Wacker's New Playbook: Grow Faster Than GDP, Hit 15% Margins
WACKER's New Playbook: Grow Faster Than GDP, Hit 15% Margins
WACKER Chemie is resetting its long-term strategy, targeting growth above global GDP, an EBITDA margin of around 15% and return on capital employed (ROCE) above 10% as it seeks to improve competitiveness and profitability.
The German specialty chemicals producer unveiled its new REFOCUS strategy at its Capital Markets Day in London on September 17, 2026. The strategy replaces a more ambitious set of previous medium-term targets with a stronger emphasis on selective growth, portfolio management, cost reduction and capital efficiency.
WACKER Introduces REFOCUS Strategy
The company plans to achieve this through a combination of improved product mix, faster growth in selected markets and more disciplined portfolio management. WACKER is also placing greater emphasis on improving the profitability of its existing businesses.
CEO Christian Hartel said the strategy is designed to unlock WACKER's potential by selectively driving growth while sustainably increasing profitability.
The approach is built around three priorities: improving the business model and value proposition, increasing the potential of the company's structures and processes, and strengthening people and culture.
15% EBITDA Margin Becomes the New Target
One of the most significant changes is WACKER's new profitability ambition.
The company is targeting an EBITDA margin of 15%, plus or minus 2 percentage points. WACKER said this represents an increase of approximately 50% compared with its average EBITDA margin over the previous three years.
The new target is substantially different from WACKER's previous ambition of achieving chemical-division EBITDA margins above 20% by 2030.
The company had previously targeted group sales above €10 billion by 2030. That specific sales target is no longer part of the new REFOCUS framework.
Growth Above Global GDP
WACKER's new growth objective is straightforward: the Group wants to expand at a rate higher than global economic growth.
Rather than pursuing growth across every market, WACKER plans to concentrate resources on selected attractive segments where it believes it can achieve stronger returns.
Improving the product mix will also be important. The company expects higher-value products and faster-growing businesses to contribute to both sales growth and margin improvement.
This represents a shift from a primarily volume-oriented approach toward profitable growth.
PACE Program to Deliver More Than €300 Million in Savings
Cost efficiency is a major part of the REFOCUS strategy.
WACKER's PACE cost-savings and efficiency program is expected to generate more than €300 million in annual savings from 2028 onward. The program is intended to strengthen the company's cost position and offset structural pressures affecting the chemical industry.
The savings program follows a difficult period for WACKER and the broader European chemicals sector, where weak demand, high energy costs and competitive pressure have weighed on profitability.
WACKER reported 2025 sales of approximately €5.49 billion, while EBITDA declined sharply to about €427 million on a reported basis.
Portfolio Management Becomes More Selective
Another important element of REFOCUS is differentiated portfolio management.
WACKER intends to assess businesses and markets more selectively, directing capital and management attention toward areas with attractive growth and profitability potential.
This could mean greater emphasis on businesses with stronger structural demand while improving or restructuring activities that do not meet the company's profitability expectations.
The objective is to create a more focused portfolio capable of generating sustainable returns rather than relying primarily on market-wide volume growth.
Silicones and Polymers Remain Core Businesses
WACKER's Silicones and Polymers businesses remain central to the company's specialty chemicals portfolio.
Its materials serve industries including construction, automotive, electronics, healthcare, consumer products, coatings and industrial manufacturing.
The new strategy places greater emphasis on attractive markets and differentiated products, which could help WACKER capture higher-value opportunities within these established businesses.
The company is also continuing to develop its Biosolutions and semiconductor-related polysilicon activities, while facing different market conditions across each business.
Polysilicon Market Remains a Challenge
WACKER's polysilicon operations continue to face difficult conditions, particularly in the solar-grade market.
At the September Capital Markets Day, CEO Christian Hartel said the solar-grade polysilicon business remained challenging, while the chemical business was performing stably to slightly better than in the second quarter.
At the same time, WACKER expects semiconductor-grade polysilicon volumes to increase considerably in 2026.
The company has also planned investments to expand hydrogen-purification capacity for semiconductor-grade silicon at its Burghausen site.
Capital Discipline Will Support Returns
REFOCUS also puts greater emphasis on capital efficiency.
WACKER is targeting ROCE above 10%, indicating that the company wants future investments to generate stronger returns relative to the capital employed.
Capital expenditure is expected to remain disciplined. WACKER's 2026 outlook calls for approximately €300 million in capital spending, compared with €465.9 million in 2025.
The company intends to allocate capital toward areas where customer demand and long-term growth prospects justify additional capacity or technology investment.
Sustainability Target Remains in Place
Although WACKER is changing its financial ambitions, it is maintaining its sustainability direction.
The company continues to target Net Zero by 2045.
This means that the REFOCUS strategy is not simply a cost-cutting program. WACKER says the approach is designed to combine improved competitiveness with selective growth and long-term sustainability.
For a European chemicals producer operating in an energy-intensive industry, improving energy efficiency and reducing emissions remain important factors in maintaining competitiveness.
A Major Strategic Reset
The new strategy represents a significant change in WACKER's approach to long-term growth.
The company's earlier strategy had called for sales above €10 billion by 2030 and chemical-division EBITDA margins above 20%. REFOCUS instead prioritizes growth above global GDP, a group EBITDA margin of approximately 15% and ROCE above 10%.
The change reflects the tougher economic and competitive environment facing European chemical manufacturers.
High energy costs, global overcapacity, weaker demand in some markets and changing trade conditions have increased pressure on European producers.
WACKER's response is to become more selective about where it competes, where it invests and how it manages costs.
What REFOCUS Means for the Chemicals Industry
WACKER's strategy highlights a broader trend within the European specialty chemicals industry: profitable growth is becoming more important than simply increasing production volumes.
Chemical producers are increasingly looking at portfolio optimization, energy efficiency, cost control and higher-value applications as ways to protect margins.
For customers in industries such as coatings, construction, electronics, automotive and consumer products, WACKER's focus on selected growth markets could also influence future investment priorities, product development and capacity allocation.
Outlook
WACKER's REFOCUS strategy sets a new framework for the company's next phase of development.
The company aims to grow faster than global GDP while lifting profitability toward a 15% EBITDA margin and ROCE above 10%. At the same time, its PACE program is expected to deliver more than €300 million in annual savings from 2028.
The success of the strategy will depend on WACKER's ability to execute cost reductions, improve its product mix, identify attractive growth markets and navigate continued uncertainty in global chemicals and energy markets.
For now, the message from management is clear: WACKER wants less broad-based volume growth and more selective, profitable growth.
Sources:
2-Ethyl Hexanol
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