Evonik Introduces New Dividend Policy and Confirms 2025 Guidance
At a meeting held today, the Executive Board of Evonik discussed the company’s dividend policy in light of the preliminary results for the 2025 financial year and the outlook for 2026. As previously communicated in an ad hoc announcement, Evonik plans to implement a new annual shareholder distribution framework, targeting between 40 and 60 percent of adjusted net income beginning with the 2026 fiscal year. The revised policy is designed to enhance financial flexibility and support the company’s long-term strategic goals.
For the 2025 fiscal year, Evonik intends to pay a transitionary dividend of €1.00 per share, reflecting a current dividend yield of approximately 7 percent. This marks a slight reduction from the previous year, when the annual dividend stood at €1.17 per share.
Balancing Shareholder Returns and Strategic Investment
Christian Kullmann, Chairman of Evonik’s Executive Board, emphasized the rationale behind the new dividend policy:
“We need a good balance between appropriate shareholder profit sharing and the ability to invest in the best future projects at the proper time while also reducing leverage,” he said. “Our new dividend policy improves that balance.”
The policy aims to provide shareholders with a predictable and sustainable return while retaining flexibility to invest in strategic initiatives and optimize the company’s capital structure.
Strong Performance in 2025
Evonik has successfully met its earnings guidance for 2025, underscoring the company’s operational strength amid challenging market conditions. Preliminary, unaudited results indicate that adjusted EBITDA reached €1.874 billion, aligning closely with the company’s target of around €1.9 billion.
Despite a decline in sales, Evonik demonstrated solid cash flow performance. Sales totaled €14.1 billion in 2025, representing a 7 percent decrease compared with 2024. The cash conversion rate reached 37 percent, at the upper end of the company’s target range of 30 to 40 percent, supported by a strong free cash flow of €695 million.
Claus Rettig, who is temporarily overseeing the finance department, highlighted the significance of these results:
“The high level of cash generation is remarkable and sets Evonik apart,” he said. “We are comfortably covering the planned shareholder distribution and are in an excellent competitive position.”
Net Income and Transition Measures
Evonik reported a net income of €265 million for 2025, up from €222 million in the previous year. The company is implementing the dividend as a transition measure toward the new policy framework, ensuring that shareholders continue to benefit from a meaningful return while allowing the company to maintain financial flexibility.
Leadership and Corporate Governance
The Chief Financial Officer (CFO) position, which has been vacant since September 2025, is expected to be filled at the 2026 Annual General Meeting. The company’s leadership continues to focus on strategic execution, financial discipline, and efficient capital allocation in preparation for future growth.
Efficiency Program and Operational Initiatives
In 2025, Evonik’s Evonik Tailor Made efficiency program contributed significantly to streamlining operations. The program focused on reducing hierarchical layers, accelerating decision-making processes, and enhancing overall operational efficiency.
Looking ahead, the program is expected to generate further cost reductions in 2026, including the planned elimination of up to 2,000 positions. Additionally, SYNEQT, Evonik’s operating company for the chemical parks in Marl and Wesseling, Germany, became an independent entity at the beginning of 2026, further supporting operational efficiency and localized decision-making.
Outlook for 2026
Evonik anticipates that the economic environment in 2026 will remain challenging, reflecting continued volatility in global markets. Despite these conditions, the company projects an adjusted EBITDA range of €1.7 to €2.0 billion for the current fiscal year.
In the medium term, Evonik remains committed to achieving its target return on capital employed (ROCE) of 11 percent, reflecting a disciplined focus on profitable growth and capital efficiency.
Upcoming Financial Reporting
Evonik will release its full-year 2025 results on March 4, 2026, as previously scheduled. The comprehensive results are expected to provide further insights into the company’s operational performance, financial position, and the implementation of the new dividend policy.
Source Link: https://www.evonik.com/
