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1. Company Snapshot

1.a. Company Description

Wacker Chemie AG, together with its subsidiaries, provides chemical products worldwide.It operates through four divisions: Wacker Silicones, Wacker Polymers, Wacker Biosolutions, and Wacker Polysilicon.The Wacker Silicones division offers silanes, siloxanes, silicone fluids, silicone emulsions, silicone elastomers, silicone resins, and pyrogenic silicas for use in construction, electronics, automotive, health, and renewable energy industries.


The Wacker Polymers division provides binders and polymeric additives, such as dispersible polymer powder and vinyl acetate-ethylene dispersions, which are used in construction, paper, adhesive, paint, coating, and basic chemical industries.The Wacker Biosolutions division offers customized biotech and catalog products for fine chemicals, such as pharmaceutical proteins, vaccines, cyclodextrins, cysteine, polyvinyl acetate solid resins, and acetylacetone for pharmaceutical actives, food additives, and agrochemicals.The Wacker Polysilicon division produces hyperpure polysilicon for use in semiconductor and solar sectors.


The company was founded in 1914 and is headquartered in Munich, Germany.Wacker Chemie AG is a subsidiary of Dr. Alexander Wacker Familiengesellschaft mbH.

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1.b. Last Insights on WCH

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1.c. Company Highlights

2. Wacker Chemie AG Q3 2025: Navigating Challenging Market Conditions

Wacker Chemie AG reported sales of EUR 1.34 billion for the third quarter of 2025, with EBITDA coming in at EUR 112 million, down 18% from the previous year. The company's net income was a negative EUR 82 million, and earnings per share (EPS) was -1.73, significantly below analyst estimates of 1.36. The decline in profitability was largely due to weak demand and high competition from China, particularly in the Silicones and Polymers segments.

Publication Date: Nov -06

📋 Highlights
  • Downward Revised Full-Year Guidance:: 2025 sales expected at EUR 5.5-5.9 billion (lower end), EBITDA in EUR 500-700 million (lower half) due to weak demand and competition.
  • Q3 2025 Financial Decline:: Sales fell to EUR 1.34 billion (down 18% YoY), EBITDA EUR 112 million (down 19% YoY), and net income of -EUR 82 million.
  • Segment Performance Deterioration:: Silicones (-673M YoY), Polymers (-344M YoY), and Polysilicon (-197M YoY) all saw significant sales declines due to market pressures.
  • 2026 Cost Program Impact:: EUR 50-60 million headwind in Silicones projected, with payables reduction and EUR 400M capex target to improve working capital efficiency.
  • Strategic Focus Areas:: Shift to specialty chemicals, align polysilicon with semiconductor growth, and EUR 781M liquidity to safeguard profitability amid market volatility.

Segment Performance

The Silicones segment saw sales decline to EUR 673 million, with EBITDA at EUR 86 million, down 19% from the previous year. The Polymers segment reported sales of EUR 344 million, 6% below last year, while the Biosolutions segment saw sales of EUR 93 million, down 7% year-over-year. The Polysilicon segment's sales totaled EUR 197 million, 6% lower year-over-year, due to weak demand and lower prices for solar products.

Guidance Update and Cost Reduction Efforts

Wacker Chemie AG has updated its guidance, expecting full-year sales at the lower end of the EUR 5.5 billion to EUR 5.9 billion range and EBITDA in the lower half of the EUR 500 million to EUR 700 million range. The company is taking decisive action to reduce costs, improve capital efficiency, and free up cash tied up in working capital. As Tobias Ohler mentioned, "the group has embarked on a comprehensive cost program focusing on fixed manufacturing costs."

Valuation and Outlook

With a P/E Ratio of 19.65 and an EV/EBITDA of 7.71, the market is pricing in a certain level of recovery. However, with analysts estimating revenue growth at 3.3% for next year, it's uncertain whether this growth will be sufficient to drive profitability. The company's ROE is 3.01%, and ROIC is 1.36%, indicating some room for improvement. Wacker's dividend yield is 3.67%, providing some support to the stock. As the company navigates challenging market conditions, its efforts to reduce costs and improve efficiency will be crucial in determining its future performance.

3. NewsRoom

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Wacker Chemie Becomes Latest German Company to Cut Jobs in Ailing Labor Market

Nov -27

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US Live Biotherapeutics Market Research 2025, Competitive Analysis of Arrant Bio, 4D Pharma, Cerbios, Biose, Assembly Biosciences, Wacker Chemie, Quay Pharmaceuticals, NIZO, Lonza, Inpac Probiotics

Nov -10

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Waterproofing Chemicals Market Size | Companies Analysis 2025- 2034

Nov -03

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When Should You Buy Wacker Chemie AG (ETR:WCH)?

