German chemicals group Wacker Chemie AG reported a sharp earnings slump in 2025, posting a €805 million net loss and canceling its dividend as weak demand, high energy costs and restructuring charges battered the business.
The Munich-based company confirmed that group sales fell 4 percent to €5.49 billion, down from €5.72 billion in 2024, as the global chemical industry faced what executives described as a year of intense pressure.
Reported EBITDA plunged 43 percent to €427 million, though adjusted EBITDA before special effects came in at €529 million, broadly in line with market expectations.
The losses were driven by restructuring charges tied to the company’s sweeping cost-cutting initiative, Project PACE, alongside asset write-downs totaling around €600 million.
With the company reporting a net loss of €805 million, its board will propose no dividend for 2025 at the upcoming annual shareholders’ meeting on May 6.
Write-downs included €308 million linked to shares in Siltronic AG, €194 million in deferred tax assets in Germany, and €89 million in goodwill impairment tied to the acquisition of Spain’s ADL Biopharma.
“In 2025, the chemical industry faced tremendous pressure. Demand in many customer sectors remained weak. Trade conflicts and geopolitical crises triggered uncertainty on the market, making customers reluctant to place orders. Many companies postponed investment spending,” said Christian Hartel, CEO of Wacker Chemie AG, at the company’s annual press conference in Munich.
“In addition, new competitors are entering the market,” he added, pointing to rising excess capacity and structural changes across the sector.
Despite meeting expectations, Hartel acknowledged the results were disappointing.
“With annual sales of €5.49 billion and EBITDA of around €529 million before special effects, we are in line with market expectations. But we cannot be satisfied with that,” he said.
To restore competitiveness, WACKER launched Project PACE in October 2025 — the largest cost-reduction program in its history.
The initiative aims to cut more than €300 million in annual costs and will eliminate over 1,500 jobs globally, most of them in Germany.
“This will bring our costs to a competitive level and put WACKER back on track for success,” Hartel said.
Looking ahead, the company expects modest growth in 2026, forecasting low single-digit sales increases and EBITDA between €550 million and €700 million.
The first quarter is expected to start slowly due to currency headwinds, though cost savings should lift profitability.
“We still do not see any signs of a turnaround on the market. This makes the levers that we can pull ourselves all the more important. We will continue to work hard on them in 2026," said Hartel.
He said the company is repositioning its business toward specialty chemicals, semiconductor-grade polysilicon and biotech solutions.
“PACE will make us competitive again. At the same time, we elevate our business model and value proposition. In our chemical divisions, we are focusing on specialties; in the Polysilicon division, we are concentrating on the semiconductor market. In our life sciences division, Biosolutions, the focus is on biotech solutions. This strategy puts us in a good position to best serve our customers going forward,” he stated.
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