(6) Revenue
Revenue for the 2025 fiscal year amounted to € 923.6 million (previous year: € 960.0 million). This includes € 1.1 million (previous year: € 1.6 million) in revenue arising from contract liabilities existing at the beginning of the reporting period. Revenue comprised € 765.8 million from the sale of goods and € 157.8 million from the provision of services, with the provision of services primarily relating to transportation.
The majority of revenue from the sale of goods relates to the manufacture and distribution of chemical products; these sale proceeds are primarily recognized at the time of the transaction. In total, revenue recognized on a transaction basis amounted to € 894.5 million, and revenue recognized on an accrual basis amounted to € 29.1 million. Consolidated revenue is distributed across various geographic markets within the reporting segments. For further details, please refer to the segment report in Note (17).
The majority of revenue from the sale of goods relates to the manufacture and distribution of chemical products; these sale proceeds are primarily recognized at the time of the transaction. In total, revenue recognized on a transaction basis amounted to € 894.5 million, and revenue recognized on an accrual basis amounted to € 29.1 million. Consolidated revenue is distributed across various geographic markets within the reporting segments. For further details, please refer to the segment report in Note (17).
(7) Purchased goods and services
The cost of purchased goods and services decreased by € 50.2 million compared to the previous year to € 624.3 million. This was primarily due to lower purchase prices for key raw materials. Procurement costs for energy and logistics remained virtually unchanged from the previous year.
download excel(8) Other internal costs capitalized
The total of other internal costs capitalized essentially derives from manufacturing costs in respect of work or assets capitalized, with any material intercompany profits eliminated. This item increased from € 23.4 million in the prior year to € 29.6 million in fiscal 2025.
(9) Personnel expenses
Personnel expenses increased from € 150.7 million in the prior year to € 152.7 million. Thus, another increase in personnel expenses was recorded in fiscal 2025. Wage and salary increases continued to rise disproportionately due to high inflationary pressure.
As of December 31, 2025, the PCC Group employed a total of 3,115 people (previous year: 3,295). On average for 2025, the PCC Group employed 3,225 people (previous year: 3,289). The majority of the decline in headcount was attributable to the Silicon & Derivatives segment. Due to the difficult market situation, silicon metal production in Iceland has been temporarily suspended since July 2025. Consequently, the number of employees was also reduced. The distribution of employees by Group segment as of the reporting date is as follows:
Geographically, the number of employees as at the balance sheet date was distributed as follows:
(10) Other operating income
Other operating income decreased only slightly, from € 45.0 million in the prior year by € 1.8 million to € 43.3 million in the past fiscal year. As in the previous year, income from compensation payments in connection with CO2 certificates represents the largest single item. These payments are granted by the Polish state as compensation for price increases in CO2 certificates.
As in the previous year, sundry other operating income comprises various items that are not individually material.
As in the previous year, sundry other operating income comprises various items that are not individually material.
(11) Other operating expenses
Other operating expenses increased by € 13.4 million from € 113.6 million in the prior year to € 127.0 million in the past fiscal year. As in the previous year, maintenance and repair expenses constituted the largest single item. These expenses were mainly attributable to the asset-intensive business activities of the chemicals sites.
As was the case in fiscal 2024, expenses attributable to non-consolidated affiliated companies represent the second largest single item within other operating expenses and include expenses for quality assurance, laboratory and administrative services.
The other taxes item includes all tax expenses that are not taxes on income. Domestic German and foreign taxes on income and deferred taxes are reported separately in the tax result and explained in Note (16).
As in the previous year, sundry other operating expenses comprise various items that are not individually material.
Research and development expenses amounted to € 9.7 million in the current reporting period (previous year: € 8.8 million). In addition, expenditures for internally developed intangible assets and property, plant and equipment totaling € 3.3 million were capitalized (previous year: € 1.1 million).
As was the case in fiscal 2024, expenses attributable to non-consolidated affiliated companies represent the second largest single item within other operating expenses and include expenses for quality assurance, laboratory and administrative services.
The other taxes item includes all tax expenses that are not taxes on income. Domestic German and foreign taxes on income and deferred taxes are reported separately in the tax result and explained in Note (16).
As in the previous year, sundry other operating expenses comprise various items that are not individually material.
Research and development expenses amounted to € 9.7 million in the current reporting period (previous year: € 8.8 million). In addition, expenditures for internally developed intangible assets and property, plant and equipment totaling € 3.3 million were capitalized (previous year: € 1.1 million).
