TSX gains on big banks strength
Investing.com -- Evonik (ETR:EVKn)shares dropped more than 5% on Friday after the company reported second-quarter earnings in line with expectations but lowered its full-year sales forecast and said results would likely land at the bottom of its guidance range.
Adjusted EBITDA for the quarter was €509 million, down 12% from €578 million a year earlier and matching both Jefferies and consensus estimates of €511 million.
Group sales fell 6% year over year to €3.50 billion, missing the €3.64 billion estimate.
The decline included a 5% organic drop (volumes -4%, prices -1%), with portfolio and currency effects reducing sales by 3% each.
Full-year adjusted EBITDA guidance of €2 billion to €2.3 billion was maintained, but the German specialty chemicals company now expects to be at the lower end of the range.
Revenue expectations were revised down to €14 billion to €15 billion from a previous forecast of €15 billion to €17 billion.
Free cash flow conversion guidance was held at 40%, while capital expenditure plans were reduced to €750 million from €850 million.
By division, Custom Solutions posted adjusted EBITDA of €254 million, in line with estimates but down 10% from €281 million in the prior-year quarter.
Sales declined 7% to €1.37 billion. The company cut its full-year outlook for the segment to “slightly above prior-year level,” down from “considerably above.”
The Advanced Technologies segment delivered adjusted EBITDA of €266 million, flat year over year but 5% above estimates.
Sales totaled €1.51 billion, nearly unchanged from the prior year. Volumes rose 1% and prices fell 1%, while portfolio and currency effects were +3% and -4%, respectively. The outlook was revised to “slightly below prior-year level” from “on prior-year level.”
In Infrastructure and Other, adjusted EBITDA swung to a €11 million loss from a €31 million profit a year earlier.
Sales dropped 33% to €621 million. The company cited weak C4 spreads and demand. Guidance for the division was lowered to “significantly below prior-year level.”
Operating cash flow from continuing operations was negative €35 million, down from €360 million in the second quarter of 2024.
Free cash flow was negative €211 million, compared with €217 million a year earlier. Net financial debt stood at €3.86 billion, equating to 1.8x net debt to adjusted EBITDA.