Outlook for 2025

The main assumptions underlying WACKER’s plans relate to raw-material and energy costs, to personnel costs and to exchange rates. For 2025, we anticipate a euro exchange rate of US$1.05 (2024: US$1.10). We assume that energy costs will be lower than last year, while average prices of our key raw materials are expected to be slightly below the prior-year level. On the whole, the majority of our raw-material and energy supplies are secured for 2025.

Performance indicators and value-based management

The main performance indicators for the WACKER Group will remain unchanged year over year.

Group sales in 2025 to benefit from significant volume growth

WACKER expects to see slightly lower selling prices on average in 2025, combined with significantly higher volumes, particularly for specialty products in the chemical divisions and at Polysilicon. Changes in exchange rates will have a positive effect on sales. We expect sales to increase across all regions in 2025. Overall, Group sales are likely to range between €6.1 billion and €6.4 billion.

Various uncertainties and risks may cause the actual performance of the WACKER Group and its divisions to diverge from our assumptions, either positively or negatively. Changes in the economic environment are among the factors than can cause such divergences. We expect selling prices to decline slightly in 2025. At the same time, we anticipate significant volume growth. If the economy recovers over the course of the year, WACKER will have further potential to achieve higher volumes.

Outlook for key performance indicators at the Group level

From today’s standpoint, we forecast the key performance indicators at the Group level as follows.

EBITDA margin and EBITDA: the EBITDA margin is expected to be on a par with last year. EBITDA is likely to come in between €700 million and €900 million.

ROCE: ROCE will match the prior-year level.

Net cash flow: we expect net cash flow to be positive in 2025, significantly higher than last year. This increase will be driven, in particular, by much lower capital expenditures and lower effects from working capital than in the reporting year.

Outlook for supplementary performance indicators at the Group level

Capital expenditures: in 2025, capital expenditures will be considerably below the prior-year level. At the same time, they will be slightly higher than depreciation/amortization, which will amount to just over € 500 million. Capital expenditures will be driven by future customer demand. Projects will include expanding production capacity for semiconductor-grade polysilicon in Burghausen, increasing capacity for silicones in Nünchritz, Karlovy Vary and Zhangjiagang, and increasing capacity for polymers in Calvert City.

Net financial debt: we expect to post net financial debt in 2025 on a par with the previous year.

Divisional sales and EBITDA trends

We expect Silicones to post an increase in sales of around 10 percent in 2025. Growth will be driven primarily by higher volumes, especially for specialty products. We expect sales to be up year over year in all regions. We predict that the EBITDA margin will be up slightly as against 2024.

In Polymers, we expect to see an increase in sales in the low single-digit percentage range. We are forecasting slight growth in volumes for dispersions and dispersible polymer powders, with slightly lower selling prices. Sales are expected to be on a slight upward trajectory in all regions. The EBITDA margin is expected to be on a par with 2024.

Sales in Biosolutions are expected to come in at around €400 million. We are not predicting any major recovery in the market environment, meaning that project business will remain challenging. The EBITDA margin is expected to increase slightly year over year.

We expect the Polysilicon division to post sales of between €1.0 billion and €1.3 billion in 2025 We also expect volumes of semiconductor-grade polysilicon to increase considerably. The solar-grade polysilicon business will remain challenging. EBITDA should range between €100 million and €250 million.

Future dividends

The goal is to distribute half of the Group’s net income to shareholders, assuming the business situation allows this and the committees responsible agree.

Financing

The main features of our financing policy remain valid. We are confident that we have a strong financial profile with a sound capital structure and a balanced maturity profile for our debt. As of December 31, 2024, WACKER had €600 million in unused lines of credit with residual maturities of over one year.

Executive Board statement on overall business expectations

We have identified a number of economic risks for 2025. Global economic development will remain dominated by the implications of both Russia’s war of aggression against Ukraine and the geopolitical conflict in the Middle East. Persistently high energy prices, moreover, are putting pressure on the corporate sector, particularly in Europe. According to economic analysts’ forecasts, global GDP will grow only slightly in 2025. Despite the challenging market environment, we expect our business to grow in 2025. Sales are likely to range between €6.1 billion and €6.4 billion, while EBITDA should amount to between €700 million and €900 million. The EBITDA margin is expected to be on a par with 2024. We expect sales to increase in all of our divisions, with our chemical divisions, and Silicones in particular, expected to post the strongest growth in 2025.

WACKER will continue to invest in 2025 to underpin the future growth of its divisions. Capital expenditures will be significantly below the prior-year level, but slightly above depreciation and amortization. Depreciation and amortization should total just over €500 million. Net cash flow will be positive and substantially higher than last year. We expect net debt to be stable year over year.

As of the preparation date of these financial statements, nothing had changed as regards our guidance.