Evonik outperformed the prior-year quarter in the first three months of 2025 despite the difficult environment. At €560 million, adjusted Ebitda was seven percent higher than the good prior-year figure. The improvement was driven by higher sales volumes, better-than-expected prices in Animal Nutrition, and continued cost discipline. “We had a good start to the year,” says Chief Executive Officer Christian Kullmann. ”However, the combination of a looming global trade war and armed conflicts makes planning for the future more uncertain than ever. There is a risk of a further economic slowdown, particularly in the second half of the year.”
In the first quarter, Evonik increased sales by two percent compared with the same quarter of the previous year. Prices, however, declined by two percent. Sales remained virtually stable at €3.78 billion. Net income amounted to €233 million, compared with €156 million in the same quarter of the previous year. “Our efficiency efforts are taking hold. And that is urgently needed in view of resurgent economic concerns,” says Chief Financial Officer Maike Schuh. ”The less predictable the environment, the clearer our path must be: Deliver on the improvements we promise.”
Development of the chemical divisions of Evonik
Specialty Additives: Sales in the Specialty Additives business unit rose by one percent to €923 million in the first quarter. Slightly higher volumes and positive currency effects contributed to this. Selling prices were slightly below the prior-year level. Products for the coatings and coatings industry recorded a pleasing business performance with significantly higher sales volumes. Sales were noticeably higher than in the previous year. In the crosslinkers business, sales rose on higher volume demand. Oil additives increased their sales on the back of higher volumes worldwide. Additives for polyurethane foams and durable consumer goods posted lower sales than in the previous year on lower volumes. Adjusted Ebitda grew by one percent to €201 million.
Nutrition & Care: Sales in this segment rose by twelve percent to €1,007 million, mainly due to higher volumes. In particular, the essential amino acids business in Animal Nutrition recorded an increase in sales due to significantly higher sales volumes and a compensation payment in connection with the termination of a supply contract by a customer. In the Health & Care segment, sales rose mainly due to stronger business with active pharmaceutical ingredients (Drug Substances), while Care products were below the prior-year level due to volume factors. Adjusted Ebitda improved by 35 percent to €197 million. This was mainly due to the significant increase in volumes, cost savings from the optimization of the business model in Animal Nutrition, and a compensation payment from the termination of a supply contract by a customer.
Smart Materials: At €1,098 million, sales in this division were roughly on a par with the prior-year quarter, with volumes and selling prices virtually unchanged. Inorganic products recorded slightly higher demand overall, with stable selling prices. Sales declined slightly, also due to lower precious metal prices. In Polymers, sales rose on higher volumes and slightly improved prices. Adjusted Ebitda was €149 million, down seven percent from the prior-year quarter, which included license income.
Evonik confirms forecast for 2025
The economic environment has become more difficult in the first months of the year. The intensification of protectionist trade policies in the US is an additional source of uncertainty. Nevertheless, following a good start to the year, Evonik is confirming its earnings forecast for 2025 and continues to expect adjusted EBITDA of between €2 billion and €2.3 billion.
The better-than-expected price development in the Animal Nutrition business unit is supporting earnings. The effect is likely to continue at least into the second quarter. Evonik continues to expect a cash conversion rate of around 40 percent in 2025. Capital expenditures are expected to remain roughly constant at around €850 million. The return on capital employed will improve further in the current year.
New corporate structure and efficiency programs contribute positively to financial results
The company is continuously working to become less dependent on external influences. This includes cost discipline and a stronger focus on structural improvements, the “Evonik Tailor Made” program, and various optimization projects in the operating business. Tailor Made is making good progress and, together with the other initiatives, will contribute a high double-digit million € amount to earnings in the current year. A new corporate structure with a lean management model and a reduced number of units has been introduced. At the beginning of the second quarter, the divisional management hierarchy was abolished. As a result, the chemical business, which is bundled into two segments, is now managed directly by members of the Executive Board.
