WCH.DE Stock Today, January 29: €800m Loss, 1,500 Job Cuts, Energy Pain
Wacker Chemie stock is in focus today after the group flagged a record 2025 net loss and deep cost cuts. Shares of WCH.DE trade around €68.85, down 3.97%, as investors weigh €600 million in impairments and a €300 million annual savings plan with 1,500 job cuts. Revenue fell 4% to €5.5 billion, highlighting weak demand and high power costs in Germany. We review the drivers, valuation, and what could move the name into March earnings.
Why shares fell on January 29
Wacker reported a €800 million net loss for 2025, driven by €600 million in impairments, including a large Siltronic markdown, and restructuring charges. Sales slipped 4% to €5.5 billion. The update amplified worries about earnings power in a soft market. Source: Wacker Chemie meldet Rekordverlust von 800 Millionen Euro.
Management targets €300 million in annual savings and plans 1,500 job cuts to protect margins. The move responds to weak volumes, pricing pressure, and high site costs in Germany. The plan should lower fixed costs and improve cash generation once executed, but near-term charges and uncertainty may cap appetite for risk until investors see progress.
Wacker Chemie stock trades at €68.85, down €2.85 (-3.97%). Intraday range is €67.50 to €74.70. Volume is 189,408 versus a 89,208 average, showing elevated activity. The 52-week range is €56.40 to €88.00. Market cap stands at €3.42 billion. The P/E is 156.48 on depressed EPS (€0.44), while the P/B is 0.80, reflecting a discount to book.
Germany’s chemical slump and energy costs
Germany’s chemical output sits near a 30-year low, underscoring a German chemical crisis that weighs on orders and pricing. Structural headwinds remain visible across bulk and specialties. Source: Produktion auf Dreißigjahrestief: Die Chemieindustrie ist im Krisenmodus.
Energy prices Germany are off the 2022 peak but still above pre‑2021 levels. That matters for silicones, polymers, and polysilicon, where power intensity is high. Wacker’s German sites face higher structural costs than peers in lower-cost regions. This gap pressures EBITDA margins and forces more savings, site optimization, and selective capex.
Construction weakness hits polymers and binders, while electronics and autos are mixed for silicones. Solar demand helps polysilicon but remains cyclical. These cross-currents explain lower volumes and pricing pressure. A broader European recovery, better China demand, and stable energy inputs would aid Wacker Chemie stock more than isolated cost cuts.
Valuation, balance sheet and catalysts
On current metrics, Wacker Chemie stock screens as earnings-rich but asset-cheap: P/E 156.48, P/B 0.80, EV/Sales 0.83, and EV/EBITDA 8.26. Dividend yield is 3.63% with a 5.38% payout ratio. The low P/B suggests embedded value, while the high P/E reflects depressed profits and the market’s caution on a near-term earnings rebound.
Liquidity looks solid with a 3.02 current ratio. Net debt to EBITDA is 2.17, but interest coverage is 0.86, signaling tight earnings headroom. Free cash flow per share is -13.74, driven by capex (capex/revenue 0.192). Execution on the €300 million savings plan is key to lift margins and turn free cash flow positive.
Next earnings are scheduled for 11 March 2026. Near-term drivers include savings milestones, power contracts, and demand trends in construction, autos, and solar. Technically, RSI is 57.89 with ADX 17.75 (no strong trend). CCI 167.64 implies overbought near term. ATR 2.20 and Bollinger mid €67.72 frame volatility and support levels.
Final Thoughts
Wacker Chemie stock reflects a tough setup: a €800 million loss, €600 million in write-downs, and a plan for €300 million in annual savings alongside 1,500 job cuts. The headline P/E of 156.48 looks demanding, yet a 0.80 P/B and 3.63% yield point to value if earnings normalize. We think the path forward depends on stable energy prices in Germany, better construction demand, and timely delivery of cost reductions. Watch March earnings, margin commentary, and any update on the savings plan. Our latest system view is B+/Neutral with a Hold stance, so disciplined sizing and patience make sense while we monitor catalysts and price action around €56.40 to €88.00.
FAQs
Is Wacker Chemie stock undervalued after the loss?
By book value, shares look inexpensive at a 0.80 P/B. However, a 156.48 P/E shows earnings are very weak. If margins recover and free cash flow turns positive, upside exists. Without better demand or lower costs, the discount could persist.
What are the top risks for Wacker Chemie now?
Key risks are weak European demand, elevated energy prices in Germany, slower construction, and pricing pressure in silicones and polymers. Execution risk on the €300 million savings plan and any delay in cash generation also matter. Interest coverage of 0.86 highlights limited earnings buffer.
What could improve Wacker Chemie earnings in 2026?
A demand pickup in construction and autos, more stable solar and semiconductor cycles, and lower power costs would help. Delivery of the €300 million savings plan should lift margins. Better pricing discipline and mix in specialties could support EBITDA and free cash flow.
Is the dividend safe given negative free cash flow?
The dividend yield is 3.63% with a 5.38% payout ratio on earnings, but free cash flow is negative. Payout sustainability hinges on cost savings, capex discipline, and volume recovery. If free cash flow remains weak, management could adjust distributions to protect the balance sheet.
When is the next earnings report for Wacker Chemie?
The next scheduled earnings date is 11 March 2026. Investors should watch revenue trends, margin guidance, and updates on the €300 million savings plan and 1,500 job reductions. Commentary on energy contracts and German site costs will also be important.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
