Evonik (EVKn.DE): 2Q26: Broad-based delivery underpins earnings momentum

Research evidence excerpt

Evonik (EVKn.DE): 2Q26: Broad-based delivery underpins earnings momentum

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04 Aug 2026 02:05:40 ET │ 11 pages

Evonik (EVKn.DE)

2Q26: Broad-based delivery underpins earnings momentum

CITI'S TAKE

Buy 2Q EBITDA of €630 landed near the mid-point of the pre-released €600-

650m range and slightly ahead of the updated Vara consensus. As Price (03 Aug 26 17:30) €17.59

previously indicated, the beat was broad-based rather than solely Target price €20.00

methionine-driven, with both operating segments outperforming Expected share price return 13.7%

expectations. Meanwhile, the Other/Infrastructure line was weaker due to Expected dividend yield 5.0%

higher bonus provisions, implying a more favourable mix. Free cash flow Expected total return 18.7%

increased materially YoY and remains on track to achieve management’s

Market Cap €8,197M ~40% full-year conversion target. The FY outlook had already been raised

US$9,449M to €2.0-2.2bn EBITDA, with consensus now sitting at the midpoint of the

range. With limited incremental news in today’s release, attention is likely

to shift to Q3, where Vara expects EBITDA of €560m. Based on

commentary from peers on demand and the continued high methionine Sebastian Satz, CFAAC

prices - the latter means that Animal Nutrition should be up QoQ - +44-203-569-3662

consensus expectations for the quarter look achievable and underpinning sebastian.satz@citi.com

full-year expectations.

Implications — Today's release suggests the positive earnings momentum is

unlikely to inflect negatively in the near term. The presentation also highlights

progress under the extended Tailor Made cost-saving program, with headcount

already reduced by c.2,000 FTEs and a further c.3,000 reductions targeted by 2029,

supporting the medium-term earnings trajectory.