Wacker reports increased profits despite lower sales

Munich, Germany — Wacker Chemie AG reported stronger first-quarter earnings Tuesday despite lower sales, as cost-cutting measures and accelerated customer orders tied to geopolitical uncertainty boosted profitability.

The German chemical company said first-quarter sales fell 5% year over year to 1.41 billion euros, primarily due to unfavorable exchange-rate effects. Sales, however, increased 12% from the previous quarter.

EBITDA rose 45% to 173 million euros from 119 million euros a year earlier, while net income improved to 15 million euros from a loss of 3 million euros in the prior-year period.

CEO Christian Hartel said the company delivered a solid start to the year despite continued weak market conditions.

WACKER said earnings benefited from savings generated through its PACE cost-savings and restructuring program, launched in October 2025, as well as customer orders brought forward because of concerns surrounding supply-chain stability amid the conflict in the Middle East.

The company said the PACE initiative is intended to generate more than 300 million euros in annual savings and includes plans to reduce more than 1,500 jobs globally, most of them in Germany.

Sales in the Silicones division declined 5% to 708 million euros, though EBITDA for the segment increased 13% to 117 million euros due to lower operating expenses and stronger late-quarter demand.

The Polymers division reported an 8% decline in sales to 333 million euros, reflecting continued weakness in the construction industry, particularly in China and Europe. EBITDA for the segment rose 33% to 50 million euros.

The Biosolutions division posted a 9% increase in sales to 100 million euros, driven by growth in biopharmaceutical and cyclodextrin business lines. EBITDA climbed to 13 million euros from 5 million euros a year earlier.

In the Polysilicon division, sales fell 8% to 226 million euros as weakness in solar-grade polysilicon offset continued strength in semiconductor applications. EBITDA for the segment was largely unchanged at 23 million euros.

WACKER said capital expenditures during the quarter declined to 61 million euros from 93 million euros a year earlier, while net cash flow improved to negative 32 million euros from negative 165 million euros.

The company raised its full-year sales outlook, now forecasting growth in the high single-digit percentage range, citing its ability to pass along higher energy and raw-material costs to customers. WACKER maintained its EBITDA guidance of 550 million euros to 700 million euros for 2026.

Hartel cautioned that ongoing geopolitical tensions and uncertainty surrounding global trade and energy markets continue to create volatility for the business.