Evonik defies industry slump with steady stock growth and leadership moves
The RAG Foundation is shifting its investment strategy and reducing its reliance on Evonik's financial performance. Meanwhile, the chemicals company is preparing to extend CEO Christian Kullmann's contract. These moves come as Evonik's stock price has steadily climbed over the past five years, contrasting sharply with declines at rivals BASF and Bayer. Between March 2021 and March 2026, Evonik's share price rose by about 25%, moving from €28 to €35. During the same period, BASF's stock dropped 15%, from €65 to €55, while Bayer's plunged by 50%, from €55 to €27. Evonik's market capitalisation now stands at €13 billion, far smaller than BASF's €50 billion and Bayer's €25 billion. Analysts attribute this growth to Evonik's focus on specialty chemicals, which has shielded it from volatility in commodity markets.
The RAG Foundation, Evonik's largest shareholder with a 46% stake, has diversified its holdings and is transitioning into a more conventional investor. It supports Evonik's revised dividend policy, which lowers payouts to shareholders. Bernd Tönjes, chairman of Evonik's supervisory board, has also stated that the company's current market valuation does not reflect its full potential. Leadership stability remains a priority. Tönjes stressed the need for continuity, hinting at an extension for Kullmann this summer. Additionally, the supervisory board aims to appoint a new CFO by June. The ideal candidate must have crisis experience, resilience, and a strong background in managing corporate transformations.
Evonik's steady stock performance and strategic focus on specialty chemicals set it apart from struggling competitors. With a new dividend policy in place and leadership decisions pending, the company is positioning itself for long-term stability. The RAG Foundation's evolving role as an investor further signals a shift in how Evonik's future will be shaped.
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