BASF Updates on "Winning Ways" Strategy Progress
- BASF plans to keep Environmental Catalyst and Metal Solutions, expecting €4 billion cash flow from 2024 to 2030.
- BASF's Battery Materials division reduced costs and signed agreements with CATL.
- BASF targets IPO readiness for Agricultural Solutions in 2027, with 2024 sales of €9.8 billion.
- Zhanjiang Verbund site in China is on schedule, with capital expenditures reduced to €8.7 billion by 2028.
Financial Targets and Capital Allocation
BASF confirmed its 2028 financial targets, emphasizing a disciplined approach to capital allocation. The company aims for an EBITDA before special items of €10 billion to €12 billion and a cumulative free cash flow of over €12 billion from 2025 to 2028. BASF plans to maintain an annual dividend of at least €2.25 per share and may start its share buyback program earlier, depending on the Coatings transaction.
Standalone Business Developments
BASF plans to retain Environmental Catalyst and Metal Solutions, expecting €4 billion in cash flow from 2024 to 2030. In the Battery Materials division, BASF has reduced costs and signed agreements with key customers like CATL. The Coatings division sold its Brazilian decorative paints business and is exploring strategic options for other segments, with decisions expected by Q4 2025. BASF targets IPO readiness for its Agricultural Solutions division in 2027.
Core Business and Value Chains
The Zhanjiang Verbund site in China is on schedule and under budget, with capital expenditures reduced to €8.7 billion by 2028. BASF's core businesses, including Chemicals, Materials, Industrial Solutions, and Nutrition & Care, generated €40.3 billion in sales in 2024. The company leverages integrated value chains to enhance competitiveness and aims to improve earnings by €400 million by 2028 through strategic measures.
Source: BASF