BASF (BAS) Q2 2025 (Media) earnings summary

Executive summary

• EBITDA before special items for H1 2025 was €4.4 billion, down 5.8% year-over-year, with strong performance in Agricultural Solutions and Surface Technologies partially offsetting declines in Chemicals and other segments.

• Sales for H1 2025 declined 1.5% year-over-year to €33.2 billion, with volume growth in Agricultural Solutions and Surface Technologies, but price declines in four of six segments, especially Chemicals.

• Net income fell to €887 million, halved year-over-year, with significant declines in shareholdings due to negative contributions from Harbour Energy and Wintershall Dea.

• Free cash flow for H1 2025 was negative at -€1.3 billion, deteriorating from -€1.0 billion in H1 2024, impacted by lower net income and higher working capital outflows.

• The business environment was challenging, particularly for upstream and Base Chemicals, due to high product availability and customer caution globally.

Financial highlights

• H1 2025 sales: €33,171 million (down 1.5% year-over-year); EBITDA before special items: €4,397 million (down 5.8%); EBIT before special items: €2,500 million (down from €2,700 million year-over-year); EBIT: €1,690 million (down 23.4%).

• Net income: €887 million (down 50.6%); EPS: €0.99 (down 50.6%); adjusted EPS: €2.06 (down 21.0%).

• Free cash flow: -€1,266 million (down from -€986 million); net debt: €21,281 million (up €2,501 million from year-end 2024).

• Q2 2025 EBITDA before special items was €1.8 billion, down from €2 billion year-over-year.

• CapEx peaked in 2024; payments for property, plant, and equipment in 2025 expected to be €200 million lower than forecasted.

Outlook and guidance

• Full-year 2025 EBITDA before special items is now expected between €7.3–€7.7 billion, reflecting ongoing margin pressure and macroeconomic/geopolitical uncertainty.

• Free cash flow guidance remains €0.4–€0.8 billion, supported by lower CapEx.

• Global GDP growth for 2025 now expected at 2.0–2.5%; industrial production at 1.8–2.3%; chemical production at 2.5–3.0%.

• Focus areas for 2025 include portfolio measures, starting up the new Verbund site in China, structural cost reduction, and cultural initiatives.

• Margins, especially in upstream businesses, remain under pressure due to high product availability.