BASF reports stronger Q2 results, advances restructuring and portfolio moves

Second-quarter results

Group sales in Q2 amounted to €17.2 billion, driven by price increases (+11.5%) and volume growth (+7.3%); currency effects dampened sales. EBITDA before special items rose by €854 million to €2.4 billion, led by Materials, Chemicals and Industrial Solutions. Reported EBITDA was €2.0 billion and included special items of minus €484 million, mainly restructuring charges at Ludwigshafen and ERP implementation costs. EBIT was €937 million and income before taxes €780 million. Income after taxes was €4.2 billion, which included a €3.5 billion disposal gain after taxes from the Coatings sale; net income was €4.1 billion.

Cash flow and first-half development

Operating cash flow in Q2 was €524 million, down €1.1 billion, largely due to higher working capital from inventories (+€654 million) and trade receivables (+€843 million). Investing cash flow was a net inflow of €5.5 billion in Q2, driven by the €5.6 billion net purchase price payment less disposed cash for the Coatings sale and proceeds from Harbour Energy. Free cash flow in Q2 was minus €189 million; free cash flow for H1 was minus €1.6 billion.

Restructuring and portfolio measures

Management reported major progress on the "Winning Ways" strategy: worldwide headcount was reduced by around 7,000 from January 2024 to end-June 2026 (excluding divestitures and Zhanjiang hires), and FTEs at BASF SE Ludwigshafen were lowered below 30,000 in May 2026. The share of highly competitive production units at Ludwigshafen rose from 78% to 88%, and the Zhanjiang Verbund site was successfully ramped up.

Outlook for 2026

Macro assumptions were adjusted to GDP growth 2.5%, industrial production 2.0%, chemical production 1.8%, an average €/$ rate of $1.17 and Brent at $80/bbl. BASF now forecasts 2026 EBITDA before special items of €6.9–7.7 billion; free cash flow guidance remains €1.5–2.3 billion and CO2 emissions guidance remains 17.2–18.2 million metric tons.