(12) Result from investments accounted for using the equity method
Due to loss allocations that exceeded the equity value of both OOO DME Aerosol, Pervomaysky (Russia), and PCG PCC Oxyalkylates Sdn. Bhd., Kuala Lumpur (Malaysia), the equity values for these two companies are each reported as zero. The losses are carried forward in a separate ledger and initially offset against future profits before a positive share of earnings is reported in the consolidated statement of income. The proportionate net income for the year of OOO DME Aerosol amounted to € 1.8 million (previous year: € – 0.7 million). As of December 31, 2025, accumulated losses decreased to € 6.3 million (previous year: € 8.1 million). The proportionate net income for the year of PCG PCC Oxyalkylates Sdn. Bhd. amounts to € – 9.4 million (previous year: € 2.3 million). As of December 31, 2025, losses amounted to € 7.1 million.
The equity value of IRPC Polyol Company Ltd., Bangkok (Thailand), was primarily adjusted in the reporting year by the company’s positive proportionate net income for the year and amounts to € 2.5 million as of the reporting date (previous year: € 2.6 million). The other changes relate to currency translation effects.
PCC SE has issued the financing bank of PCG PCC Oxyalkylates Sdn. Bhd. with a guarantee. At the time of preparation of these consolidated financial statements, utilization of this guarantee is not anticipated.
The equity value of IRPC Polyol Company Ltd., Bangkok (Thailand), was primarily adjusted in the reporting year by the company’s positive proportionate net income for the year and amounts to € 2.5 million as of the reporting date (previous year: € 2.6 million). The other changes relate to currency translation effects.
PCC SE has issued the financing bank of PCG PCC Oxyalkylates Sdn. Bhd. with a guarantee. At the time of preparation of these consolidated financial statements, utilization of this guarantee is not anticipated.
(13) Depreciation and amortization
Depreciation and amortization increased by € 113.7 million from € 86.1 million in the prior year to € 199.7 million in the past fiscal year. Amortization of intangible non-current assets related to industrial property rights and similar rights and also internally generated and developed intangible assets. No impairment losses were recognized on goodwill either in the reporting period or in the previous year. Further information on goodwill can be found in Note (19).
In fiscal 2025, impairment losses on intangible assets, property, plant and equipment, and right-of-use assets totaling € 116.2 million were recognized (previous year: € 2.2 million).
The current market and pricing conditions in the Silicon & Derivatives segment, combined with conservative projections of expected cash flows, resulted in an impairment charge of € 105.6 million for the silicon metal plant in the 2025 consolidated financial statements. In addition, the plant for the production of monochlorobenzene (MCB) in the Chlorine & Derivatives segment, which is being closed both for economic reasons and to optimize the portfolio, was written down by an impairment charge of € 4.5 million.
In fiscal 2025, impairment losses on intangible assets, property, plant and equipment, and right-of-use assets totaling € 116.2 million were recognized (previous year: € 2.2 million).
The current market and pricing conditions in the Silicon & Derivatives segment, combined with conservative projections of expected cash flows, resulted in an impairment charge of € 105.6 million for the silicon metal plant in the 2025 consolidated financial statements. In addition, the plant for the production of monochlorobenzene (MCB) in the Chlorine & Derivatives segment, which is being closed both for economic reasons and to optimize the portfolio, was written down by an impairment charge of € 4.5 million.
(14) Net interest result
Net interest expense increased from € – 45.7 million in the prior year to € – 46.6 million in the past fiscal year. As in the prior year, the largest single item was interest expense on bonds. The largest absolute increase compared to the prior year was also recorded in interest expense on bonds. This results both from a bigger portfolio of bond liabilities and from a generally higher interest rate environment. Both the parent company of the PCC Group and several subsidiaries issue bonds to finance investments and to refinance maturing liabilities. Note (32) provides a detailed presentation of bond liabilities and their maturities.
Interest attributable to investment projects that constitute a qualifying asset is capitalized during their construction period in accordance with IAS 23. In the past fiscal year, interest expenses in the amount of € 3.4 million were capitalized in this way (previous year: € 2.0 million). The cost of financing was 7.0 % (also 7.0 % in the previous year). The weighted average interest rate on all interest-bearing liabilities was 4.9 % in the past fiscal year (previous year: 5.1 %).
