Evonik Earnings: EBITDA Considerably Above Consensus; Outlook Confirmed for 2024
No-moat Evonik reported a better-than-expected first quarter, with EBITDA of EUR 522 million, up 28% over 2023 and 16% above Vara consensus. The growth was mainly supported by cost savings in the nutrition and care segment, followed by operating leverage in the specialty additives segment. EBITDA for next quarter is expected to be at the same level. However, management remains conservative for the year with EBITDA confirmed in the range of EUR 1.7 billion-EUR 2.0 billion. This is still in line with our forecast, so we don’t expect to make a material change to our EUR 25 fair value estimate. Despite the strong results, the share price remained broadly stable. At current levels, the shares look undervalued.