BASF: Third Quarter 2025 – Earnings Above Market Expectations Despite Weak Demand

In a persistently difficult market environment, the BASF Group achieved earnings in the third quarter of 2025 that were slightly above expectations. Sales decreased by three percent compared with the prior-year quarter to €14.3 billion, while EBITDA before special items (excluding discontinued operations) at €1.4 billion was slightly below the prior-year figure of €1.5 billion. Including the discontinued Coatings business, EBITDA before special items amounted to €1.5 billion.

The decline in sales was primarily due to negative currency effects—particularly from the U.S. dollar, Renminbi, and Rupee—as well as lower prices in several segments. Volume increases in Surface Technologies, Chemicals, and Materials were able to partially offset the decline. EBIT rose to €232 million (prior year: €191 million). Net income was €172 million (prior year: €287 million), and adjusted earnings per share were €0.52 (prior year: €0.32).

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In the course of the planned divestiture, the Automotive OEM Coatings, Automotive Refinish Coatings, and Surface Technologies business units have been reported as discontinued operations in accordance with IFRS 5 since September 30, 2025. The adjusted financial figures take this change into account retroactively to January 1, 2025.

Operating cash flow decreased to €1.4 billion, and free cash flow to €398 million. This was primarily due to the change in other operating assets.

To strengthen its capital structure, BASF announced the start of a share buyback program of up to €1.5 billion beginning in November 2025. It is scheduled to be completed by June 2026 and implemented as part of the total buyback of €4 billion planned until 2028.

For the full year 2025, BASF confirms its previous macroeconomic assumptions and now expects EBITDA before special items between €6.7 billion and €7.1 billion, Free Cash Flow between €0.4 billion and €0.8 billion, and CO₂ emissions between 16.7 and 17.7 million metric tons. The adjustments reflect the exclusion of the Coatings business, which will be discontinued in the future.

More information: www.basf.com

BASF SE, Ludwigshafen

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