WACKER Posts Q2 2025 Results in Line with Market Expectations Amid Challenging Environment
Wacker Chemie AG has reported its financial results for the second quarter of 2025, meeting average market expectations despite continued macroeconomic headwinds, including weaker demand and unfavorable currency developments. The company posted an EBITDA of €114 million for the quarter, down 26 percent year over year from €155 million in Q2 2024. The decline was primarily attributed to lower sales volumes, reduced plant-utilization rates in certain divisions, and the negative impact of the EUR/USD exchange rate.
The Group’s EBITDA margin for the second quarter stood at 8.1 percent, compared to 10.5 percent in the same period last year. The margin was also flat compared to the prior quarter, suggesting a stable yet pressured operating environment. WACKER’s second-quarter revenue reached €1.41 billion, aligning closely with the consensus estimate of €1.44 billion as reported by Vara Research on July 24, 2025. Similarly, the reported EBITDA was just slightly below the €119 million market expectation.
Earnings Reflect a Weak Market and Operational Adjustments
Despite matching market forecasts, WACKER’s profitability saw significant declines. EBIT (earnings before interest and taxes) came in at €-11 million, compared to €38 million in the year-ago quarter. This translates into a negative EBIT margin of -0.8 percent, down from 2.6 percent in Q2 2024. Net income for the quarter turned negative as well, totaling €-19 million, compared to a positive €35 million in the same period last year. As a result, earnings per share (EPS) dropped to €-0.49 from €0.58.
Commenting on the quarterly performance, Christian Hartel, President & CEO of Wacker Chemie AG, acknowledged the tough operating climate. “Following a good start to the first quarter, demand among many customers was weak in the second quarter. Trade policy uncertainties in particular are hampering the economy,” Hartel noted. He added, “Amid a challenging environment, we achieved solid figures in line with market expectations.”
Looking ahead, Hartel was cautious. “There are no signs of a recovery so far, which is why we revised our outlook for 2025 on July 18,” he said. WACKER plans to respond to these challenges by sharpening its focus on growth, cost management, and cash generation. The CEO highlighted ongoing initiatives including intensified customer engagement, strengthened sales activities, innovation-driven product development, and streamlined capital expenditures.
Regional Sales Performance: Decline in Asia, Modest Growth in Europe
WACKER continued to generate the bulk of its revenue outside Germany, with international markets accounting for 83 percent of total sales. In Germany, the company generated 17 percent of Q2 revenues.
Sales performance by region was mixed. The Americas posted a 5 percent decline in sales, totaling €261 million compared to €276 million in Q2 2024. Europe delivered modest growth with revenues of €581 million, a 2 percent increase over the prior year. Asia, however, experienced a significant decline of 11 percent, with Q2 2025 revenues falling to €483 million from €540 million a year earlier.
Capital Expenditures and Cash Flow
Capital investments during the quarter were markedly lower than the previous year, totaling €96 million versus €177 million in Q2 2024. These investments were mainly targeted at expanding production capacities across several divisions. In the Silicones division, key projects included a new specialty silicones site in Karlovy Vary, Czech Republic. The Polymers division saw ongoing work on capacity enhancements for VAE dispersions in Calvert City, USA. Meanwhile, the Polysilicon division focused its investments on the Burghausen site, where a new production line for hyperpure semiconductor-grade polysilicon was officially launched in July. This expansion boosts the division’s output capacity by over 50 percent and further enhances product purity.
Net cash flow for Q2 2025 came in at €-137 million, showing a notable improvement from the €-179 million reported in Q2 2024. The improved cash flow was largely due to the absence of significant inventory build-ups in the Polysilicon division, which had adversely affected the previous year’s figures.
Stable Headcount Across the Organization
As of June 30, 2025, WACKER employed 16,724 people globally, a slight increase from the 16,655 reported at the end of March. Of these, 10,767 employees were based in Germany, while 5,957 were located at international sites. The workforce remained largely stable quarter over quarter, reflecting a steady operational strategy amid an uncertain external environment.
Business Division Performance
WACKER’s four core business divisions delivered varied performances in Q2 2025, with some showing resilience despite broader market challenges.
- Silicones Division
Sales in the Silicones division totaled €713 million, down 1 percent year over year from €719 million and 4 percent lower than the preceding quarter. However, EBITDA rose 16 percent to €104 million, compared to €90 million in Q2 2024. The earnings improvement was attributed to increased volumes, particularly in healthcare applications such as silicone adhesives for wound care. Additionally, insurance compensation in the low double-digit million-euro range provided a one-time boost. - Polymers Division
The Polymers segment faced significant headwinds from the ongoing downturn in the global construction industry, especially in China and Western Europe. Sales fell 7 percent to €363 million (Q2 2024: €389 million), while EBITDA declined sharply by 32 percent to €40 million from €59 million. Lower volumes and prices, combined with underutilized production capacities, were the primary factors behind the decline. - Biosolutions Division
Sales in the Biosolutions division dropped 11 percent year over year to €87 million from €98 million. Nevertheless, the division’s EBITDA improved significantly to €5 million, up from €1 million in Q2 2024. Positive contributions came from the CDMO business in León, Spain, which produces dietary ingredients, as well as from strong performance in biopharmaceuticals. However, lower demand for some product groups weighed on the top line. - Polysilicon Division
The Polysilicon division also reported weaker results, with sales declining 6 percent year over year to €218 million, compared to €232 million in Q2 2024. EBITDA dropped 39 percent to €34 million from €55 million. Lower sales volumes of solar-grade polysilicon and reduced plant-utilization rates were key contributors to the decline. That said, demand and performance remained strong in the hyperpure semiconductor-grade polysilicon segment.