Oct -29

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Silicone Fluids Company Evaluation Report 2025 | Dow, Wacker Chemie, and Shin-Etsu Chemical Lead with Innovation, Capacity Expansion, and Diverse Industrial Applications

Aug -19

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Concerns Surrounding Wacker Chemie's (ETR:WCH) Performance

Aug -08

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Wacker Chemie Second Quarter 2025 Earnings: €0.49 loss per share (vs €0.48 profit in 2Q 2024)

Aug -02

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Basic Materials Roundup: Market Talk

Jun -26

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.85%)

6. Segments

Silicones

Expected Growth: 3.5%

Wacker Chemie AG's Silicones segment growth of 3.5% is driven by increasing demand for silicone-based products in construction, automotive, and electronics industries. Additionally, the company's focus on innovation and R&D, as well as its strategic expansion into emerging markets, contribute to the segment's growth.

Polysilicon

Expected Growth: 4.5%

Wacker Chemie AG's polysilicon segment growth of 4.5% is driven by increasing demand for solar panels, supported by government incentives and declining production costs. Additionally, the company's focus on high-purity polysilicon and its strong market position contribute to its growth. Furthermore, the rising adoption of renewable energy sources and the growing need for energy storage solutions also boost demand for polysilicon.

Polymers

Expected Growth: 3.8%

Wacker Chemie AG's polymer segment growth of 3.8% is driven by increasing demand for silicone-based products in construction, automotive, and electronics industries. Additionally, the company's focus on sustainable and eco-friendly products, as well as its expansion into emerging markets, contributes to the growth.

Biosolutions

Expected Growth: 4.2%

Wacker Chemie AG's Biosolutions segment growth of 4.2% is driven by increasing demand for biopharmaceuticals, vaccines, and diagnostics. The rising need for sustainable and eco-friendly production methods, coupled with advancements in biotechnology, fuels growth. Additionally, strategic partnerships and investments in research and development enable Wacker to capitalize on emerging trends in the biosolutions market.

Other

Expected Growth: 3.2%

Wacker Chemie AG's 3.2% growth in 'Other' segment is driven by increasing demand for silicones in emerging markets, particularly in the construction and automotive industries. Additionally, the company's strategic investments in digitalization and sustainability initiatives have improved operational efficiency, contributing to the segment's growth.

7. Detailed Products

Silicones

WACKER's silicones are used in a wide range of applications, including construction, automotive, electronics, and personal care.

Polymers

WACKER's polymers are used in a variety of applications, including coatings, adhesives, and construction materials.

Biosolutions

WACKER's biosolutions are used in the production of biopharmaceuticals, food, and feed.

Silane-modified Polymers (SMPs)

WACKER's SMPs are used in a variety of applications, including construction, automotive, and industrial manufacturing.

Pyrogenic Silicas

WACKER's pyrogenic silicas are used in a variety of applications, including coatings, adhesives, and construction materials.

Cysteine

WACKER's cysteine is used in the production of pharmaceuticals, food, and cosmetics.

8. Wacker Chemie AG's Porter Forces

Forces Ranking

Threat Of Substitutes

Wacker Chemie AG's products are specialized and have few substitutes, but the company is still vulnerable to changes in customer preferences and technological advancements.

Bargaining Power Of Customers

Wacker Chemie AG's customers are diverse and have limited bargaining power, as they are dependent on the company's specialized products.

Bargaining Power Of Suppliers

Wacker Chemie AG's suppliers have some bargaining power due to the company's dependence on raw materials, but the company's large scale and diversified supply chain mitigate this risk.

Threat Of New Entrants

The chemical industry has high barriers to entry, and Wacker Chemie AG's established brand and technology make it difficult for new entrants to compete.

Intensity Of Rivalry

The chemical industry is highly competitive, and Wacker Chemie AG faces intense rivalry from established players, which can lead to pricing pressure and reduced market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 22.66%
Debt Cost 10.21%
Equity Weight 77.34%
Equity Cost 10.21%
WACC 10.21%
Leverage 29.29%

11. Quality Control: Wacker Chemie AG passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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A-Score: 4.2/10

Value: 8.0

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Quality: 2.9

Yield: 7.5

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Volatility: 3.0

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A-Score: 4.1/10

Value: 4.0

Growth: 6.1

Quality: 5.1

Yield: 1.9

Momentum: 0.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

67.6$

Current Price

67.6$

Potential

-0.00%

Expected Cash-Flows