Earnings

Group sales total €5.72 billion, down by 11 percent on a year earlier

In 2024, the WACKER Group posted markedly lower sales than in the prior year, mainly due to much lower volumes and lower prices for solar-grade silicon at Polysilicon. Excess capacity in China and uncertainty resulting from US anti-dumping tariffs continued to put pressure on the solar-grade polysilicon business. By contrast, the semiconductor-grade polysilicon business performed well. Sales at Polysilicon fell by 41 percent to €949.2 million (2023: €1.60 billion) due to the factors referred to above. Silicones achieved annual sales of €2.81 billion (2023: €2.74 billion), up by 2 percent year over year. This is largely due to an improved product mix, with a higher proportion of specialty products, and better plant utilization rates. Sales at Polymers came in at €1.46 billion in 2024 (2023: €1.58 billion), down 7 percent. The main reason for this was a year-over-year decline in selling prices. Sales at Biosolutions increased by 11 percent to €374.9 million (2023: €337.2 million).

For further information on the business divisions, please refer to the Segments section.

WACKER generated the majority of its sales outside of Germany. International sales came in at €4.81 billion (2023: €5.44 billion), which accounts for 84 percent of total sales.

Further information can be found in the Regions section.

Group EBITDA at €762.8 million, with EBITDA margin at 13.3 percent

Group EBITDA dropped by 7 percent year over year to total €762.8 million (2023: €823.6 million). In addition to the marked drop in sales, persistently high energy costs in Germany coupled with low plant-utilization rates in some cases as a result of the decline in sales, had a negative impact on EBITDA. In the previous year, EBITDA had been hit by provisions for contingent losses from outstanding delivery obligations as well as inventory write-downs. At 13.3 percent, the EBITDA margin was higher than a year ago (2023: 12.9 percent).

For further information on the business divisions, please refer to the Segments section.

Year-over-year sales comparison

EBIT reaches €290.1 million

Group earnings before interest and taxes (EBIT) totaled €290.1 million in the reporting period (2023: €404.9 million), yielding an EBIT margin of 5.1 percent (2023: 6.3 percent). In 2024, depreciation and amortization amounted to €472.7 million (2023: €418.7 million), up due to the commissioning of new production facilities in Germany and China.

Production costs down due to lower capacity utilization

At €986.7 million, gross profit from sales was 9 percent lower year over year (2023: €1.08 billion). The cost of goods sold reached €4.74 billion (2023: €5.32 billion). The gross margin was 17.2 percent (2023: 16.9 percent). Although WACKER was able to leverage efficiency gains to reduce the cost of goods sold, persistently high costs for raw materials and energy, coupled with low plant-utilization rates in some cases as a result of the decline in sales, had a negative impact on the gross margin. The Group’s cost-of-sales ratio remained constant at 83 percent (2023: 83 percent).

Increase in functional costs

Other functional costs (selling, R&D and general administrative expenses) increased year over year by 8 percent to €753.2 million (2023: €699.1 million).

Positive balance of other operating income and expenses

In 2024, the balance of other operating income and expenses was €37.4 million (2023: €-30.2 million). In the reporting year, income of €15.4 million (2023: €10.5 million) from canceled long-term contracts was recognized in profit or loss. Income was also generated from the reversal of contingent losses in the amount of €6.5 million (2023: expenses of €39.2 million). The foreign currency result was positive at €3.9 million (2023: €1.1 million).

Drop in investment income

Compared with the previous year, investment income fell substantially to €19.2 million (2023: €51.2 million). This is due primarily to the lower investment income from Siltronic AG in the amount of €12.7 million (2023: €47.4 million).

Financial and net interest result

WACKER’s financial result deteriorated year over year to €-31.7 million (2023: €-17.9 million). Interest income of €41.4 million (2023: €48.1 million), largely from fixed-term deposits, was offset by interest expenses of €45.6 million (2023: €40.3 million). The increase in interest expenses can be attributed to higher financing liabilities for refinancing purposes. The net interest result was €-4.2 million (2023: €7.8 million).

The other financial result came in at €-27.5 million (2023: €-25.7 million). It consists primarily of valuation effects related to exchange-rate effects on the Group’s financing agreements and interest-rate effects from provisions for pensions and other provisions.

Income taxes

In 2024, WACKER reported tax income of €2.3 million (2023: tax expenses of €59.7 million). The Group’s effective tax rate was -0.9 percent (2023: 15.4 percent). In the reporting year, deferred tax income from previously unrecognized deferred tax assets at US subsidiaries reduced the effective tax rate.

As a result of the effects mentioned, Group net income was €260.7 million, compared with €327.3 million in the previous year.

Return on capital employed (ROCE)

The return on capital employed (ROCE) expresses earnings before interest and taxes (EBIT) in relation to the capital required for business operations (capital employed). Investment income from Siltronic AG and the corresponding carrying amount in equity are not included when ROCE is calculated.

In the reporting year, ROCE was 5.0 percent (2023: 6.9 percent). The decline is due to lower EBIT combined with an increase in capital employed from €5.19 billion to €5.51 billion in the reporting year.