Latest news with #EvonikIndustries
Yahoo
19-05-2025
- Business
- Yahoo
Why Evonik Industries' (ETR:EVK) Earnings Are Better Than They Seem
Evonik Industries AG's (ETR:EVK) recent earnings report didn't offer any surprises, with the shares unchanged over the last week. We did some digging, and we think that investors are missing some encouraging factors in the underlying numbers. We've discovered 2 warning signs about Evonik Industries. View them for free. For anyone who wants to understand Evonik Industries' profit beyond the statutory numbers, it's important to note that during the last twelve months statutory profit was reduced by €242m due to unusual items. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. We looked at thousands of listed companies and found that unusual items are very often one-off in nature. And, after all, that's exactly what the accounting terminology implies. Assuming those unusual expenses don't come up again, we'd therefore expect Evonik Industries to produce a higher profit next year, all else being equal. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Unusual items (expenses) detracted from Evonik Industries' earnings over the last year, but we might see an improvement next year. Based on this observation, we consider it likely that Evonik Industries' statutory profit actually understates its earnings potential! And one can definitely find a positive in the fact that it made a profit this year, despite losing money last year. The goal of this article has been to assess how well we can rely on the statutory earnings to reflect the company's potential, but there is plenty more to consider. If you want to do dive deeper into Evonik Industries, you'd also look into what risks it is currently facing. While conducting our analysis, we found that Evonik Industries has 2 warning signs and it would be unwise to ignore these. Today we've zoomed in on a single data point to better understand the nature of Evonik Industries' profit. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
Evonik Industries First Quarter 2025 Earnings: EPS Beats Expectations, Revenues Lag
Revenue: €3.78b (flat on 1Q 2024). Net income: €233.0m (up 49% from 1Q 2024). Profit margin: 6.2% (up from 4.1% in 1Q 2024). EPS: €0.50 (up from €0.33 in 1Q 2024). This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue missed analyst estimates by 2.2%. Earnings per share (EPS) exceeded analyst estimates by 48%. Looking ahead, revenue is forecast to grow 2.8% p.a. on average during the next 3 years, compared to a 3.6% growth forecast for the Chemicals industry in Germany. Performance of the German Chemicals industry. The company's shares are down 1.5% from a week ago. We should say that we've discovered 2 warning signs for Evonik Industries that you should be aware of before investing here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Business
- Yahoo
Evonik Industries AG (EVKIF) Q1 2025 Earnings Call Highlights: Record Sales and Robust Cash ...
EBITDA Growth: Increased by more than 50% in Q1 compared to the prior year. Free Cash Flow: Outgrew the prior year level by more than 50% in Q1. Sales Record: Achieved an all-time sales record in Q1. Net Savings: High double-digit million additional net savings expected. Energy Costs: Expected to be lower due to hedges and decreasing spot energy prices. Animal Nutrition Business: Continues strong performance with tight market conditions and strong demand. Global GDP Growth Expectation: Revised down to 2.2% for 2025 from 2.5%. Warning! GuruFocus has detected 9 Warning Sign with EVKIF. Release Date: May 12, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Evonik Industries AG (EVKIF) reported a more than 50% increase in free cash flow in Q1 compared to the previous year. The company confirmed its full-year guidance, supported by strong Q1 performance and a solid start to Q2. Evonik's resilient businesses in specialty additives and strong growth in nutrition and care differentiate its portfolio from peers. Cost programs are in full execution, supporting solid operating performance. High local production presence shields the company from protectionism and offers opportunities behind tariff borders. Global GDP growth expectations for 2025 have been lowered to 2.2%, down from 2.5% two months ago. Foreign exchange is turning from a tailwind into a headwind, impacting financial performance. There is increased uncertainty due to potential trade and tariff tensions, which could affect customer and end consumer confidence. The C4 business is experiencing macroeconomic challenges with decreasing naphtha and butadiene prices. Visibility remains low, with no significant macro slowdown yet, but potential risks such as a global recession are being monitored. Q: How does Evonik Industries AG plan to benefit from the upcoming infrastructure spending initiative in Germany, and what impact might Chinese exports have on the European market due to tariffs? A: Christian Kullmann, Chairman of the Executive Board, stated that the new German government is focused on making Germany and Europe attractive for the chemical industry by 2045. Evonik expects to benefit from lower energy prices and infrastructure programs, particularly in construction-related businesses. Regarding Chinese exports, Maike Schuh, CFO, noted that while there might be increased competition in crosslinkers, the impact on other products like methionine, silica, and hydrogen peroxide is expected to be limited due to Evonik's local production capabilities. Q: Why did Evonik increase the discount rate for pension obligations despite declining interest rates in Europe, and is there evidence of trade uncertainty affecting the order book? A: Maike Schuh explained that the increase in the pension discount rate aligns with industry peers and is based on calculations by