Evonik (EVKn.DE) 3Q26: In-Line EBITDA, No Material Strategy Update

Q3 EBITDA of €629m was in-line with consensus and guidance but arguably slightly below investor expectations. Advanced Technologies delivered a strong beat, supported by methionine pricing, while the higher-multiple Custom Solutions segment missed forecasts. The latter saw some destocking following a strong Q2, with volumes flat YoY. Infrastructure/Other also fell short, despite continued C4 strength, due to bonus provisions. FCF was strong again, with 9M FCF more than double the prior-year level. Management now expects full-year EBITDA in the upper half of its €2.0-2.2bn range, versus consensus already at the top end. Following Friday's rejection of BASF's €24/shr offer, the presentation contains limited incremental news. Management reiterated its strategy to reach an 11% ROCE by 2029 through innovation-led growth, Tailor Made savings and a further reduction in mid-term capex to c.€700m, while Oxeno/C4 is expected to be divested 「in the coming months」. Taken at face value, the implied