Financial results of the BASF Group second quarter 2025: Stable sales despite challenges

Sales in the Second Quarter of 2025

Sales of the BASF Group in the second quarter of 2025 amounted to 15.8 billion euros, representing a year-on-year decline of 342 million euros. This development was influenced by adverse currency effects and lower prices, with the Chemicals segment recording the most significant price decline. However, prices rose in the Surface Technologies and Nutrition & Care segments. Positive volume growth in the Agricultural Solutions, Surface Technologies and Materials segments partially offset the decline in sales.

Compared with the same quarter of the previous year, income from operations before depreciation, amortisation and special items (EBITDA before special items) decreased by 185 million euros to 1.8 billion euros, mainly due to a significant decline in earnings in the Chemicals segment, which was largely the result of lower margins. The Industrial Solutions and Materials segments also recorded a decline in earnings. By contrast, earnings growth was achieved primarily in the Agricultural Solutions segment, but also in Surface Technologies. The Nutrition & Care segment also recorded an increase in earnings. EBITDA before special items in the Others segment declined significantly compared with the same period of the previous year. The EBITDA margin before special items reached 11.2%, compared with 12.1% in the same quarter of the previous year.

Earnings Before Interest, Taxes, Depreciation and Amortisation

EBITDA amounted to 1.5 billion euros (1.6 billion euros in the previous year). In the second quarter of 2025, EBITDA included special items of minus 297 million euros. Special charges arose primarily from structural measures related to the cost-saving programmes. EBIT of 494 million euros was 22 million euros lower than in the same period of the previous year. The decline in net income from shareholdings of 112 million euros was primarily due to negative earnings contributions from Wintershall Dea GmbH and Harbour Energy plc. The financial result improved by 52 million euros to minus 106 million euros compared with the second quarter of 2024. As a result, income before taxes amounted to 316 million euros, 82 million euros less than in the same quarter of the previous year. Net income amounted to 79 million euros, compared with 430 million euros in the same quarter of the previous year.

Cash Flow Development in the Second Quarter of 2025

Cash flows from operating activities totalled 1.6 billion euros in the second quarter, 365 million euros less than in the same period of 2024. The main reason for the decline was the change in trade payables. Compared with the previous period, cash flows from investing activities improved significantly by 1.0 billion euros to minus 1.1 billion euros. euros, primarily due to lower payments for property, plant and equipment and intangible assets, which were 428 million euros lower than in the same quarter of the previous year. “We have already passed the peak investment phase at our Verbund site in southern China, and our cash performance will therefore improve accordingly,” said Elvermann. Free cash flow, which represents cash flows from operating activities less payments for property, plant and equipment and intangible assets, amounted to 533 million euros in the second quarter of 2025, an increase of 62 million euros compared with the same period of the previous year.

BASF Group Outlook for 2025

In view of the ongoing macroeconomic and geopolitical uncertainties, BASF has adjusted its assumptions for the full year 2025. According to current estimates, global gross domestic product will grow more slowly in 2025 than originally expected. Growth is expected to weaken in all major economic regions in the second half of the year. Following the significant weakening of the US dollar against the euro, it is expected to remain at the same level as at the end of the first half of the year. According to current estimates, growth in global industrial production will also slow. As a result, growth in market demand for chemical products in 2025 will not be as strong as originally expected. Margins, particularly in the extraction sector, remain under pressure due to the persistently high availability of products on the market.