Evonik Q1 Profit Jumps 7 Percent Free Cash Flow Surges 53 Percent Amid Structural Overhaul

Evonik has outperformed market expectations with its first-quarter 2025 results, showing a robust recovery across key financial indicators. Adjusted EBITDA rose to €560 million, a 7% increase over the strong results from the same period last year. Even more notably, free cash flow soared 53% year-on-year to €195 million, well above the €127 million achieved in Q1 2024.

While sales remained stable at €3.78 billion, a 2% increase in volume offset a 2% drop in selling prices. Profitability improved, with adjusted EBITDA margin rising to 14.8%, up one percentage point. Net income reached €233 million, significantly higher than the €156 million recorded a year ago.

Animal Nutrition led the way, with pricing trends outperforming expectations, contributing positively to revenue and forecasted to remain strong into Q2. The company maintained its full-year 2025 EBITDA outlook of €2 to €2.3 billion and anticipates a continued cash conversion rate of around 40%, with capital expenditures holding steady at €850 million. Return on capital employed (ROCE) is also expected to increase.

Amid global economic volatility, Evonik has taken proactive steps by streamlining its organizational structure. The traditional business unit layer was eliminated early in Q2, placing direct operational oversight under the Executive Board. The company’s new strategy includes aggressive cost control through its “Evonik Tailor-Made” program, targeting tens of millions of euros in savings by 2025.

Performance by segments reveals mixed dynamics: 

• The Specialty Additives division grew 1% in sales to €923 million, helped by strong coatings-related product performance and rising demand for crosslinkers and oil additives. Adjusted EBITDA rose slightly to €201 million, maintaining a high margin of 21.9%.

• Nutrition and Consumer Care surged 12% to €1.007 billion, driven by higher volumes and compensation payments in the amino acids segment. Pharma APIs also posted gains, while personal care lagged. Adjusted EBITDA jumped 35% to €197 million, lifting the margin to 19.6% from 16.2%.

• Smart Materials held steady at €1.098 billion, with marginal changes in volume and pricing. Lower precious metal prices slightly affected revenues, while polymer sales improved. Adjusted EBITDA fell 7% to €149 million, pushing the margin down to 13.6%.

Evonik’s strong first quarter sets a solid tone for 2025, especially as it pivots to a leaner, more agile operating model amid global headwinds.