Factbook
Financing
Our financing policy aims to ensure our solvency at all times, limiting the risks associated with financing and optimizing our cost of capital. We preferably meet our external financing needs on the international capital markets. BASF strives for a single A credit rating, which gives us unrestricted access to financial and capital markets. Our financing measures are aligned with our operational business planning as well as the company’s strategic direction and also ensure the financial flexibility to take advantage of strategic options.
Financing policy
We have solid financing, both for ongoing business and for investment projects initiated or planned. Corporate bonds form the basis of our medium to long-term debt financing. These are issued in euros and other currencies with different maturities as part of our €20 billion debt issuance program. The goal is to create a balanced maturity profile, diversify our financing and optimize our debt capital financing conditions.
For short-term financing, we use BASF SE’s global commercial paper program, which has an issuing volume of up to $12.5 billion. As of December 31, 2025, no commercial paper was outstanding under this program. A firmly committed, syndicated credit line of €6 billion with a term until 2030 covers the repayment of outstanding commercial paper. It can also be used for general company purposes. This credit line was not used at any point in 2025. In 2023, BASF Integrated Site (Guangdong) Co. Ltd., Zhanjiang, China, signed a syndicated bank term loan facility totaling 40 billion Chinese renminbi with a maturity of 15 years for the construction of the Verbund site in Zhanjiang. Of this amount, 34 billion Chinese renminbi (€4.2 billion) was utilized as of December 31, 2025. Our external financing is largely independent of short-term fluctuations in the credit markets.
BASF Group’s most important financial contracts contain no side agreements with regard to specific financial ratios (financial covenants) or compliance with a specific rating (rating trigger). To minimize risks and leverage internal optimization potential within the Group, we bundle the financing, financial investments and foreign currency hedging of BASF SE’s subsidiaries within the BASF Group where possible. Foreign currency risks are primarily hedged centrally using derivative financial instruments in the market.
Cash flows from operating activities and free cash flow
Cash flows from operating activities amounted to €5,610 million in the 2025 business year, €1,336 million below the prior-year figure. The increased net income in 2025 included significantly higher noncash and reclassification items than in the previous year. In addition to higher equity-accounted income, this related in particular to income from divestitures, while depreciation and amortization was lower than in 2024.
Cash flows from investing activities amounted to –€3,208 million in 2025, after –€5,081 million in the previous year. The significant improvement was mainly due to lower payments made for property, plant and equipment and intangible assets, which were reduced from €6,198 million in the previous year to €4,267 million in 2025. In addition, net cash inflows from acquisitions and divestitures increased by €997 million compared to the previous year.
Cash flows from financing activities amounted to –€2,416 million in the 2025 business year, below the prior-year figure of –€1,547 million. In 2025, additions to and repayment of financial and similar liabilities almost balanced each other out. The share buyback program launched in the fourth quarter of 2025 led to a cash outflow of €355 million.
Free cash flow, which remains after deducting payments made for property, plant and equipment and intangible assets from cash flows from operating activities, represents the financial resources remaining after investments. Due to the lower capital expenditures, free cash flow improved significantly compared to the previous year. In 2025, free cash flow was €1,342 million, compared to €748 million in 2024.
Cash flow
Billion €
Good credit ratings and solid financing
BASF enjoys good credit ratings, especially compared with competitors in the chemical industry. Fitch confirmed its credit rating of A/F1/outlook stable on February 13, 2026. Moody’s maintained its credit rating of A3/P-2/outlook stable on January 28, 2026. Standard & Poor’s confirmed its credit rating of A-/A-2/outlook stable on December 12, 2025.
Ratings as of May 1, 2026
| Agency | Noncurrent financial indebtedness | Current financial indebtedness | Outlook |
| Moody’s | A3 | P-2 | stable |
| Standard & Poor’s | A- | A-2 | stable |
| Fitch | A | F1 | stable |