BASF lowers forecast after mixed second quarter 2025

In Q2 2025, BASF reported sales of EUR 15.8 billion, slightly below the prior-year figure. A 21 % increase in volumes in Agricultural Solutions helped offset weaker prices in other segments. Negative currency effects also weighed on revenue. While Surface Technologies and Nutrition & Care were able to raise prices, the Chemicals segment faced significant price declines due to high product availability.

EBITDA before special items amounted to EUR 1.8 billion, down EUR 185 million year-on-year. The sharpest decline was in Chemicals, while Agricultural Solutions, Surface Technologies and Nutrition & Care posted modest improvements. The EBITDA margin before special items stood at 11.2 %, compared with 12.1 % in Q2 2024.

Cash flow and half-year performance

Operating cash flow in the second quarter was EUR 1.6 billion, EUR 365 million below the prior-year figure. Capital expenditures for property, plant and equipment and intangible assets decreased by EUR 428 million to EUR 1.1 billion. Free cash flow improved to EUR 533 million.

In the first half of 2025, BASF recorded sales of EUR 33.2 billion (down EUR 493 million year-on-year). EBITDA before special items declined to EUR 4.4 billion. EBIT fell to EUR 1.7 billion, while net income after non-controlling interests dropped to EUR 887 million.

Outlook 2025

Due to weaker global economic growth and geopolitical uncertainties, BASF now expects EBITDA before special items of between EUR 7.3 billion and EUR 7.7 billion for 2025 (previously EUR 8.0 billion to EUR 8.4 billion). Free cash flow is projected between EUR 0.4 billion and EUR 0.8 billion.

CO₂ emissions are forecast in the range of 16.7 to 17.7 million tonnes. While direct impacts from trade tariffs remain limited due to BASF’s regional production strategy, indirect effects—such as increased competition and inflation—may affect demand and pricing.

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