By Matthias Inverardi and Anastasiia Kozlova
(Reuters) -German chemicals group Evonik Industries reported first-quarter core profit above market expectations and confirmed its outlook for 2025 on Monday, aided by its shift towards high-margin growth businesses and cost discipline.
The company posted a 7% rise in its adjusted operating earnings before depreciation and amortisation (EBITDA) to 560 million euros ($628.8 million), beating analysts’ median forecast of 543 million euros in a Vara Research poll.
Strict cost discipline and good volume development at its Nutrition & Care business have so far helped Evonik overcome the difficult market environment.
The Essen-based group stuck to its yearly outlook, but said the escalating protectionist trade policies of the U.S. were adding more uncertainty.
“There is a risk of a further economic slowdown, particularly in the second half of the year,” CEO Christian Kullmann said in a statement.
Evonik did not provide any details on its quarterly core profit outlook, unlike in several previous quarters.
Years of subdued demand coupled with an overall difficult economy and more recently the U.S. tariff threat have significantly dampened economic optimism among chemical makers. German chemical industry lobby VCI cut its annual outlook in March, saying it saw no recovery in the sector before 2026.
Covestro cut its 2025 profit forecast last week, as higher tariffs threaten to erode its earnings. Companies like BASF and Lanxess have also warned of the high level of uncertainty caused by the import duties imposed by U.S. President Donald Trump.
Still, some investors are positively tuned ahead of future uncertainties, with Evonik’s shares up nearly 20% so far this year, outperforming its peers.
“Our efficiency efforts are taking hold. And that is urgently needed in view of resurgent economic concerns,” Chief Financial Officer Maike Schuh said in a statement.
Evonik will provide more information on its strategic direction and targets during its Capital Markets Day on May 22.
Aiming to slim down its business, Evonik in December announced the biggest restructuring programme in its history, which it said might reduce its workforce by more than a fifth.
($1 = 0.8906 euros)
(Reporting by Matthias Inverardi and Anastasiia Kozlova; editing by Milla Nissi-Prussak)
