Wacker Silicones posts higher sales, earnings on cost savings

Munich, Germany – Wacker Chemie's Silicones division has reported higher sales and earnings in the second quarter, supported by lower operating costs, an improved product mix and higher selling prices.

Sales rose 6% year-on-year to €757 million in the three months ended 30 June, up from €713 million a year earlier, Wacker reported 30 July.

Division earnings (EBITDA) increased 18% to €123 million, compared with €104 million in the second quarter of 2025.

According to Wacker, earnings benefited primarily from lower operating expenses driven by its PACE cost-savings and efficiency programme (ERJ report), as well as a favourable product mix and, to some extent, higher selling prices.

At group level, Wacker reported 7% higher second quarter sales of €1.5 billion, up from €1.4 billion a year earlier and 8% above the €1.4 billion recorded in the first quarter.

Group earnings increased 85% year-on-year to €211 million, from €114 million, and was 22% higher sequentially.

The German supplier linked the gains to savings generated by the PACE programme, launched in October 2025, as well as €36.7 million in non-operating income related to a revaluation of pension provisions.

Commenting on the results, CEO Christian Hartel said: "Given the persistently weak market conditions and the challenges facing the chemical industry, Wacker performed well in the second quarter.”

The group’s “significantly higher” earnings were, in part, driven by “strong operating performance, and in part to the fact that our PACE cost-savings and efficiency program is having an impact," he said.

Despite the stronger quarter, Hartel said market conditions remained challenging, with demand from the automotive and construction sectors still weak.

"On the demand side, we don't currently see any sign of a turnaround," Hartel said, adding that tensions in the Middle East had created further uncertainty through higher energy and raw material costs and supply chain disruptions.

Wacker said it responded to the situation by increasing silicones and polymers prices during the second quarter.

Furthermore, the CEO warned that competition, particularly from Asia, continued to intensify amid significant industry overcapacity.