Wacker Chemie: Savings program and share price development

A look at the price trend of Wacker Chemie's shares almost resembles a fever curve on the state of the chemical industry. Although the Bavarian specialty chemicals company's share price has increased by more than a quarter this year, in May 2022 the price was twice as high at almost 180 euros. Things have gone downhill since then, and the board has responded with an extensive savings program to counteract the weak demand. 1,600 jobs will be lost, almost one in ten jobs will be cut.

The board led by chairman Christian Hartel wants to save 300 million euros by 2028. This year it could be 200 million euros. And the shareholders can even expect a positive result again after the record loss in 2025 of a good 800 million euros. There is no question that Wacker Chemie has regained its footing, which can be seen in the increase in the share price so far this year. Nevertheless, the board remains cautious.

This is right because it means lessons are learned from the disappointments of the past few years. Analysts may complain that the new financial targets, such as a significantly higher return, were set without a specific timetable. But the uncertainties are currently too great for that given the geopolitical risks and the difficult to assess US customs policy. In the chemical industry, caution is still advised – rather than arrogance.