Chemicals major Wacker Chemie has delivered a sharp earnings rebound in the first quarter of 2026, even as revenues slipped year on year amid currency headwinds and a still-weak global market.
Group sales fell 4.9% to €1.41 billion (Q1 2025: €1.48 billion), but rose 12% compared with the previous quarter, signaling a sequential recovery across all divisions.
Profitability, however, surged. EBITDA jumped 45% year on year to €173 million (Q1 2025: €119 million), more than doubling versus the prior quarter. The company said the improvement was driven by cost reductions and timing effects linked to geopolitical disruption.
CEO Christian Hartel pointed to the challenging backdrop but emphasized the solid start to the year: “Given the continued weak market environment, we started the year off well. We were able to increase our earnings primarily due to cost savings and customer orders brought forward.”
Those pulled-forward orders were largely attributed to uncertainty stemming from the conflict in the Middle East, which has disrupted supply chains and influenced purchasing decisions across industries.
Net income turned positive at €15 million, compared with a loss a year earlier, while EBIT swung to €52 million from a loss of €7 million.
The company also noted that its internal cost-cutting drive is beginning to show impact. Hartel said: “With our PACE cost-savings and efficiency program, we are sustainably strengthening WACKER’s long-term competitive position.”
The restructuring program, launched in late 2025, targets more than €300 million in annual savings and includes the reduction of over 1,500 jobs worldwide, mostly in Germany.
Looking ahead, Wacker maintained its EBITDA guidance of €550–700 million for 2026, while upgrading its sales outlook to high single-digit growth due to higher input costs being passed through. However, Hartel warned that “there were no indications of a turnaround so far,” citing weak demand and ongoing geopolitical and cost pressures.
Regional performance remained mixed: the Americas fell 12%, Asia declined 6%, while Europe was broadly stable.
Divisional performance showed resilience in key areas. Silicones and Polymers both posted higher earnings despite lower sales, helped by cost cuts and timing effects. Biosolutions recorded growth in both revenue and profit, while Polysilicon remained under pressure from weaker solar demand, offset partly by semiconductor-related strength.
Capital spending dropped significantly to €61 million, and net cash flow improved to -€32 million, reflecting lower investment and working capital needs.
With uncertainty still clouding global demand, Wacker’s message was clear: efficiency gains are now doing the heavy lifting while the market recovery remains uncertain.
