Wacker Chemie (WCH) Q2 2024 earnings summary

Executive summary

• Q2 2024 sales reached €1.47 billion, down 16% year-over-year, mainly due to lower solar-poly volumes, while Chemicals and Polysilicon delivered strong results and the new mRNA facility in Halle was successfully launched.

• EBITDA declined 37% year-over-year to €160 million, with net income at €35 million and EPS at €0.68.

• Chemicals segment showed higher EBITDA year-over-year and quarter-over-quarter, driven by increased demand and lower energy costs.

• The company confirmed its full-year guidance, expecting EBITDA in the upper half of the €600–800 million range.

• Official opening of a new mRNA competence center in Halle, Germany, enabling large-scale mRNA production and tripling site capacity.

Financial highlights

• Q2 sales were €1.47 billion, down 16% year-over-year, with group EBITDA at €160 million, 37% lower year-over-year but up sequentially in key segments.

• Net income for Q2 was €35 million, with EPS at €0.68.

• Liquidity stood at €1.1 billion, and shareholder equity at €4.6 billion.

• Net working capital increased by €278 million since year-end, mainly due to Chemicals receivables and Polysilicon inventory.

• Net debt increased to €661 million after dividend payment and higher working capital.

Outlook and guidance

• Full-year EBITDA expected in the upper half of €600–800 million, driven by improving Chemicals and stable Polysilicon.

• Sales guidance for FY 2024 is €6.0–6.5 billion, with EBITDA margin substantially lower than last year.

• Polysilicon sales guidance updated to €1.1–1.4 billion, EBITDA €200–300 million.

• Q3 expected to be similar to Q2 across segments, with stronger second half anticipated for Biosolutions.

• Working capital build from H1 not expected to repeat in H2; cash flow should improve.