BASF (BAS) investor relations material

Executive summary

• 2025 was marked by significant geopolitical and market headwinds, resulting in a volatile environment and a 9% sales decline year-over-year, despite higher volumes in most segments.

• Major portfolio measures advanced, including the sale of decorative paints businesses, a strategic agreement with Carlisle/Carlyle for Coatings, and the acquisition of AgBiTech.

• The Zhanjiang Verbund site in China started up on time and below budget, with all 32 key production lines operational.

• Cost savings programs were accelerated, achieving an annual run rate of €1.7 billion by end of 2025, targeting €2.3 billion by end of 2026.

• Workforce was reduced by 4,800 and senior executives by 11% from Dec 2023 to Dec 2025.

Financial highlights

• Group sales declined to €59.7 billion in 2025, down 9% year-over-year, mainly due to currency headwinds and lower prices.

• EBITDA before special items was €6.6 billion in 2025, down from €7.2 billion in 2024.

• Net income increased by €321 million to €1.6 billion, driven by higher shareholdings and special income.

• Free cash flow rose to €1.3 billion, up from €0.7 billion in 2024.

• Equity ratio remained stable at 45.1%, and net debt was reduced to €18.3 billion.

Outlook and guidance

• No meaningful market upswing or easing of geopolitical tensions expected in the near term; 2026 is seen as another transitional year.

• 2026 EBITDA before special items forecasted at €6.2–7.0 billion; free cash flow expected at €1.5–2.3 billion.

• CapEx for 2026 planned at €3.3–3.4 billion, with a four-year CapEx plan of €13 billion, 20% lower than previous guidance.

• Gradual market recovery anticipated in late 2026 and 2027, with global GDP growth of 2.7% and chemical production growth of 2.4% assumed.

• CO2 emissions projected to rise due to new plant startups, with targeted mitigation measures.