Wacker Chemie abandons 2030 growth targets in strategic pivot

Wacker Chemie has announced a strategic shift during its capital markets day in London, abandoning its previous 2030 growth targets. The company is moving away from its former goals of reaching 10 billion euros in revenue and an EBITDA margin exceeding 20 percent.

In place of these targets, CEO Christian Hartel introduced a new focus on Return on Capital Employed (ROCE), aiming for a rate of over 10 percent. The company now targets an EBITDA margin of approximately 15 percent and intends to grow at a rate slightly above the global economy. This pivot is largely attributed to the decline in polysilicon prices driven by overcapacity in China.

To support this transition, Wacker Chemie is implementing a cost-efficiency program designed to save more than 300 million euros annually by 2028. The company also plans to adjust its investment strategy, targeting annual expenditures between 300 million and 400 million euros.

Market reaction has been mixed. While the company expects stable EBITDA for the third quarter, analysts remain cautious. Jefferies maintained a 'Hold' rating with a price target of 93 euros, while J.P. Morgan maintained an 'Underweight' rating with a target of 62 euros, noting the lack of a fixed timeframe for the new objectives.