Evonik Industries remains a fundamentally strong specialty chemicals company, now trading at attractive valuations despite recent earnings downgrades and market underperformance. EVKIY faces near-term headwinds, including weaker EBITDA guidance, persistent demand softness, and potential dividend risk, but maintains a BBB+ rating and manageable leverage. At current prices below €15/share, the risk/reward profile is compelling, with a conservative price target cut to €20/share and an ADR target of $11.50/share.
Evonik remains a 'Buy' for me, offering a solid 7%+ yield and BBB+ rating despite recent underperformance and macro headwinds. Short-term volatility and earnings declines are expected, but I see these as transitory, with long-term fundamentals and EU reshoring trends supporting recovery. Valuation is compelling: at current levels, EVKIY offers potential 15%+ annualized upside, with a fair value target of €22/share and significant peer appeal.
Evonik Industries AG (OTCPK:EVKIF) Q2 2025 Earnings Conference Call August 1, 2025 5:00 AM ET Executives Christian Kullmann – CEO & Chairman of the Executive Board Maike Schuh – CFO & Member of Executive Board Tim Lange – Head of Investor Relations Analysts Anil Shenoy - Barclays Bank PLC, Research Division Chetan Udeshi - JPMorgan Chase & Co, Research Division David Symonds - BNP Paribas Exane, Research Division Georgina Fraser - Goldman Sachs Group, Inc., Research Division Martin Roediger - Kepler Cheuvreux, Research Division Matthew John Peter Yates - BofA Securities, Research Division Thomas P. Wrigglesworth - Morgan Stanley, Research Division Operator Ladies and gentlemen, welcome to the Evonik Industries AG Q2 2025 Earnings Conference Call.
| Specialty Retail Industry | Consumer Discretionary Sector | Mr. Christian Kullmann CEO | OTC PINK Exchange | DE000EVNK013 ISIN |
| DE Country | 31,585 Employees | 30 May 2025 Last Dividend | - Last Split | - IPO Date |
Evonik Industries AG is a global leader in the production of specialty chemicals, serving a diverse range of markets including Asia-Pacific, Europe, the Middle East, Africa, Central and South America, and North America. The company structurally organizes its vast product offerings into five key segments: Specialty Additives, Nutrition & Care, Smart Materials, Performance Materials, and Technology & Infrastructure. Each segment caters to specific industry needs, ranging from construction and automotive to nutrition, healthcare, and beyond. Evonik's innovative approach is underpinned by a rich history that dates back to 1873, with its headquarters in Essen, Germany. As a subsidiary of RAG-Stiftung, Evonik stands out for its commitment to sustainability, technology-driven solutions, and integrated services that support and advance chemical production worldwide.
This segment provides crucial components for a variety of applications, including polyurethane coatings, paints, and adhesives. Key products include matting agents for paints and coatings, fumed silicas for paints and printing inks, isophorone and epoxy curing agents for coatings and composites, and additives for improving oil lubricants in construction machinery and the automotive sector.
Evonik caters to the animal nutrition industry with essential amino acids such as D-/L-methionine and lysine. In the healthcare sector, it produces pharmaceutical active ingredients, biocompatible and bioresorbable materials for orthopedic applications, and also offers system solutions for the cosmetics and detergent industries.
Under this segment, Evonik delivers inorganic materials such as fumed and precipitated silicas and silanes, peroxides for the paper and textile industries, specialty catalysts, polymers like polymide 12, and various alkoxide-based products. These smart materials are designed for high-efficiency and sustainability in industrial applications.
This segment's offerings include C4 derivatives like butadiene and MTBE, superabsorbents for hygiene products, and other key chemicals for the automotive industry. The focus here is on enhancing performance and efficiency in consumer goods and industrial processes.
Providing vital support services, Evonik helps optimize energy management, maintenance, process safety, and overall operational excellence in chemical production. This includes digital solutions, integrated plant support, logistics, and strategic site development services tailored to the intricate needs of the chemical industry.