Cash Flow

Net cash flow

WACKER’s long-term objective is to finance its capital expenditures primarily from its own cash flow. This target was not achieved in 2024 due to ongoing high levels of capital expenditure. Net cash flow totaled €-326.0 million in 2024 (2023: €165.6 million). Inventory buildup measures, in particular, had a negative impact on net cash flow.

Net cash flow is defined as the sum of cash flow from operating activities and cash flow from long-term investing activities (excluding securities).

Net cash flow

Gross cash flow

Cash flow from operating activities (gross cash flow) came to €310.4 million in 2024, down considerably year over year (2023: €936.3 million). This drop is mainly due to the change in working capital of €-386.6 million (2023: €224.5 million). The build-up of inventories, in particular, had a negative impact in this regard, whereas in the previous year, inventory reduction measures and a decline in trade receivables had had a positive effect on cash flow. The decline can also be explained by lower net income for the year, which came to €260.7 million (2023: €327.3 million).

Cash flow from operating activities (gross cash flow)

Cash flow from long-term investing activities

The Group’s investment projects are the key factor influencing cash flow from long-term investing activities. In 2024, cash payments of €652.1 million for capital expenditures were on a par with the previous year (2023: €640.2 million). More than half of the capital expenditures were focused in Germany. Investments in acquisitions of €-11.6 million (2023: €-110.4 million) were made in connection with assets acquired in an asset deal in the USA. A year earlier, WACKER had acquired Wacker Biosolutions S.L.U. (formerly ADL BioPharma S.L.U.), León, Spain, as part of a share deal. Cash flow from long-term investing activities before securities amounted to €-636.4 million in the reporting period from January to December 2024 (2023: €-770.7 million).

Cash flow from long-term investing activities before securities

Cash flow from financing activities

Cash flow from financing activities totaled €145.9 million in the reporting year (2023: €-688.1 million). This was the result of cash outflows from the repayment of financing liabilities of €272.4 million (2023: €454.0 million) and cash inflows from new financing liabilities of €623.1 million (2023: €407.2 million). Wacker Chemie AG’s dividend payment of €149.0 million (2023: €596.1 million) led to a cash outflow in the second quarter. Repayments of lease liabilities were virtually constant year over year at €35.9 million (2023: €36.5 million).

Cash and cash equivalents

Cash and cash equivalents came to €1.05 billion on the reporting date (2023: €1.01 billion). Liquidity from cash and from noncurrent and current securities remained at a high level of €1.26 billion (2023: €1.42 billion).

WACKER reports higher net financial debt

WACKER defines net financial debt/net financial assets as the balance of gross financial debt (noncurrent and current financing liabilities) and existing noncurrent and current liquidity, consisting of securities, cash and cash equivalents. Net financial debt totaled €-690.6 million as of December 31, 2024 (Dec. 31, 2023: €-83.7 million).

Net financial assets / net financial debt

Aside from the financing liabilities disclosed in the report on net assets, WACKER has at its disposal an adequate amount (around €600 million) in unused lines of credit with maturities of over one year. Our existing lines of credit provide us with enough financial scope to secure the Group’s continued growth. The Group does not engage in any off-balance-sheet financing.