Evonik's Essen Silicone Bet Meets a Split Analyst Verdict
Published on 11/04/2026 at 07:01 | Editorial boerse-global.de
Evonik has opened a new specialty silicones plant and tank farm in Essen, closing out a roughly €52 million investment that the company says will cut transport volumes across its international production network and head off bottlenecks. The commissioning, confirmed yesterday, gives investors a tangible yardstick for judging Evonik's standalone strategy — one that hinges less on headline growth than on whether smoother operations translate into higher returns on capital.
Essen is a linchpin of Evonik's silicone output, and the added capacity is paired with logistical gains: fewer shipments and reduced exposure to supply interruptions are meant to reinforce the wider production compound. The specialty silicones feed into insulation materials, mattresses and car seats, as well as adhesives, paints, coatings and cosmetics — a spread that touches several end markets rather than a single outlet. Whether the promised efficiencies actually show up in day-to-day operations is the open question; the size of the cheque alone says nothing about the earnings contribution.
A 40% Earnings Leap, and a Loss Beneath It
The operational backdrop is brighter than the bottom line. Adjusted EBITDA in the reported quarter climbed 40% year on year to €629 million, while revenue advanced 13% to €3.83 billion. Under the line, however, Evonik booked a loss of €53 million — a divergence that means the adjusted figure on its own does not tell the full story of profitability.
Looking ahead, the group expects adjusted EBITDA for 2026 in the upper half of its existing €2.0 billion to €2.2 billion range, a refinement within the current framework rather than a lift of the full guidance band. That distinction matters when weighing the analyst calls: Evonik is signalling stronger earnings momentum without setting a new ceiling.
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Two Houses, Two Verdicts
The market's response has been anything but uniform. Jefferies reiterated its buy rating and €20 price target yesterday, the same day JPMorgan restated its underweight stance with a €14 target. Neither house changed its rating after the quarterly release, and the gap between the two targets captures the debate: how much credit should operating growth and the sharpened full-year outlook receive when a net loss sits underneath?
Buybacks of a Different Kind
The Essen expansion runs alongside a broader reshaping. According to Börsen-Zeitung, Evonik expects a buyer for Oxeno in the coming months, with sale preparations for Synect also under way — site investment and divestments forming separate pieces of the same corporate puzzle. Management has set a return-on-capital-employed target of 11% by 2029, against a 2025 Roce of 6.1%, so the bar demands a marked step up from today's level.
Costs are moving in parallel with the spending. Evonik plans to shed 3,200 jobs worldwide by 2029, meaning the Essen build-out is no counterweight to the savings drive — investment at a central production site and group-wide cost cuts are running side by side.
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Interim chief Claus Rettig reaffirmed the company's claim to independence yesterday, stating that Evonik is not conducting takeover negotiations with BASF while remaining open to a confidential, purely informational exchange. The new silicone plant makes that standalone case more concrete on the ground, yet it does not substitute for proof that Evonik can hit its return targets. For that, site investments, portfolio changes and savings will all have to pull in the same direction.
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