BASF Reports Strong Q2 EBITDA Growth and Raises Full-Year Outlook
BASF reported a significant increase in second-quarter earnings before special items, with EBITDA rising by 54% year-over-year to €2.4 billion. The growth was driven by higher contribution margins, volume expansion, and reduced fixed costs across most business segments. The company raised its full-year EBITDA forecast for 2026 to between €6.9 billion and €7.7 billion. BASF highlighted strong performance in the Materials, Chemicals, and Industrial Solutions divisions, while Surface Technologies was an exception with a notable decline due to lower earnings from precious-metal services and expired subsidies. The company also announced cost savings of about €2.3 billion by 2026 and is preparing Agricultural Solutions for a potential IPO in mid-2027. BASF improved its balance sheet through the Coatings transaction, reducing net debt to €17 billion. Despite this, first-half free cash flow was negative due to higher working-capital needs. The company also launched a new share-repurchase program worth €1 billion.
Topics: cost_savings earnings ebitda ipo_plans share_buybacks