Evonik has announced a new dividend policy today, targeting an annual shareholder distribution of 40 to 60 percent of adjusted net income starting in 2026, aiming to boost financial flexibility. 

 

As a bridge to the new policy, the company plans a €1.00 per share dividend for 2025, down from €1.17 last year, representing a current yield of about 7 percent.

 

“We need a good balance between appropriate shareholder profit sharing and the ability to invest in the best future projects at the proper time and decrease leverage further,” said Christian Kullmann, Chairman of the Executive Board. “Our new dividend policy improves that balance.”

 

Evonik also confirmed it met its earnings guidance for 2025, reporting preliminary, unaudited adjusted EBITDA of €1.874 billion, in line with its forecast of around €1.9 billion. Sales totaled €14.1 billion, roughly 7 percent below 2024, while the cash conversion rate hit 37 percent, at the upper end of the target range, supported by €695 million in free cash flow.

 

“The high level of cash generation is remarkable and sets Evonik apart,” said Claus Rettig, temporarily managing the finance department. “We are comfortably covering the planned shareholder distribution and are in an excellent competitive position.”

 

Net income for 2025 reached €265 million, up from €222 million in 2024. The company’s Evonik Tailor Made efficiency program helped streamline operations and accelerate decision-making, with up to 2,000 jobs expected to be eliminated in 2026 as part of ongoing cost-cutting measures. Additionally, SYNEQT, the operating company for Evonik’s German chemical parks in Marl and Wesseling, became independent at the start of the year.

 

Looking ahead, Evonik warned of continued economic challenges in 2026, forecasting adjusted EBITDA between €1.7 and €2.0 billion. The company remains focused on its medium-term goal of a return on capital employed (ROCE) of 11 percent.