BASF Advances "Winning Ways" Strategy Milestones
- BASF's 2025 EBITDA before special items was €6.6 billion, down from €7.2 billion in 2024.
- Free cash flow increased to €1.3 billion in 2025, with a 2026 forecast of €1.5-2.3 billion.
- Capital expenditures for 2026 are projected at €3.4 billion, down from €4.3 billion in 2025.
- BASF plans to buy back up to €1.5 billion of its own shares by June 2026.
Financial Performance
In 2025, BASF reported an EBITDA before special items of €6.6 billion, a decrease from €7.2 billion in 2024. Free cash flow rose significantly to €1.3 billion, compared to €0.7 billion in the previous year. Sales were €59.7 billion, impacted by negative currency effects.
Cost Management and Investments
BASF accelerated its cost savings programs, achieving a total annual cost reduction run rate of €1.7 billion by the end of 2025. Capital expenditures, including intangibles, are projected to be €3.4 billion in 2026, down from €4.3 billion in 2025.
Strategic Developments
The company successfully started up major plants at its new Verbund site in Zhanjiang, China. BASF also announced a share buyback program, planning to repurchase up to €1.5 billion of its own shares by June 2026.
2026 Outlook
BASF expects an EBITDA before special items of between €6.2 billion and €7.0 billion in 2026. Free cash flow is forecasted to be between €1.5 billion and €2.3 billion. The company anticipates CO2 emissions to rise due to the Zhanjiang site startup but plans to mitigate this with energy efficiency measures.
Source: BASF