Wacker Chemie (WCH) Q2 2024 earnings summary

Executive summary

• Q2 2024 sales declined 16% year-over-year to about EUR 1.5 billion, mainly due to lower solar-poly volumes and prices, while Chemicals and Polysilicon delivered strong results and the new mRNA facility in Halle was successfully launched.

• Group sales for H1 2024 were EUR 2.96 billion, down 15% year-over-year, with EBITDA at EUR 332 million, down 38%, and net income at EUR 83 million, down 69%.

• Capital expenditures rose 18% to EUR 294 million, focusing on capacity expansions and new production sites, including the mRNA center.

• Net cash flow was negative at EUR -305 million for H1, impacted by lower earnings and higher investments.

• Full-year guidance remains unchanged, with EBITDA expected in the upper half of the EUR 600–800 million range.

Financial highlights

• Q2 sales were EUR 1.5 billion, down 16% year-over-year; H1 sales were EUR 2.96 billion, down 15%.

• Group EBITDA was EUR 160 million in Q2 (down 37% year-over-year) and EUR 332 million for H1 (down 38%).

• Net income was EUR 35 million in Q2 (EPS EUR 0.68) and EUR 83 million for H1 (EPS EUR 1.47).

• Net debt increased to EUR 661 million from EUR 84 million at year-end 2023.

• Liquidity stood at EUR 1.1 billion, with shareholder equity at EUR 4.6 billion.

Outlook and guidance

• Full-year 2024 sales expected between EUR 6.0–6.5 billion; EBITDA forecasted at EUR 600–800 million, with margin markedly lower than last year.

• FY 2024 EBITDA now expected in the upper half of the guidance range, driven by improving Chemicals and Polysilicon.

• Net cash flow expected to remain negative and below 2023; capital expenditures to remain high.

• H2 performance expected to improve, especially in Biosolutions and Polysilicon.

• Q3 expected to be similar to Q2 across segments; H2 cash flow should improve as working capital build from H1 is not expected to repeat.