BASF: Sales and Earnings Increase in Third Quarter of 2026 – Full-Year Outlook Raised

Chemical company BASF increased its sales by 14 percent year-on-year to €16.4 billion in the third quarter of 2026 (Q3 2025: €14.3 billion). The increase was primarily driven by selling price increases of 12 percent and 2 percent growth in sales volumes. Positive currency effects, particularly from the US dollar and the Chinese renminbi, also supported sales growth.

EBITDA before special items increased by €213 million, or 15 percent, to €1.6 billion. The EBITDA margin before special items remained at the prior-year level of 10.0 percent. EBITDA including special items amounted to €1.2 billion, also in line with the prior-year quarter.

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Mixed Performance Across Business Segments
The increase in EBITDA before special items was primarily driven by the Chemicals, Materials, Industrial Solutions and Nutrition & Care segments. Their positive contributions more than offset declining earnings in Agricultural Solutions and Surface Technologies.

Significant selling price increases were recorded in Chemicals, Materials, Surface Technologies and Industrial Solutions. Sales volumes increased particularly in Chemicals and Nutrition & Care, while Agricultural Solutions recorded a substantial decline in sales volumes.

Restructuring Expenses and Impairment Charges Weigh on EBIT
EBITDA was negatively affected by special items totaling €437 million. These primarily related to restructuring expenses at the Ludwigshafen site and a settlement to resolve a legal dispute in the Care Chemicals business.

EBIT declined from €232 million in the prior-year quarter to negative €98 million. Depreciation and amortization increased to €1.3 billion (prior-year quarter: €976 million), including an impairment charge of €318 million in the Monomers business.

Net income after taxes and non-controlling interests decreased from €172 million to €155 million. Earnings per share amounted to €0.18, compared with €0.19 in the prior-year quarter. Adjusted earnings per share, excluding special items and amortization of intangible assets, increased from €0.52 to €0.72.

Free Cash Flow Increases Despite Higher Working Capital Requirements
Cash flow from operating activities decreased by €275 million to €1.1 billion. The main reason was a €507 million increase in cash tied up in inventories, primarily due to higher raw material prices.

Cash flow from investing activities improved from negative €767 million to negative €89 million. This improvement was supported by proceeds of €434 million from the sale of shares in Harbour Energy and a €401 million reduction in capital expenditure on property, plant and equipment and intangible assets. The latter was partly attributable to lower capital expenditure at the Zhanjiang Verbund site in China.

Free cash flow increased by €125 million to €523 million.

Full-Year Earnings Outlook for 2026 Raised
BASF now expects EBITDA before special items of €7.4 billion to €7.8 billion for the full year 2026, compared with its previous forecast of €6.9 billion to €7.7 billion.

The free cash flow forecast remains unchanged at €1.5 billion to €2.3 billion. The forecast for CO₂ emissions also remains unchanged at 17.2 million to 18.2 million metric tons.

BASF continues to base its planning on gross domestic product (GDP) growth of 2.5 percent, industrial production growth of 2.0 percent and chemical production growth of 1.8 percent. Additional assumptions include an average exchange rate of US$1.17 per euro and a Brent crude oil price of US$80 per barrel.

BASF continues to highlight ongoing geopolitical and economic uncertainties.

More information: basf.com, www.harbourenergy.com

BASF SE, Ludwigshafen, Germany

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