BASF (BAS) Q4 2024 earnings summary

Executive summary

• EBITDA before special items grew by 2.4% to €7,858 million in 2024, driven by strong core business performance, especially in Agricultural Solutions, with free cash flow at €748 million.

• Net income surged to €1,298 million, up €1,073 million year-over-year, despite a 5.3% decline in sales to €65.3 billion.

• Portfolio management advanced with the sale of Decorative Paints business and preparations for further divestments and IPO readiness in standalone businesses.

• Cost-saving programs achieved a €1 billion annual run rate, targeting €2.1 billion by 2026.

• Total assets grew to €80,415 million as of December 31, 2024.

Financial highlights

• Q4 2024 sales were €15.9 billion, flat year-over-year; Q4 EBITDA before special items rose 19% to €1,567 million.

• Full-year EBITDA margin before special items increased to 13.1% (up from 12.6%).

• Net income was €1.3 billion, up from €225 million in 2023, aided by a €390 million gain from the Wintershall Dea asset sale.

• Free cash flow for 2024 was €748 million, above the €100–600 million forecast.

• Net debt increased by €2.2 billion to €18.8 billion, mainly due to higher long-term debt.

Outlook and guidance

• 2025 EBITDA before special items is forecast at €8–8.4 billion, or €8.4–8.8 billion excluding Zhanjiang startup impact.

• Free cash flow guidance for 2025 is €0.4–0.8 billion, reflecting continued high CapEx for the Zhanjiang site.

• Volume growth of 3% is assumed, with margin recovery as the main variable.

• CO2 emissions expected at 16.7–17.7 million metric tons in 2025.

• Priorities include executing portfolio measures, starting up Zhanjiang, reducing costs, and maintaining CapEx discipline.