Dear Shareholders,
The chemical industry is under pressure – worldwide, but in Europe in particular. Contrary to expectation, demand in many customer sectors remained weak in 2025. A key reason here was tremendous market uncertainty. Fueled by trade conflicts and geopolitical crises, this uncertainty led to subdued ordering behavior and the postponement of investments. As a result, we produced and sold less overall in 2025.
At the same time, we have to realize that we are not just dealing with an economic dip, but with fundamental changes. New competitors are entering the market and overcapacities for many standard chemical products are typical of the current situation. This is exacerbated by structural disadvantages in Europe, such as energy prices that are still far too high and are internationally uncompetitive, and excessive regulation. This puts us at a clear disadvantage compared to our competitors in the USA and Asia.
In view of this complex situation, we, like many other chemical companies, had to adjust downwards our original 2025 targets in the course of the year. With annual sales of €5.5 billion and EBITDA of around €530 million before special effects, we met both the adjusted forecast and market expectations. Nonetheless, even if we ultimately closed 2025 in line with expectations, one thing is clear: we cannot be satisfied with that.
This is particularly true with regard to our net result for the year. Due to a series of valuation adjustments, this result was clearly negative at more than €-800 million in 2025. Owing to the negative net result and the current circumstances, the Supervisory and Executive Boards will not propose a dividend for 2025.
To get WACKER back on track for success, we launched PACE, the largest cost-cutting project in WACKER’s history, last year, with the clear aim of significantly reducing costs and strengthening our competitiveness to lasting effect. In particular, we want to use PACE to reduce our production-related and administrative costs by over €300 million per year.
We want to to save more than €300m a year
PACE will also involve a reduction in positions. More than 1,500 jobs will be reduced worldwide, most of which will be at our German sites. There is no way around the fact that we need to change if we are to remain successful on the market.
Change brings uncertainty. But above all, it offers opportunities too. The opportunity to firmly establish WACKER as one of the world’s leading chemical companies and put it back on track for profitable growth.
We have the potential for this. No question about it. Because we have answers to the big questions facing humanity. We provide solutions for renewable energy, electromobility, smart construction, healthcare, medical technology and nutrition. What is more, our products help our customers to meet their sustainability targets. They make a demonstrable contribution to reducing CO2 and conserving resources.
In order to serve these megatrends, we continued to make targeted investments in 2025. Because saving alone is not enough. We must also invest in the future, drive innovation and create the basis for new, profitable growth. One example of this is our new production line for semiconductor-grade polysilicon, which went on stream in Burghausen in 2025. The new plant not only expands our capacities, but also further increases the quality of the material. This strengthens our position as the global market and quality leader for hyperpure polysilicon – which is used in semiconductors. Polysilicon made by WACKER can already be found in every other computer chip. This market, moreover, is growing steadily.
We also see growth opportunities in the field of biotechnology. Our focus is on biotechnological solutions for the pharmaceutical and food sectors. By opening our WACKER Biotechnology Center in Munich last year, we are able to expand our research capacities and reinforce our innovative strength.
We will successfully shape the transformation that lies ahead of us. Because we not only have the right products and solutions for the future, but above all the right team.
At the same time, we are accelerating our growth in the chemical divisions. For example, we continued to drive forward our specialties strategy with the commissioning of two new production facilities for silicones in Tsukuba, Japan, and Jincheon, South Korea, in 2025. In addition, we are building a new production site in Karlovy Vary in the Czech Republic. This site will start producing room-temperature-curing high-performance silicones in 2026. Such grades play a particularly important role in electromobility and renewable energy applications. We will open the site in mid-2026.
In order to develop our potential even better, we formulated three overarching strategic priorities in spring 2025 that show us the way forward.
First, we elevate our business model and value proposition. In our chemical divisions, our focus is on specialties. In the Polysilicon division, we are concentrating on the semiconductor market. In our life sciences division, Biosolutions, the focus is on biotech solutions.
Second, we unleash the potential of our structure and processes by working on becoming faster and more efficient. In doing so, we are leveraging the opportunities that digitalization, automation and AI offer us.
Third, we excel with our people and culture. Occupational safety forms the basis for everything we do. At the same time, we are working on becoming even more diverse and further honing our focus on performance.
Our strategy and the measures we have taken will take effect and put WACKER back on the road to success. In its more than 100-year history, WACKER has repeatedly proven that it can successfully adapt to new circumstances. That is why I am confident that we will also successfully shape the transformation that lies ahead of us. Because we not only have the right products and solutions for the future, but above all the right team to master the challenges. On behalf of the entire Executive Board, I would therefore like to thank our employees worldwide for their dedication and commitment in these turbulent times.
Circumstances will remain challenging in 2026. It is therefore all the more important that we now continue to consistently pursue the path we have taken. After all, the market waits for no one. Speed is increasingly becoming a key differentiating factor. That’s why all our measures involve maximum speed. 2026 will be a year of implementation – embodied by spirit, speed and confidence.
On behalf of the entire Executive Board team, I would like to thank you for your trust in WACKER.
Dr. Christian Hartel
President & CEO of Wacker Chemie AG