Wacker Chemie AG, a prominent German chemicals group based in Munich, has announced a substantial net loss of €805 million for the year 2025, prompting the cancellation of its dividend. This decision comes in light of a combination of weak demand, elevated energy costs, and significant restructuring charges that have adversely affected the company’s financial performance.
The company disclosed that group sales experienced a reduction of 4 percent, falling to €5.49 billion from €5.72 billion in 2024. This decline reflects the ongoing challenges faced by the global chemical industry, which executives have described as a year marked by intense pressure.
Reported EBITDA dropped sharply by 43 percent to €427 million. However, adjusted EBITDA, which excludes special effects, reached €529 million, aligning broadly with market expectations.
The financial losses were largely attributed to restructuring charges linked to the company’s extensive cost-cutting initiative, known as Project PACE, as well as asset write-downs amounting to approximately €600 million. Notable write-downs included €308 million associated with shares in Siltronic AG, €194 million related to deferred tax assets in Germany, and €89 million in goodwill impairment following the acquisition of ADL Biopharma in Spain.
Christian Hartel, CEO of Wacker Chemie AG, highlighted the sector’s struggles during the company’s annual press conference, stating, “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.” He also pointed out the emergence of new competitors in the market, which has contributed to rising excess capacity and structural changes within the sector.
Though the results met expectations, Hartel conveyed disappointment, noting, “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.”
In response to these challenges, Wacker Chemie AG initiated Project PACE in October 2025, which is poised to be the largest cost-reduction program in the company’s history. This initiative aims to achieve over €300 million in annual savings and will result in the reduction of more than 1,500 jobs globally, with the majority of cuts occurring in Germany.
Hartel expressed optimism regarding the potential impact of Project PACE, stating, “This will bring our costs to a competitive level and put WACKER back on track for success.” Looking towards the future, the company anticipates modest growth in 2026, projecting low single-digit increases in sales and EBITDA ranging between €550 million and €700 million.
Despite these forecasts, the first quarter of 2026 is expected to begin slowly due to currency headwinds, although anticipated cost savings are expected to enhance profitability. Hartel remarked, “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.”
Wacker Chemie AG is repositioning its operations to focus on specialty chemicals, semiconductor-grade polysilicon, and biotech solutions. Hartel concluded, “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.”