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BASF adjusts 2025 forecast downward
Due to ongoing macroeconomic uncertainties and weaker demand, BASF has revised its forecast for the full year 2025 downward. The chemical group now expects EBITDA before special items to be between 7.3 and 7.7 billion EUR instead of the previously projected 8.0 to 8.4 billion EUR.
BASF Group has released preliminary figures for the second quarter of 2025 while simultaneously adjusting its outlook for the full year 2025 downward. Sales declined by 2.1 percent to 15.77 billion EUR in the second quarter (Q2 2024: 16.11 billion EUR). This decrease resulted from negative currency effects across all segments and lower prices, particularly in the Chemicals segment.
Mixed performance across business segments
EBITDA before special items amounted to 1.77 billion EUR, in line with average analyst expectations but below the prior-year quarter figure (Q2 2024: 1.96 billion EUR). While the Agricultural Solutions, Surface Technologies, and Nutrition & Care segments achieved earnings increases, there were significant declines in the Chemicals segment and in Other.
EBIT before special items reached 0.81 billion EUR, slightly above analyst consensus but considerably below the prior-year value of 0.97 billion EUR. Net income fell to 0.08 billion EUR, significantly below analyst expectations (0.41 billion EUR) and the prior-year figure (0.43 billion EUR).
Free cash flow developed positively at 0.53 billion EUR, slightly above the prior-year value (0.47 billion EUR). This resulted from cash flows from operating activities of 1.59 billion EUR minus payments made for property, plant and equipment and intangible assets amounting to 1.05 billion EUR.
U.S. tariffs and currency effects impact annual forecast
For the full year 2025, BASF has adjusted its forecast. The company now expects EBITDA before special items to be between 7.3 and 7.7 billion EUR (previous forecast: 8.0 to 8.4 billion EUR). The group cites ongoing macroeconomic and geopolitical uncertainties leading to slower growth in the global economy and industrial production. In particular, the U.S. tariffs announced in early April and the resulting market uncertainties have led to a significant depreciation of the U.S. dollar against the euro.
The forecast for free cash flow remains unchanged at 0.4 to 0.8 billion EUR, partly due to lower expected capital expenditures.
BASF will publish its complete Half-Year Financial Report 2025 on 30 July, 2025.
