The Investor
05 Nov 2025, 13:35
Evonik reports weak third quarter amid sluggish demand
Evonik Industries AG announced a 22% year-on-year decline in third-quarter adjusted EBITDA to €448 million, in line with prior guidance. Revenue dropped 12% to €3.39 billion, reflecting lower sales volumes, the sale of the superabsorbents business in 2024, and unfavorable currency movements. The adjusted EBITDA margin fell to 13.2% from 15.1% last year.
CEO Christian Kullmann said the expected September recovery “failed to materialize,” though he emphasized that long-term strategic goals remain intact. CFO Claus Rettig noted that despite current headwinds, adjusted full-year targets remain achievable, with EBITDA guidance reaffirmed at around €1.9 billion for 2025. Free cash flow for the quarter was €300 million, supported by disciplined cost and investment control.
Evonik’s restructuring program, **Tailor Made**, continues to progress, with 90% of business lines set to be reorganized by year-end. The company highlighted efficiency gains from streamlined management and reduced personnel costs.
By segment, **Advanced Technologies** revenue fell 6% to €1.45 billion and EBITDA dropped 32% to €202 million as planned maintenance and weak demand weighed on results. **Custom Solutions** revenue declined 9% to €1.34 billion, while EBITDA decreased 25% to €215 million due to lower volumes, particularly in additives for polyurethane foams and coatings.
For full-year 2025, Evonik expects continued weak demand but anticipates free cash flow remaining “attractive.” Capital expenditure will total about €750 million, and return on capital employed is projected to come in slightly below the 2024 level of 7.1%.
Evonik Industries AG announced a 22% year-on-year decline in third-quarter adjusted EBITDA to €448 million, in line with prior guidance. Revenue dropped 12% to €3.39 billion, reflecting lower sales volumes, the sale of the superabsorbents business in 2024, and unfavorable currency movements. The adjusted EBITDA margin fell to 13.2% from 15.1% last year.
CEO Christian Kullmann said the expected September recovery “failed to materialize,” though he emphasized that long-term strategic goals remain intact. CFO Claus Rettig noted that despite current headwinds, adjusted full-year targets remain achievable, with EBITDA guidance reaffirmed at around €1.9 billion for 2025. Free cash flow for the quarter was €300 million, supported by disciplined cost and investment control.
Evonik’s restructuring program, **Tailor Made**, continues to progress, with 90% of business lines set to be reorganized by year-end. The company highlighted efficiency gains from streamlined management and reduced personnel costs.
By segment, **Advanced Technologies** revenue fell 6% to €1.45 billion and EBITDA dropped 32% to €202 million as planned maintenance and weak demand weighed on results. **Custom Solutions** revenue declined 9% to €1.34 billion, while EBITDA decreased 25% to €215 million due to lower volumes, particularly in additives for polyurethane foams and coatings.
For full-year 2025, Evonik expects continued weak demand but anticipates free cash flow remaining “attractive.” Capital expenditure will total about €750 million, and return on capital employed is projected to come in slightly below the 2024 level of 7.1%.