July 29, 2026

BASF strengthens its position in the market and achieves major progress on restructuring and portfolio measures

Earnings rise compared with prior-year quarter in nearly all segments
Outlook raised for full year 2026: EBITDA before special items of between €6.9 billion and €7.7 billion expected

BASF was able to increase earnings in nearly all segments in the second quarter of 2026. Stronger prices and higher volumes contributed to this rise. “We further strengthened BASF’s position in the market and achieved major progress with our restructuring as well as portfolio measures,” said BASF CEO Dr. Markus Kamieth when presenting the company’s half-year results, together with CFO Dr. Dirk Elvermann. On July 15, 2026, BASF had already pre-released preliminary figures for the second quarter of 2026 because EBITDA before special items of €2.4 billion significantly exceeded average analysts’ expectations. BASF raised its earnings outlook for the full year 2026.

BASF Group’s business development in second quarter 2026
BASF Group’s sales in the second quarter of 2026 amounted to €17.2 billion, €2.4 billion above the level of the prior-year period. This was largely attributable to considerably higher prices (plus 11.5 percent) and volume growth (plus 7.3 percent). The price increase was driven by the Chemicals, Surface Technologies, Materials and Industrial Solutions segments, while prices in the Agricultural Solutions and Nutrition & Care segments declined. Volumes increased in nearly all segments, with the exception of Surface Technologies, which recorded a slight decline in sales volumes. Currency effects had a dampening impact on sales in all segments.

Income from operations before depreciation, amortization and special items (EBITDA before special items) improved by €854 million compared with the prior-year quarter to €2.4 billion. The main driver here was the significant earnings increase in the Materials, Chemicals and Industrial Solutions segments, primarily as a result of improved contribution margins. The Agricultural Solutions and Nutrition & Care segments recorded slight earnings increases. In the Surface Technologies segment, earnings were down significantly due to higher fixed costs. EBITDA before special items in Other grew considerably compared with the value in the prior-year quarter.
EBITDA increased to €2.0 billion, compared with €1.3 billion in the prior-year period. EBITDA included special items in the amount of minus €484 million in the second quarter of 2026. Special charges were incurred mainly in relation to restructuring measures, particularly the cost savings program being driven forward at the Ludwigshafen site, as well as the implementation of new ERP systems.

At €937 million, EBIT was up by €542 million over the level of the prior-year quarter. Income before income taxes amounted to €780 million, up by €560 million versus the figure of the prior-year quarter.

Income after taxes increased significantly to €4.2 billion, compared with €108 million in the prior-year period. This contained a disposal gain after taxes of €3.5 billion from the sale of the Coatings business to Carlyle. Net income was €4.1 billion, compared with €79 million in the prior-year quarter.

Cash flows from operating activities totaled €524 million in the second quarter, €1.1 billion below the level of the prior-year quarter. This decrease was largely attributable to the higher amount of cash tied up in working capital, which resulted in part because cash tied up in inventories increased by €654 million owing to higher raw material prices. In addition, there was a negative impact of €843 million on cash flow because cash was tied up in trade accounts receivable, as opposed to a cash release in the prior-year quarter. Cash flows from investing activities in the second quarter of 2026 amounted to €5.5 billion, compared with minus €1.1 billion in the prior-year period. The increase was largely attributable to the net cash inflow of €5.6 billion from the purchase price payment less disposed cash in connection with the sale of the Coatings business. In addition, payments of €522 million were received from the sale of shares in Harbour Energy in the second quarter of 2026. Payments made for intangible assets and property, plant and equipment decreased by €340 million, mainly in relation to the Verbund site in Zhanjiang. Free cash flow amounted to minus €189 million in the second quarter of 2026, down by €721 million compared with the level of the prior-year period.

BASF Group’s business development in the first half of 2026
Compared with the first half of 2025, BASF Group’s sales rose by €1.9 billion to €33.2 billion, in particular as a result of positive volume and price effects. Volumes increased by 5.7 percent compared with the prior-year period, while prices were up by 4.8 percent. Currency effects had a dampening impact on sales in all segments.
The BASF Group’s EBITDA before special items improved in the first half of 2026 by €715 million to €4.8 billion. This was primarily attributable to significantly higher earnings in the Materials, Industrial Solutions, Chemicals and Surface Technologies segments. EBITDA improved to €4.2 billion, compared with €3.4 billion in the prior-year period.

At €2.2 billion, EBIT was up by €644 million from the level of the prior-year period. Income before income taxes in the first half of 2026 increased by €645 million compared with the prior-year period to €1.9 billion.
Income after taxes increased significantly to €5.1 billion, compared with €945 million in the prior-year period. This contained a disposal gain after taxes of €3.5 billion from the divestiture of the Coatings business to Carlyle. Net income was €5.1 billion, compared with €887 million in the prior-year period.