Interest attributable to investment projects that constitute a qualifying asset is capitalized during their construction period in accordance with IAS 23. In the past fiscal year, interest expenses in the amount of € 3.4 million were capitalized in this way (previous year: € 2.0 million). The cost of financing was 7.0 % (also 7.0 % in the previous year). The weighted average interest rate on all interest-bearing liabilities was 4.9 % in the past fiscal year (previous year: 5.1 %).
(15) Foreign currency translation result
Gains and losses from currency translation are reported under financial result. While gains from currency translation decreased from € 81.5 million in the prior year to € 54.5 million in the reporting year, losses from currency translation increased year on year from € 66.0 million to € 76.6 million. Netted, these figures yield a negative result from currency translation of € – 22.1 million. The result for the prior year had been positive at € 15.5 million. Key factors influencing the result from currency translation are exchange rate movements of the currencies relevant to the PCC Group, primarily the Polish złoty and the US dollar.
(16) Taxes on income / Tax expense
Taxes on income include income taxes paid or owed in the individual countries, as well as deferred taxes recognized through profit or loss. Taxes on income consist of trade tax and corporate income tax, the solidarity surcharge, and the corresponding foreign taxes on income. Other taxes include property taxes, wealth taxes, and other comparable types of taxes. They are classified under other operating expenses.
Taxes on income are primarily attributable to the Silicon & Derivatives segment (€ 5.4 million) and the Trading & Services segment (€ 2.7 million). From a regional perspective, € 5.3 million is attributable to Poland, € 5.3 million to Other Europe, and € 0.5 million to Germany.
Taxes on income are primarily attributable to the Silicon & Derivatives segment (€ 5.4 million) and the Trading & Services segment (€ 2.7 million). From a regional perspective, € 5.3 million is attributable to Poland, € 5.3 million to Other Europe, and € 0.5 million to Germany.
The relationship between the actual tax expense or income and the expected tax expense or income based on consolidated net income is shown in the adjacent table; for the first time in the reporting year, the tax reconciliation is based on the tax effects on the taxable base amounts. In the previous year, the reconciliation was performed using the tax bases, so the prior-year column in the current table is not identical to the prior-year presentation. The expected tax expense or income is based on PCC SE’s actual income tax rate of 33.2 %. In the previous year, a simplified income tax rate of 30 % was applied. The PCC Group’s effective tax rate was –6.2 % in the reporting year (previous year: – 62.8 %).
The BEPS Pillar Two regulations were transposed into German law at the end of 2023 (MinStG) and entered into force on January 1, 2024. The PCC Group falls within the scope of these regulations. As of the reporting date, it conducted an analysis to determine the extent of its exposure and the jurisdictions from which the Group may be subject to potential impacts related to a Pillar Two minimum tax, both domestically in Germany and abroad, as a national supplementary tax. The analysis first examined whether the Transitional CbCR Safe Harbor rules apply. This analysis revealed that no tax burden from either primary top-up taxes or national top-up taxes is currently expected for 2025. Accordingly, no provision was recognized for any jurisdiction.
Tax-deductible loss carryforwards exist in individual Group companies. The adjacent table shows the time periods during which tax loss carryforwards for which deferred taxes were recognized can be utilized. The tax loss carryforwards for which deferred taxes were recognized decreased by € 123.0 million compared to the previous year, to just € 16.3 million as of December 31, 2025. The decline is primarily due to uncertainties regarding the future usability of tax loss carryforwards from silicon metal production in Iceland. Against the backdrop of challenging market conditions in the Silicon & Derivatives segment, the decision was made not to continue recognizing deferred taxes on said loss carryforwards.
Tax loss carryforwards for which no deferred taxes have been recognized amount to € 592.1 million (previous year: € 317.4 million) and arose primarily at the Group holding company and in relation to the silicon metal production operations in Iceland.
Tax-deductible loss carryforwards exist in individual Group companies. The adjacent table shows the time periods during which tax loss carryforwards for which deferred taxes were recognized can be utilized. The tax loss carryforwards for which deferred taxes were recognized decreased by € 123.0 million compared to the previous year, to just € 16.3 million as of December 31, 2025. The decline is primarily due to uncertainties regarding the future usability of tax loss carryforwards from silicon metal production in Iceland. Against the backdrop of challenging market conditions in the Silicon & Derivatives segment, the decision was made not to continue recognizing deferred taxes on said loss carryforwards.
Tax loss carryforwards for which no deferred taxes have been recognized amount to € 592.1 million (previous year: € 317.4 million) and arose primarily at the Group holding company and in relation to the silicon metal production operations in Iceland.
