Germany’s specialty chemicals giant Evonik reported a mixed second quarter, with net profits rebounding to €120 million after last year’s losses, but underlying challenges persist. Adjusted EBITDA dropped 12% to €509 million, while revenue fell 11% to €3.5 billion, driven by weak demand, currency effects, and unplanned maintenance halts. The free cash flow plummeted to -€211 million, a stark reversal from €217 million a year earlier, prompting a €100 million investment cut for 2025. Management cited global economic uncertainty, U.S. tariffs, and China’s slowdown as key pressures.
Dividend and Outlook in Doubt
Despite maintaining its full-year EBITDA forecast of €2.0–2.3 billion, Evonik now expects results at the lower end. Analysts warn 2025 could worsen, with EBITDA potentially dipping below €2 billion. The stock, already under pressure, faces further downside as margins shrink and dividend sustainability comes into question. BlackRock’s marginal stake increase offers little reassurance amid broader sector struggles, with peers like BASF also downgrading forecasts.
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