Evonik’s New CFO Steps In as Earnings Test Looms and Methionine Prices Lift the Outlook

Evonik names Michael Rauch permanent CFO as Q1 results loom; shares rally 32% YTD on methionine supply tightness and cost cuts, but dividend drops to €1.00.

The specialty chemicals group Evonik has filled a key leadership vacancy just as the first-quarter reporting season gets underway. Michael Rauch will take over as chief financial officer on May 1, stepping into a role that had been held on an interim basis by CEO Christian Kullmann. Kullmann, whose own mandate runs until 2030, now has a permanent deputy to help steer the company through a period of operational strain and strategic recalibration.

Rauch brings 16 years of experience in the chemicals sector, most recently at Henkel, where he held various management positions. His appointment is designed to bolster Evonik’s resilience against market volatility. The new CFO’s first major test comes on Friday, when the group publishes its first-quarter results. Deutsche Bank expects adjusted operating profit of €461 million, an 18% decline year-on-year, while Evonik’s own guidance points to around €448 million. Lower margins and adverse currency movements are weighing on the top line.

Despite the near-term headwinds, the stock has staged a powerful recovery. Shares currently trade at around €17.55, having climbed roughly 32% since the start of the year. That marks a sharp rebound from the year’s low and has pushed the price well above its 200-day moving average. The rally has been fuelled in part by a tightening in the methionine market, where supply bottlenecks in Asia are driving prices higher in both China and Europe. Barclays has responded by lifting its full-year earnings estimate for Evonik to €1.89 billion.

The group’s long-term planning also provides a buffer. Evonik has locked in around 80% of its energy needs through multi-year contracts, a level well above the industry average. At the same time, a cost-cutting programme is gathering pace. The company is eliminating up to 2,000 jobs worldwide and targeting annual savings of €400 million. Management has left its full-year guidance unchanged, forecasting adjusted EBITDA in a range of €1.7 billion to €2.0 billion.

Shareholders will have their say on June 3, when the annual general meeting convenes. The board has proposed a dividend of €1.00 per share for 2025, down from €1.17 the previous year. That payout is part of a broader shift in dividend policy: going forward, Evonik intends to distribute roughly half of its adjusted net profit to investors. The AGM will also mark Rauch’s first public appearance in front of equity holders.

Analyst views on the stock remain split. Price targets range from just under €13 to more than €20, reflecting the uncertainty around the company’s earnings trajectory. Deutsche Bank has maintained its “hold” rating while raising its target to €15. On a valuation basis, the shares trade at a price-to-earnings multiple of nearly 32, a significant premium to the sector average, though some optimistic models peg the fair value at over €42.

For longer-term investors, the picture is more sobering. Despite this year’s gains, anyone who bought Evonik at its IPO price of €33 five years ago is still sitting on a substantial loss. The coming weeks will show whether the new leadership team and a more disciplined capital allocation strategy can close that gap.