Wacker Chemie (WCH) Q2 2025 earnings summary

Executive summary

• Q2 2025 sales declined 4% year-over-year to €1.41 billion, with EBITDA down 26% to €114 million and net income at -€19 million, reflecting weak demand, intense competition, and trade-related uncertainty.

• Macroeconomic and geopolitical headwinds, including tariffs and unfavorable FX rates, weighed on performance across all segments.

• Sequential EBITDA increased 7% from Q1, mainly due to insurance compensation in silicones and higher semiconductor-grade polysilicon volumes.

• Strategic focus remains on growth, cash, and cost initiatives, with emphasis on specialties, efficiency, and digitalization.

• Net debt increased to €1.14 billion, driven by lower cash flow and dividend payments.

Financial highlights

• Q2 sales were €1.41 billion, down 4% year-over-year, mainly due to exchange rate, pricing, and volume effects.

• Q2 EBITDA declined to €114 million from €155 million a year ago; EBITDA margin fell to 8.1% from 10.5%.

• EBIT was -€11 million versus €38 million a year ago, driven by lower EBITDA and higher depreciation.

• Net income was -€19 million, or -€0.49 per share.

• CapEx dropped 46% year-over-year to €96 million; net cash flow was -€137 million, improved from -€179 million in Q2 2024.

Outlook and guidance

• Full-year 2025 sales forecast is €5.5–5.9 billion (previously €6.1–6.4 billion), with EBITDA expected between €500–700 million, down from €700–900 million.

• Net cash flow and ROCE expected to be substantially below previous year; net debt to rise significantly year-over-year.

• Silicones and Biosolutions sales and EBITDA expected at prior year levels; Polymers sales to decline low single digits with stable margin; Polysilicon sales at prior year level with ~€100 million EBITDA.

• Q3 EBITDA expected similar to Q2, excluding the Q2 insurance compensation in silicones.

• Focus on growth via intensified sales, cash flow improvement through working capital measures, and cost reduction.