Wacker Chemie reports €805M loss and 1,500 job cuts in 2025 downturn
Wacker Chemie has reported a challenging year for 2025, with revenue and earnings both falling sharply. The company recorded a net loss of €805 million, driven by weak demand, high costs, and market pressures. Over 1,500 jobs will now be cut as part of a major cost-saving plan.
The chemical group's total revenue for 2025 reached €5.49 billion, down 4% from the previous year. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) dropped even further, falling 43% to €427 million. The decline came from lower sales volumes, reduced prices, and underused production capacity, alongside persistently high energy costs in Germany.
Special charges and write-downs of around €600 million pushed the company into a net loss of –€805 million. As a result, the Executive and Supervisory Boards will recommend skipping dividend payments for 2025 at the upcoming Annual General Meeting.
In response, Wacker Chemie launched its largest cost-cutting programme, PACE, in October 2025. The initiative aims to slash annual expenses by over €300 million, with more than 1,500 jobs set to go—mostly in Germany.
Despite the downturn, the company has strengthened its position in the polysilicon market over the past three years. Its global market share grew from around 20% to 28%, thanks to capacity expansions in Nünchritz, Germany. Meanwhile, competitors like Tokuyama Corporation scaled back production, while OCI Company shifted focus to downstream solar products, reducing its polysilicon share to below 15%.
Looking ahead, Wacker Chemie expects low single-digit revenue growth for 2026, with EBITDA projected between €550 million and €700 million. First-quarter revenue is forecast at around €1.35 billion—below last year's figure—but EBITDA is expected to improve.
CEO Christian Hartel acknowledged the severe pressures facing the chemical industry in 2025. Weak demand, market uncertainty, and new competitors have all contributed to the difficult trading environment.
The company's cost-cutting measures and market adjustments aim to stabilise its financial position. With no dividend proposed for 2025, shareholders will face the impact of the downturn. The focus now turns to recovery, with cautious optimism for modest growth in the year ahead.
