Evonik targets €1bn earnings boost by 2027 under new strategy

Essen, Germany – Evonik aims to raise its adjusted earnings (EBITDA) by €1 billion by 2027 under a new strategic setup, the company said on 24 May.

The additional earnings are to come equally from “growth” and “optimisation” initiatives, said the German chemicals major 22 May.

The group also targets a return on capital employed (ROCE) of around 11% by 2027.

In 2024, Evonik reported adjusted earnings of €2.0 billion, up 25% compared to 2023, while ROCE rose to 7.1% from 3.4% the year before.

“We are working consistently on two sides of the same coin – on our growth opportunities and on our costs,” explained CEO Christian Kullmann.

Evonik said about €500 million of the increase will come from higher capacity utilisation at new plants and sales of new products in its three innovation growth areas.

Here, the group highlighted market niches such as biodegradable biosurfactants, biodiesel catalysts and membranes.

The remaining €500 million is to come from cost-cutting.

The programmes include “Evonik tailor made” and other initiatives within animal nutrition, silica and high performance polymers, said Evonik without giving further details. 

“We used the economic crisis of 2023 as an opportunity to refine our strategy for the coming years and to set clear goals,” said Kullmann.

Through 2027, CFO Maike Schuh said, Evonik will "focus on implementing our growth, cost, and portfolio measures, improving our financial metrics and further strengthening our balance sheet by reducing debt”.

“Until then, we are ruling out acquisitions – but this will create opportunities afterwards,” Schuh added.

Evonik also reaffirmed its sustainability goals for 2030. It aims to raise the share of revenue from “next generation solutions” to 50% (from 45% in 2024) and cut scope 1 and 2 emissions by 25%.