Wacker Chemie (WCH) Q1 2026 earnings summary

Executive summary

• Q1 2026 sales reached EUR 1.41 billion, down 5% year-over-year, mainly due to FX headwinds, but up 12% sequentially from Q4 2025, driven by cost savings and customer order pull-forwards amid Middle East conflict.

• EBITDA rose 45% year-over-year to EUR 173 million, reflecting improved operational efficiency and benefits from the PACE cost program.

• Net income improved to EUR 15 million from a EUR 3 million loss in Q1 2025; EPS increased to EUR 0.21.

• All divisions saw sequential sales growth from Q4 2025, but only Biosolutions posted year-over-year sales growth.

• The company remains focused on cost reduction, operational efficiency, and strengthening its business model.

Financial highlights

• EBITDA margin improved to 12.3% from 8.1% in Q1 2025 and 6.5% in Q4 2025.

• EBIT was EUR 52 million, up from EUR -7 million in Q1 2025; net income was EUR 15 million versus EUR -3 million a year ago.

• Net cash flow improved to EUR -32 million from EUR -165 million in Q1 2025, mainly due to lower investments and working capital.

• Liquidity stood at EUR 1.44 billion, with equity at EUR 3.82 billion and an equity ratio of 45%.

• Net debt at quarter-end was EUR 964 million, up from EUR 880 million in Q1 2025.

Outlook and guidance

• Full-year 2026 EBITDA guidance confirmed at EUR 550–700 million; sales growth now expected in the high single-digit percentage range.

• Price increases announced in Silicones and Polymers to offset rising raw material costs.

• Capital expenditures for 2026 projected at EUR 300 million; positive net cash flow expected, significantly above 2025.

• Outlook remains highly uncertain due to Middle East conflict and unresolved U.S. trade proceedings on polysilicon.

• Q2 expected to be lower than Q1 due to one-off pull-forward effects and timing of cost and price changes.