accountants. Christian Kullmann addressed trade uncertainty, noting that while customers are ordering in shorter terms and smaller sizes, overall volumes remain stable. There is no significant evidence of pre-buying or order stalling due to trade uncertainties. Q: Is there any seasonal recovery expected in Q2, and what is the outlook for methionine prices? A: Maike Schuh mentioned that Evonik does not expect strong seasonality in Q2, with operations remaining stable. Christian Kullmann highlighted that methionine prices are expected to remain high due to tight market conditions and planned maintenance shutdowns by competitors, leading to a global price increase of 5% to 8%. Q: How does Evonik view the current macroeconomic conditions and their impact on the business? A: Maike Schuh noted that while macroeconomic risks have increased, Evonik's guidance remains intact due to strong performance in Q1 and ongoing cost-saving measures. The company is prepared for potential challenges, such as trade tensions and a global recession, but currently sees no significant downturn in demand. Q: What are the expectations for Evonik's performance in the second half of the year? A: Maike Schuh indicated that while visibility is limited, Evonik expects stable performance with continued cost savings and operational improvements. The company anticipates a strong start to the second half, particularly in the methionine business, supported by high utilization rates and strong demand. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26-03-2025
- Business
- Yahoo
Institutional investors in Evonik Industries AG (ETR:EVK) see €578m decrease in market cap last week, although long-term gains have benefitted them.
Given the large stake in the stock by institutions, Evonik Industries' stock price might be vulnerable to their trading decisions A total of 2 investors have a majority stake in the company with 52% ownership Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Every investor in Evonik Industries AG (ETR:EVK) should be aware of the most powerful shareholder groups. With 75% stake, institutions possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company. Institutional investors endured the highest losses after the company's market cap fell by €578m last week. Still, the 23% one-year gains may have helped mitigate their overall losses. They should, however, be mindful of further losses in the future. Let's delve deeper into each type of owner of Evonik Industries, beginning with the chart below. Check out our latest analysis for Evonik Industries Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. Evonik Industries already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Evonik Industries' earnings history below. Of course, the future is what really matters. Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. We note that hedge funds don't have a meaningful investment in Evonik Industries. The company's largest shareholder is RAG Foundation, Endowment Arm, with ownership of 47%. Mondrian Investment Partners Limited is the second largest shareholder owning 5.0% of common stock, and BlackRock, Inc. holds about 3.7% of the company stock. To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company. Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too. The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. We note our data does not show any board members holding shares, personally. Given we are not picking up on insider ownership, we may have missing data. Therefore, it would be interesting to assess the CEO compensation and tenure, here. The general public-- including retail investors -- own 25% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies. It's always worth thinking about the different groups who own shares in a company. But to understand Evonik Industries better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Evonik Industries you should be aware of. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Reuters
05-03-2025
- Business
- Reuters
Evonik sees broadly stable 2025 core earnings, with a rise in 1st quarter
March 5 (Reuters) - German chemicals group Evonik Industries ( opens new tab on Wednesday forecast 2025 core earnings broadly in line with last year's figure and analysts' expectations, and said the first quarter result would rise from a year earlier. Strict cost discipline and good volume development at its speciality additives business have so far helped Evonik to overcome the difficult market environment. "We advanced during the economic and political headwinds of last year," CEO Christian Kullmann said in a statement. The Essen-based company sees adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of between 2.0 billion and 2.3 billion euros ($2.1 billion and 2.4 billion) this year, compared with 2.07 billion euros in 2024. Analysts' median forecast for 2024 adjusted EBITDA was 2.08 billion euros, which they were expecting to rise to 2.15 billion in 2025, a poll compiled by Vara Research, opens new tab showed. For the first quarter of 2025, the group expects adjusted EBITDA above the 522 million euros it had reported last year. Aiming to slim down its business, Evonik in December announced the biggest restructuring programme in its history, which might reduce its workforce by more than a fifth. "We promised to carry out the reorganization in a socially responsible manner and we are keeping our word," the company said, adding the reorganization and job cuts were advancing according to the plan. The German sites in Marl and Wesseling will be carved out later this year, which should help Evonik focus on its chemical businesses, it said. As part of the restructuring, the speciality chemicals maker also implemented the split of its former Technology & Infrastructure unit into separate functions on January 1, it added.
