Gasgoo Munich- BASF recently released its 2025 financial results, reporting sales of 59.7 billion euros—a slight decline from 61.4 billion euros in 2024, weighed down significantly by negative currency effects. EBITDA before special items fell by 686 million euros to 6.6 billion euros. While profits in core sectors like Chemicals and Materials slipped, gains in Surface Technologies and Agricultural Solutions helped offset the pressure. Net income climbed to 1.6 billion euros, up 300 million euros year-on-year, boosted by higher earnings from equity investments and net special items.
Image source: BASF
Cash flow was a standout performance in the report. Free cash flow surged to 1.3 billion euros in 2025, a significant improvement from 748 million euros the previous year, driven largely by a drop in capital expenditures from 6.2 billion to 4.3 billion euros. On shareholder returns, BASF proposed a dividend of 2.25 euros per share for 2025, matching the previous year's payout. The company plans to return at least 12 billion euros to shareholders between 2025 and 2028, including a share buyback of up to 1.5 billion euros scheduled between November 2025 and the end of June 2026.
Strategically, BASF's cost-cutting measures are paying off. By the end of 2025, the company achieved annual savings of 1.7 billion euros, surpassing its target, with a goal of reaching 2.3 billion euros in annual savings by the end of 2026. Between 2023 and 2025, the company streamlined its organizational structure, reducing senior management by 11% and cutting its workforce by approximately 4,800. The start-up of the Zhanjiang Integrated Base marked a major milestone, serving as a central pivot for BASF's expansion in the Asia-Pacific market.
Looking ahead to 2026, BASF projects EBITDA before special items to land between 6.2 billion and 7.0 billion euros, with free cash flow expected to reach 1.5 billion to 2.3 billion euros. Although the launch of the Zhanjiang base may cause a slight uptick in carbon emissions, BASF aims to mitigate this through improved energy efficiency and a shift to renewable energy. The company remains focused on boosting profitability in segments like Nutrition & Care and Chemicals while continuing to optimize its business portfolio.