Cash flows from operating activities amounted to minus €273 million in the first half of 2026, €876 million below the prior-year period’s figure. Cash flows from investing activities amounted to €5.1 billion in the first half of 2026, compared with minus €1.8 billion in the prior-year period. The increase was largely attributable to the €5.6 billion purchase price payment less disposed cash in connection with the sale of the Coatings business. Payments received from the sale of shares in Harbour Energy also had a positive impact of €831 million. Payments made for intangible assets and property, plant and equipment were down by €578 million compared with the value of the prior-year period, primarily owing to lower payments in connection with the Verbund site in Zhanjiang. Free cash flow was minus €1.6 billion in the first half of 2026, compared with minus €1.3 billion in the prior-year period.

Major progress on “Winning Ways” strategy achieved
In February, BASF presented the priorities for 2026. “We are making very good progress and are successfully implementing our ‘Winning Ways’ strategy,” said Kamieth. “We have reduced our costs, brought down our capital expenditures and increased capacity utilization at our plants. Our team in Zhanjiang successfully ramped up the new Verbund site. And the sale of our Coatings activities marks an important step forward in our value-enhancing portfolio measures.”
BASF is consistently strengthening its competitiveness. Kamieth: “We have once again accelerated efforts to streamline our organization and make it more efficient. In the first half of 2026, we already reduced more positions than in the prior two years combined.” From January 2024 until the end of June 2026, BASF reduced the number of employees worldwide by around 7,000. This figure excludes both the reductions resulting from divestitures and the workforce buildup associated with the Zhanjiang Verbund site. Moreover, in May 2026, the number of full-time equivalents at BASF SE in Ludwigshafen was brought below 30,000 – for the first time since 1954. “This is an important and necessary step toward restoring the site’s competitiveness,” Kamieth said.
The company has also made significant progress with the necessary asset restructuring in Ludwigshafen. Since 2024, the share of highly competitive production units at the site has increased from 78 percent to 88 percent. In addition, plant utilization rates improved amid the supply disruptions caused by the Middle East conflict.

BASF Group outlook for 2026
BASF has adjusted its assumptions regarding the global economic environment for 2026 as follows (previous assumptions from the BASF Report 2025 are in parentheses):

Growth in gross domestic product: 2.5 percent (2.7 percent)
Growth in industrial production: 2.0 percent (2.3 percent)
Growth in chemical production: 1.8 percent (2.4 percent)
Average euro/dollar exchange rate of $1.17 per euro ($1.20 per euro)
Average annual oil price (Brent crude) of $80 per barrel ($65 per barrel)

In light of the better-than-expected business development, the BASF Group’s outlook for EBITDA before special items for the 2026 business year published in the BASF Report 2025 has been adjusted (previous forecast from the BASF Report 2025 in parentheses):

EBITDA before special items of between €6.9 billion and €7.7 billion (€6.2 billion to €7.0 billion)
Free cash flow of between €1.5 billion and €2.3 billion (unchanged)
CO2 emissions of between 17.2 million metric tons and 18.2 million metric tons (unchanged)

About BASF
At BASF, we create chemistry for a sustainable future. Our ambition: We want to be the preferred chemical company to enable our customers’ green transformation. We combine economic success with environmental protection and social responsibility. Around 95,000 employees in the BASF Group contribute to the success of our customers in nearly all sectors and almost every country in the world. Our portfolio comprises, as core businesses, the segments Chemicals, Materials, Industrial Solutions, and Nutrition & Care; our standalone businesses are bundled in the segments Surface Technologies and Agricultural Solutions. BASF generated sales of around €60 billion in 2025. BASF shares are traded on the stock exchange in Frankfurt (BAS) and as American Depositary Receipts (BASFY) in the United States. Further information at www.basf.com.

On July 29, 2026, you can obtain further information from the internet at the following addresses:

Half-Year Financial Report (from 7.00 a.m. CEST)

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News Release (from 7.00 a.m. CEST)

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Live Transmission – Telephone Conference for analysts and investors (from 8.30 a.m. CEST)

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Live Transmission – Press Conference (from 10.30 a.m. CEST)

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Speech (from 10.30 a.m. CEST)

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Photos

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Forward-looking statements and forecasts

This release contains forward-looking statements. These statements are based on current estimates and projections of the Board of Executive Directors and currently available information. Forward-looking statements are not guarantees of the future developments and results outlined therein. These are dependent on a number of factors; they involve various risks and uncertainties; and they are based on assumptions that may not prove to be accurate. BASF does not assume any obligation to update the forward-looking statements contained in this release above and beyond the legal requirements.