Comparing Actual with Forecast Performance

At the start of 2024, WACKER forecast full-year sales of between €6.0 billion and €6.5 billion. The EBITDA margin was expected to be much lower than the previous year, while EBITDA was forecast at between €600 million and €800 million. ROCE was likely to be much lower than the year before. Net cash flow was expected to be negative and significantly below the prior-year figure. Capital expenditures would be slightly lower than the previous year, with depreciation and amortization amounting to around €450 million. WACKER projected a higher net financial debt for 2024.

WACKER closes 2024 with a decline in sales and EBITDA year over year

As forecast, sales and earnings declined year over year in 2024. WACKER posted sales of €5.72 billion (2023: €6.40 billion), down 10.6 percent year over year. This means that sales are lower than the forecast range. The drop, which was more pronounced than expected, was due primarily to lower prices and much lower volumes at Polysilicon. EBITDA came in at €762.8 million, 7.4 percent lower year over year. This puts EBITDA at the upper end of the forecast range. The decline is due to lower prices, particularly for solar-grade polysilicon, but also to persistently high energy costs in Germany, coupled with lower plant-utilization rates in some cases as a result of the decline in sales.

At 13.3 percent, the EBITDA margin was slightly higher than a year ago. The EBITDA margin had been predicted to fall considerably year over year. One of the main reasons for the higher margin is that profitability in the Silicones division developed better than expected.

Net cash flow came in at €-326.0 million in 2024. The marked drop reflected lower earnings and an increase in working capital. ROCE, at 5.0 percent, fell significantly versus the year before. Net cash flow and ROCE both trended as expected.

Capital expenditures amounted to €666.0 million in 2024, slightly below the year-earlier level, as projected.

Depreciation and amortization came to €473 million, slightly higher than the forecast of €450 million. At year-end, WACKER recognized net financial debt of €690.6 million. As forecast, net financial debt increased.