Evonik Shares Jump 5% on Radical Polyester Exit and Deep Cost-Cutting Plan
19.06.2026 - 17:47:30 | boerse-global.de
Investors have thrown their weight behind Evonik's most sweeping overhaul in years, sending the specialty chemicals group’s stock up more than 5% to €16.02. The rally came after management set out plans to exit the loss-making global polyester business and cut thousands of jobs by the end of the decade. The market's thumbs-up signals a belief that the tough medicine will eventually strengthen the company’s earnings profile.
The polyester exit, due to be completed next year, will claim 350 positions across three sites: Witten and Marl in Germany, and Shanghai. “There was no economic alternative,” said board member Lauren Kjeldsen, citing structural disadvantages in Europe and persistently weak demand. The division, which generated around €150 million in revenue, had been stuck in the red for some time.
Parallel to shedding polyester, Evonik is pressing ahead with a far-reaching headcount reduction. By 2029, 3,200 roles will disappear worldwide, with the bulk of the cuts falling in Germany. CEO Christian Kullmann framed the move as a response to sluggish economic growth and a need to boost efficiency through digitalisation. The restructuring builds on an existing cost-savings programme that is already targeting hundreds of millions of euros in annual savings.
Against a backdrop of market headwinds, Evonik’s first-quarter numbers offered a mixed picture. Revenue slipped 9% to €3.43 billion, dragged down by lower prices and unfavourable currency moves. But adjusted operating earnings of €475 million beat the company’s own expectations, and the board has guided for at least €550 million in the current quarter. The overarching profit forecast for 2026 remains unchanged.
Should investors sell immediately? Or is it worth buying Evonik?
The group is not just cutting costs but also rethinking how it innovates. Two-thirds of researchers will eventually work directly within the business units to accelerate product launches. A newly created Innovation Factory will bundle strategically important programmes, focusing on bio-based solutions, the energy transition, and the circular economy. Management believes these three pillars can generate an additional €1.5 billion in revenue by 2032.
Research and development spending will stay steady at roughly 3% of group sales, underscoring the company’s determination to keep the innovation pipeline flowing even as it shrinks elsewhere.
Evonik is also cleaning up its portfolio beyond polyester. The planned disposal of the standard chemicals business includes the C4 chemicals complex tied to petrochemical additives. The divestment process continues, and management will face analysts in investor update calls at the end of June, where the speed and impact of the savings on operating profit will be a key topic.
Evonik at a turning point? This analysis reveals what investors need to know now.
On the charts, the stock has advanced around 20% since the start of the year and now sits comfortably above its 200-day moving average of €14.85. That marks a clear technical improvement from earlier this year when the relative strength index had dipped to 32.8, flashing an oversold signal. The 52-week high of €18.48 now becomes the next test. To close that gap, Evonik will need to deliver a tangible improvement in earnings quality in the second half of the year, even as energy costs continue to rise.
Ad
Evonik Stock: New Analysis - 19 June
Fresh Evonik information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
