{"id":5302,"date":"2025-05-06T11:38:12","date_gmt":"2025-05-06T09:38:12","guid":{"rendered":"https:\/\/geschaeftsbericht-2024.pcc.eu\/group-management-report\/outlook-for-2025-and-beyond\/"},"modified":"2025-05-20T16:22:02","modified_gmt":"2025-05-20T14:22:02","slug":"outlook-for-2025-and-beyond","status":"publish","type":"page","link":"https:\/\/geschaeftsbericht-2024.pcc.eu\/en\/group-management-report\/outlook-for-2025-and-beyond\/","title":{"rendered":"Outlook for 2025 and beyond"},"content":{"rendered":"\t\t
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\n\t\t\t\t\t\t\t\t\tThe focus of the PCC Group in fiscal 2025 will once again be on its predominantly long-term strategy of portfolio company development. This will, as ever, include enhancing the core activities and competitiveness of the PCC Group through further capital expenditures. Green-field and brown-field projects will also be given due consideration as opportunities arise. This applies in particular with regard to the geographic expansion of core business units into new markets. The future issues of sustainability and climate protection and the associated transformation of all production processes will continue to come to the fore. This will be associated with further investments in efficient and environmentally friendly production facilities, through which the future viability of the PCC Group should be decisively strengthened. Certainly, the strategy of active investment portfolio management combined with ongoing portfolio optimization will be continued in the coming years. The primary objective remains a continuous and sustainable increase in enterprise value.
<\/br>\n\nThe business performance of the PCC Group in 2025 is also heavily dependent on future economic trends in Germany, Europe and the rest of the world. At the time of preparing this report, political representatives and various institutes and banks are predicting that economic output in Germany will grow only marginally in 2025, if at all. It should also be noted that these forecasts were made before the Bundestag (German parliament) resolution to adjust Germany\u2019s \u201cdebt brake\u201d. Possible effects of the USA\u2019s latest tariff policy have also not been taken into account. Stronger growth is expected for the European Union and the global economy as a whole. In their latest forecasts for 2025, both the Deutsche Bundesbank (Germany\u2019s central\nbank) and the Ifo Institute expect real gross domestic product (GDP) in Germany to grow by 0.2 %. The average growth rate of real GDP in the eurozone is projected to be 0.8 % in 2025. The International\nMonetary Fund (IMF) and the OECD are forecasting growth of of 2.8 % and 3.1 % respectively for the global economy in 2025. The US economy is expected to achieve growth of 2.2 % in 2025, despite mounting uncertainties. The US economy performed well in 2024 and GDP grew by 3 % or more in three of the four quarters. It should be noted, however, that all such forecasts are subject to considerable variation due to the ongoing Russia-Ukraine war and other international conflicts and political uncertainties, as well as the latest US tariff policy. Additional risks for the global economy as a whole could also arise from China\u2019s Taiwan policy. OECD forecasts put economic growth in China at 4.8 % in 2025. This would once again be too low to stimulate domestic demand in China.
<\/br>\n\nThe adjustment to the \u201cdebt brake\u201d resolved by the Bundestag in\nMarch 2025 will enable significant investments in the German economy,\ninfrastructure, defense and future technologies. It is therefore\nreasonable to expect that the forecasts mentioned above will be\nrevised upwards in the course of 2025. This should then also have a\npositive impact on the labor market.
<\/br>\n\nThe European Central Bank\u2019s (ECB) deposit rate reached its most\nrecent high of 4.00 % in September 2023 to combat inflation. Since\nJune 2024, the ECB has begun to gradually reduce the interest rate.\nAfter seven steps of 25 basis points each to date, it currently stands\nat 2.25 %. In the wake of expected investments in the EU and Germany\nfollowing the announcement of the packages of measures now\nplanned, it remains to be seen how the ECB will react.
<\/br>\n\nThe current Group planning for the years 2025 to 2027, which was prepared between September and November 2024, assumes that sales in 2025 will be 5 \u2013 10 % higher than in the previous year and should once again exceed the \u20ac 1 billion mark. This forecast is based on both higher sales volumes and higher selling prices in almost all business areas, driven by increasing utilization of existing capacities and the addition of new capacities in selected segments. In addition, the operating rate of our intermodal transport business is also expected to grow in the 2025 fiscal year thanks to additional routes and more frequent services.
