BASF Adjusts 2025 Outlook as Margin Pressures Weigh on Q2 Earnings

BASF reported second quarter 2025 sales of €15.8 billion, slightly below the prior-year period due to negative currency effects and lower prices, especially in the Chemicals segment. EBITDA before special items declined to €1.8 billion, down from €2 billion a year ago, reflecting margin pressure in base chemicals despite earnings growth in Agricultural Solutions, Surface Technologies and Nutrition & Care.

Net income dropped to €79 million from €430 million in Q2 2024, impacted by lower earnings from shareholdings and structural cost-saving charges. Free cash flow rose €62 million year over year to €533 million, as major investments in China tapered off.

Citing ongoing macroeconomic uncertainty and weaker demand forecasts, BASF revised its 2025 outlook, now expecting EBITDA before special items between €7.3 billion and €7.7 billion—down from the previous €8.0 billion to €8.4 billion.

Read the full Q2 2025 update from BASF

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