BASF (BAS) Q3 2025 earnings summary

Executive summary

• Q3 2025 sales declined 3.2% year-over-year to €15,230 million, mainly due to currency headwinds and lower prices, despite volume growth in key segments.

• EBITDA before special items was €1,544 million, slightly below the prior year, reflecting resilience amid challenging market and currency conditions.

• Net income fell 39.9% to €172 million, with earnings per share dropping to €0.19 from €0.32 in Q3 2024.

• Major portfolio actions included the announced sale of the coatings business to Carlyle, and completed divestitures in decorative paints and food & health performance ingredients.

• Adjusted earnings per share rose to €0.52, up 62.5% year-over-year, reflecting adjustments for special items and amortization.

Financial highlights

• Q3 2025 sales were €15,230 million, down 3.2% from Q3 2024; EBITDA before special items was €1,544 million, down 4.8%.

• For Q1–Q3 2025, EBITDA before special items was €5,941 million, slightly lower year-over-year; EBIT before special items was €3,100 million versus €3,400 million.

• Net income for Q3 2025 was €172 million, a 39.9% decrease year-over-year.

• Free cash flow in Q3 2025 was €398 million, compared to €569 million in Q3 2024; for the first nine months, it was minus €868 million.

• Net debt increased to €20.9 billion as of September 30, 2025.

Outlook and guidance

• 2025 EBITDA before special items guidance adjusted to €6.7–7.1 billion, reflecting portfolio changes and the Zhanjiang Verbund site startup.

• Free cash flow guidance for 2025 is €0.4–0.8 billion; CO₂ emissions target unchanged at 16.7–17.7 million metric tons.

• Management expects Q4 2025 to follow Q3 trends with normal seasonality and no major macro changes anticipated.

• Underlying macro assumptions remain unchanged, including GDP and industrial production growth.

• Risks include potential for further price declines, rising feedstock costs, and lower-than-expected volume growth.