<\/br>\n\nThe PCC Group is planning for earnings before interest, taxes, depreciation\nand amortization (EBITDA) before exceptional items to be\n40 \u2013 50 % higher than in 2024. The main drivers here are further loss\nreductions in the Silicon & Derivatives segment, continued growth\nin the Logistics segment and the utilization of new capacities in the\nSurfactants & Derivatives segment. Our budgeting for 2025 is based\non energy costs remaining at a level comparable to that of the\nfourth quarter of 2024. We likewise expect expenses for personnel\nand external services, among other costs, to continue to rise in fiscal\n2025, but to decrease in relation to sales, with higher volumes and\nselling prices generally assumed. With further increases in depreciation\nand amortization and high interest expenses, the PCC Group\nis planning for a loss before taxes, although this should be around\n40 \u2013 50 % lower than in fiscal 2024.
<\/br>\n\nAn increase in sales of between 10 \u2013 15 % is anticipated for the Polyols & Derivatives segment. Despite intense competition from Chinese suppliers in the area of polyether polyols and feedstocks in general, we want to continue to defend our position in the market segment for specialty polyether polyols and thus to hold on to our market share. This should lead to EBITDA at the previous year\u2019s level in the Polyols & Derivatives segment. In the Surfactants & Derivatives segment, PCC expects an increase in sales of 8 \u2013 12 % compared to the previous year. We intend to achieve this primarily through capacity utilization of the new plant at our Polish production site in P\u0142ock. In particular, it will become increasingly possible to produce small volumes with higher margins there to meet specific customer demand. The Consumer Products business managed in this segment should also see a further increase in capacity utilization in 2025 due to persistently high demand for private label products, particularly in Eastern Europe. Sales growth and a simultaneous increase in EBITDA form the basis for our budgetary planning here.
<\/br>\n\nThe Chlorine & Derivatives segment is budgeting for an increase in\nsales of 1 \u2013 5 % compared to the previous year. Due to the dependence\non economic developments, this budgetary assumption is on\nthe cautious side. The growth prospects for 2025 are similarly subdued\nin the Chlorine Downstream Products business unit as well\nas in the MCAA business unit and for phosphorus-based flame retardants.\nFor Europe, this is mainly due to the low growth forecast\nin the EU. As further price declines are anticipated in the Chlorine\nDownstream Products business unit in particular, budgeting has\nbeen based on the expectation that EBITDA will be 25 \u2013 30 % lower
than in fiscal 2024.
<\/br>\n\nIn the Silicon & Derivatives segment, budgeting for the production\nof silicon metal is based on further slight increases in volumes and\na recovery in market prices in the second half of 2025. The planning\nassumes full-capacity operation throughout the year. However, the\nshortage of electricity supply since December 2024 had not been\ntaken into account at the time the budget was drawn up. In light\nof this development, it will not be possible to meet the volume targets.\nMoreover, the planning for this segment assumes continued\naggressive cost-cutting and savings. The improvement and efficiency\nprogram initiated in December 2024 is expected to deliver initial\nresults from the second quarter of 2025. Raw material purchase prices\nare generally expected to come in lower than in the previous year.\nSome contracts were concluded in the past fiscal year and are already\ntaking effect. Contracts with price escalation clauses will take\neffect with a slight time lag. With all these measures, the segment\nis expected to achieve sales growth of 10 \u2013 15 % and an increase in\nEBITDA of 60 \u2013 80 %. This means that a loss, albeit significantly reduced,\nis still forecasted at the end of the year. In order to bring the\nSilicon Metal business unit into the profit zone long-term, the price\nlevels prevailing must be decoupled from Chinese dumping prices \u2013\nsilicon must be priced in line with the market in Europe. In fiscal\n2025, the local Icelandic company will also have to be provided with\nfurther funding from PCC SE in order to compensate for the budgeted\nlosses. Depending on market price developments, a temporary\nplant standstill cannot be ruled out.
<\/br>\n\nSales growth of 30 \u2013 50 % is anticipated for the Trading & Services\nsegment. This forecast is derived in roughly equal parts from volume-\nand price-related budgeting assumptions. In particular, the\nCommodity Trading business unit, sales activities in peripheral\nmarkets and the utility business are expected to contribute to this\ngrowth. The budget thus foresees an increase in EBITDA 20 \u2013 30 %.
