Evonik Targets €1 Billion EBITDA Boost and 11 Percent ROCE by 2027 Amid Strategic Overhaul

Evonik is moving boldly into its next strategic phase with a plan to elevate its return on capital employed (ROCE) to around 11% by 2027 and boost EBITDA by €1 billion, split evenly between growth initiatives and cost optimization.

Announced recently, the company’s refreshed strategy is built on four core pillars: differentiated positioning via two new divisions, sustainable innovation, global balance, and a performance-driven corporate culture rooted in mutual respect.

CEO Christian Kullmann emphasized that Evonik is leveraging the challenges of the 2023 downturn as a turning point. “We’re acting on both growth and efficiency. Our businesses are strong, and we see further opportunities, particularly in European stimulus programs,” he stated.

Evonik anticipates that €500 million in EBITDA growth will be driven by higher capacity utilization at new sites and product innovations in key areas such as biodegradable biosurfactants, biodiesel catalysts, and advanced membrane technologies. These offerings cater to resilient, high-potential niche markets, reinforcing Evonik’s strategic focus.

On the efficiency front, the other €500 million is expected from cost-cutting programs already underway. These include Evonik Tailor Made, as well as targeted streamlining efforts in businesses like animal nutrition, silica, and high-performance polymers. The “ePro” procurement initiative will also play a key role.

Chief Financial Officer Maike Schuh confirmed that most of the optimization efforts are fully under internal control. She underlined that strengthening the balance sheet is a priority, with stock buybacks considered an option once current goals are achieved.

No acquisitions are planned until 2027, allowing the company to focus entirely on execution and performance improvement. Cash conversion is expected to remain above 40%, maintaining healthy financial flexibility.

Looking ahead, Evonik is committed to sustainability goals that are directly tied to executive compensation. By 2030, it aims to increase revenue from Next Generation Solutions—products with significant environmental benefits—to 50% of sales, up from 45% in 2024, while cutting Scope 1 and 2 emissions by 25%.

Kullmann added, “Evonik already leads in sustainable innovation, but we aim higher. Our mission is to become a super enabler for our customers—empowering them to produce smarter, greener solutions.”