German chemicals maker Wacker Chemie reported disappointing fourth-quarter earnings, missing analyst expectations. Adjusted EBITDA fell 35% to €185 million. The company is responding with a €300 million cost-cutting program, dubbed PACE, targeting labor productivity, procurement, and maintenance. The news comes amid challenges in key markets like silicones and polysilicon, impacting investor confidence.

Wacker's silicones division, its largest by revenue, saw a 42% drop in EBITDA, primarily due to weak order intake and low factory utilization. While a slight improvement in Chinese demand was seen towards the end of the quarter, overall sales declined. The biosolutions unit also struggled, while polysilicon margins were under pressure despite rising sales volumes.

The cost-cutting program will involve reducing approximately 1,500 jobs by the end of 2027. Analysts at Jefferies expect share price pressure following the results. This move reflects the current economic headwinds affecting the chemical industry, including fluctuating raw material prices and uneven global demand, especially in areas like solar panel manufacturing.

Investors will be watching the company's progress on its cost-cutting measures and any potential shifts in demand. The lack of 2026 guidance adds to the uncertainty. The performance of Wacker’s key divisions, particularly silicones and polysilicon, will be crucial in determining the company's future trajectory and investor sentiment.