<\/br>\n\nThe Logistics segment plans in fiscal 2025 to build on the very good performance of 2024. Service frequencies, capacity utilization and container handling volumes are to be continually expanded or increased. Revenue is expected to increase by between 10 % and 20 %. Efficiency gains are planned through the expansion of transport services utilizing the segment\u2019s own locomotives and platforms. Even before taking into account any positive effects arising from a peace plan in Ukraine and the associated increase in the flow of goods through Poland to Ukraine, PCC is budgeting for EBITDA growth of 30 \u2013 40 % in this segment.
<\/br>\n\nBased on a higher EBITDA of the PCC Group, pre-tax earnings should also experience an upturn. The planning assumptions are currently based on an improvement in EBT of 50 \u2013 80 %, meaning there will still be a slight loss on an annualized basis. Depreciation, amortization and interest charges remain high and will increase as a result of new investments and further borrowings to finance them.
<\/br>\n\nThe planning assumptions were prepared on the basis of the known premises from the third and early fourth quarter of fiscal 2024. Any intensification of conflicts or wars, new conflicts, political unrest or trade wars could exert a negative impact on the guidance. By contrast, peace plans, stability in German and European energy policy, clear tariff strategies and protection of European industries could have a positive impact on the aforementioned. In addition, effects from the adjustment of the \u201cdebt brake\u201d and the resulting significant investment packages have not yet been taken into account. Possible effects from the latest US tariff policy have likewise not been factored in.
<\/br>\n\nFor the following years 2026 and 2027, we expect the economic situation in Europe to recover. New investments, rising demand and new growth, for example in the construction sector, should then\nalso lead to rising volumes and prices. Sales are expected to increase by a further 30 \u2013 40 % in the following years. With lower cost increases flowing into the budgeting process, this should also lead to a sharp rise in earnings. Both EBITDA and earnings before taxes are expected to increase at rates in the high double-digit million euro range each year during this period. Depreciation and amortization charges will\ncontinue to increase as a result of the realization of further investments, with the latter contributing to additional sales and earnings potential as the years progress. PCC consistently strives to achieve the optimum mix between equity and borrowings when it comes to financing capital expenditures. For this reason, financial liabilities will also continue to increase in the budget plans for the years 2025 \u2013 2027. However, with the anticipated greater rates of increase in EBITDA, the leverage ratio should move back to our target of 5.0. A beneficial drop in this key metric has already been factored into the budget for the 2025 fiscal year.
<\/br>\n\nThe finalization and further expansion of the capacities of the chemical\nproduction facilities in Poland, the turnaround in silicon metal\nproduction and the geographic expansion of core business areas\nin the USA are the strategic cornerstones of our budget planning\ngoing forward, with continuous efficiency improvements and cost\nsavings in all business areas providing the underlying foundation.
<\/br>\n\nDuisburg, April 29, 2025
PCC SE
<\/br>\n\nThe Executive Board\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Dr. Peter Wenzel<\/p>

Riccardo Koppe

Dr. rer. oec. (BY) Alfred Pelzer <\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

The focus of the PCC Group in fiscal 2025 will once again be on its predominantly long-term strategy of portfolio company development. This will, as ever, include enhancing the core activities and competitiveness of the PCC Group through further capital expenditures. Green-field and brown-field projects will also be given due consideration as opportunities arise. This […]<\/p>\n","protected":false},"author":6,"featured_media":0,"parent":5120,"menu_order":9,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"footnotes":""},"class_list":["post-5302","page","type-page","status-publish","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/geschaeftsbericht-2024.pcc.eu\/en\/wp-json\/wp\/v2\/pages\/5302","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/geschaeftsbericht-2024.pcc.eu\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/geschaeftsbericht-2024.pcc.eu\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/geschaeftsbericht-2024.pcc.eu\/en\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/geschaeftsbericht-2024.pcc.eu\/en\/wp-json\/wp\/v2\/comments?post=5302"}],"version-history":[{"count":7,"href":"https:\/\/geschaeftsbericht-2024.pcc.eu\/en\/wp-json\/wp\/v2\/pages\/5302\/revisions"}],"predecessor-version":[{"id":5726,"href":"https:\/\/geschaeftsbericht-2024.pcc.eu\/en\/wp-json\/wp\/v2\/pages\/5302\/revisions\/5726"}],"up":[{"embeddable":true,"href":"https:\/\/geschaeftsbericht-2024.pcc.eu\/en\/wp-json\/wp\/v2\/pages\/5120"}],"wp:attachment":[{"href":"https:\/\/geschaeftsbericht-2024.pcc.eu\/en\/wp-json\/wp\/v2\/media?parent=5302"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}