Wacker Chemie Shares Rally on Future Guidance Despite Historic Loss

Investors focus on Wacker Chemie's 2026 EBITDA forecast of €550-700M, driving a 20% stock surge, despite a record €805M net loss and 1,500 job cuts in 2025.

Investors are pushing the stock of German chemical company Wacker Chemie higher, focusing on a promised recovery for 2026. This forward-looking sentiment comes even as the firm disclosed its worst annual financial performance in years, featuring a record net loss and significant job cuts.

A Deep Financial Setback in 2025

The company's full-year 2025 results revealed a profound downturn. Revenue declined by four percent to 5.49 billion euros. More strikingly, EBITDA collapsed by 43 percent to 427 million euros. This precipitous drop was primarily driven by substantial one-off charges, not just weak demand and falling selling prices. Impairments of 308 million euros on its Siltronic stake, coupled with 103 million euros in restructuring costs for the "Pace" savings program, dragged the operating result (EBIT) down to a loss of 180 million euros. This marks a severe reversal from the prior year's profit of 271 million euros. The bottom line showed a net loss of 805 million euros, leading the company to cancel its dividend and announce plans to cut 1,500 positions.

The 2026 Forecast Fuels Optimism

The catalyst for the recent share price appreciation is clearly the guidance provided for 2026. Management anticipates revenue growth in the low single-digit percentage range. More importantly, it forecasts EBITDA to land between 550 million and 700 million euros—a marked improvement over 2025. The benefits of the ongoing workforce reduction are expected to increasingly materialize throughout the year. For the first quarter alone, Wacker predicts EBITDA of 140 to 160 million euros on revenue of approximately 1.35 billion euros.

Strategically, the group intends to place greater emphasis on higher-margin specialty chemicals, semiconductor materials, and biotechnology applications. Capital expenditures will remain restrained at around 300 million euros, while net cash flow is projected to significantly exceed the previous year's level.

A Sharp Technical Rebound Unfolds

The equity has staged a notable recovery in recent trading sessions. Previously under heavy pressure due to geopolitical tensions surrounding the Iran conflict and rising oil prices, the stock initiated a strong counter-move beginning Tuesday. By Thursday's close, it was among the top performers on the MDAX index, finishing with a gain of roughly nine percent. Over the span of just three trading days, the advance totaled more than 20 percent. Shares now trade at 78.75 euros, approximately 32 percent above their 52-week low of April 8, 2025, though still nearly ten percent below the annual peak of 86.90 euros.

Company leadership has tempered expectations, stating that a fundamental turnaround in market conditions is not yet in sight, with industry overcapacity likely to persist. Whether the cautious optimism for 2026 is warranted will become clearer with the release of the first-quarter figures.