Evonik shared a strategic update during its Capital Markets Day, outlining a plan to raise adjusted EBITDA by €1 billion by 2027. The company plans to achieve this equally through growth and cost optimization measures.

The strategy centers on four pillars: a newly segmented portfolio structure, sustainable innovation, regional balance, and a culture of performance and respect. Evonik’s key financial target is a return on capital employed (ROCE) of around 11 percent, with a cash conversion rate maintained above 40 percent.

“We are working consistently on two sides of the same coin – on our growth opportunities and on our costs,” said Christian Kullmann, CEO. The €500 million growth contribution is expected from new products and higher utilization in Innovation Growth Areas, including biodegradable biosurfactants, biodiesel catalysts, and advanced membranes. On the optimization side, savings will come from existing programs such as “Evonik Tailor Made,” ePro in procurement, and initiatives in Animal Nutrition, Silica, and High Performance Polymers.

Evonik CFO Maike Schuh said the company will focus on execution through 2027, ruling out acquisitions during this period while leaving open the possibility of future shareholder distributions, including share buybacks.

The company also reaffirmed its sustainability goals: by 2030, Scope 1 and 2 emissions are to be cut by 25 percent, and products with proven sustainability benefits (“Next Generation Solutions”) are expected to account for 50 percent of revenue. Executive compensation will be linked to both financial and environmental performance.