanti lipids), Merck KGaA, Lonza, Corden Pharma, Ashland, Colorcon |
Silica | Cabot (fumed), Wacker (fumed), Solvay/Syensqo (precipitated), PPG, OCI, Chinese producers |
Hydrogen peroxide | Solvay, Nouryon, Kemira, Arkema, Mitsubishi Gas Chemical |
High-performance polymers (PA12, PEEK) | Arkema (PA11/PA12), EMS-Chemie (PA12), UBE, Victrex (PEEK), Syensqo (PEEK) |
Crosslinkers / isocyanates | Covestro (now ADNOC-owned), BASF, Vencorex |
Animal Nutrition (methionine) | Adisseo (Bluestar), Novus (Mitsui), CJ CheilJedang, Sumitomo Chemical, new Chinese capacity |
C4 chain (Oxeno) | BASF, LyondellBasell, TPC Group, Sabic |
Diversified specialty peers (group level) | BASF, Arkema, Clariant, Lanxess, Wacker, Croda, Syensqo |
Peer Comparison FY2025
| Metric | Evonik | BASF |
|---|---|---|
Sales FY2025 | €14.1bn | ~€60bn (BASF release) |
Sales growth FY2025 | -7% | — |
Adj. EBITDA margin FY2025 | 13.3% | — |
R&D % of sales FY2025 | 3.0% | — |
Employees | 31,053 | ~95,000 |
Credit rating | Baa1/BBB+ | — |
