BASF (BAS) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales were €17.4 billion, down 0.9% year-over-year, with EBITDA before special items at €2,625 million, a 3.2% decrease.

• Net income declined 40.9% to €808 million, and earnings per share dropped to €0.91 from €1.53 in Q1 2024.

• Free cash flow was negative at -€1.8 billion, impacted by AFFF settlement and precious metals trading build-up.

• Significant volume declines in North America (-9%), while Asia-Pacific and Europe saw growth; indirect impacts from tariffs and market uncertainty affected demand.

• BASF maintained a strong balance sheet and single-A credit ratings with a stable outlook.

Financial highlights

• EBITDA before special items: €2,625 million (-3.2% year-over-year); EBIT before special items: €1,664 million (-5.1%).

• Net income: €808 million, down €560 million from Q1 2024.

• Operating cash flow: -€982 million, down €468 million year-over-year.

• Adjusted EBITDA margin before special items: 15.1%, slightly down from 15.4% year-over-year.

• Net debt increased by €1.6 billion to €20.4 billion compared to December 2024.

Outlook and guidance

• 2025 guidance unchanged: EBITDA before special items €8.0–8.4 billion, free cash flow €0.4–0.8 billion.

• Zhanjiang Verbund site startup expected to reduce 2025 EBITDA by ~€0.4 billion and free cash flow by ~€0.8 billion.

• Global economic assumptions: GDP growth +2.6%, chemical production +3.0%, EUR/USD at 1.05, Brent crude at $75/bbl.

• High uncertainty due to U.S. tariff policy and potential retaliatory measures; direct impact limited by local production.

• Guidance will be reassessed after Q2 as volatility persists.