Frankfurt: German specialty chemicals manufacturer Evonik Industries AG reported a 22% decline in its third-quarter core profit but still managed to outperform market expectations, reflecting the company’s resilience amid a weak industrial environment and sluggish global demand.
Evonik’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at €448 million for the third quarter, marking a significant year-on-year drop from 2024. Despite this fall, the figure slightly exceeded analysts’ average forecast of around €440 million, underscoring the company’s ability to cushion the blow from a downturn in the chemical industry.
The company attributed the profit decline to a persistent slowdown in demand, particularly from key end-user industries such as construction, automotive, and consumer goods. These sectors have struggled under the combined weight of global inflation, muted exports, and high energy prices challenges that have taken a toll across Germany’s manufacturing sector.
Chief Executive Officer Christian Kullmann acknowledged the difficulties facing the company, stating that the much-anticipated September recovery “failed to materialize.” He described the situation as “painful in the short term” but reaffirmed Evonik’s commitment to improving efficiency and stabilizing operations.
Kullmann also noted that the broader German chemical industry traditionally one of Europe’s strongest manufacturing pillars continues to suffer from elevated energy costs, weaker global trade flows, and fragile consumer demand. The sector’s slow rebound has raised questions about the competitiveness of German industry in the face of cheaper global alternatives.
Despite the earnings slump, Evonik maintained its revised full-year guidance, which was lowered earlier in September. The company expressed confidence in meeting the updated targets through disciplined cost management, strategic product focus, and tighter operational control.
Chief Financial Officer Claus Rettig said the company’s cost-cutting and restructuring measures are beginning to yield results, helping Evonik remain within its profitability range even amid softer market conditions. However, he declined to issue a detailed forecast for the fourth quarter a notable departure from the company’s usual practice, reflecting continued uncertainty about near-term demand trends.
Evonik’s performance mirrors the broader challenges facing Germany’s chemical industry, which has seen reduced production levels and squeezed profit margins throughout 2025. High input costs and slower demand from Asia have compounded domestic struggles, leaving many companies in the sector operating below capacity.
Still, Evonik’s ability to outperform estimates has been viewed positively by investors, as it signals that the company’s internal measures including portfolio streamlining and efficiency programs are mitigating some of the external pressures.
Looking ahead, Evonik aims to strengthen its specialty chemicals portfolio, focusing on high-margin segments such as sustainable materials and additives for pharmaceuticals and nutrition. The company is also investing in research and innovation to accelerate its transition toward greener and more efficient production processes.
Analysts believe Evonik’s near-term success will depend largely on two factors: whether energy costs in Europe stabilize and whether demand in China and the United States rebounds strongly enough to lift global chemical trade.
For now, Evonik stands as a symbol of cautious optimism a company grappling with the realities of an uncertain economy while managing to stay a step ahead of expectations.