BASF Reports Preliminary Q2 2026 Results and Raises Full-Year Earnings Outlook

BASF has released its preliminary financial results for the second quarter of 2026, reporting a 16% year-on-year increase in sales to €17.2 billion, compared with €14.8 billion in Q2 2025. The growth was primarily driven by an 11% increase in prices and a 7% rise in sales volumes, partially offset by negative currency and portfolio effects of 1% each. The reported sales also exceeded the average analyst consensus of €16.5 billion, according to Vara Research.

BASF Group’s EBITDA before special items is expected to reach €2.4 billion in the second quarter of 2026, significantly exceeding both the analyst consensus of €2.1 billion and the €1.6 billion recorded in Q2 2025. The strong year-on-year improvement was primarily driven by higher earnings across all segments except Surface Technologies. Materials, Industrial Solutions and Agricultural Solutions considerably outperformed analyst expectations, while Nutrition & Care slightly exceeded those estimates. In contrast, Chemicals and Surface Technologies reported EBITDA before special items significantly below analyst expectations.

BASF Group’s EBITDA is expected to reach €2.0 billion in the second quarter of 2026, in line with analyst expectations and considerably above the €1.3 billion recorded in Q2 2025. Special items affecting EBITDA primarily reflected transformation costs related to the company’s ongoing cost-saving programmes and the implementation of new ERP systems.

BASF Group’s EBIT before special items is expected to reach €1.5 billion in the second quarter of 2026, significantly exceeding both the analyst consensus of €1.1 billion and the €0.7 billion recorded in Q2 2025.

Full-Year 2026 Outlook

Following better-than-expected business performance, BASF has raised its full-year 2026 outlook for EBITDA before special items to between €6.9 billion and €7.7 billion, up from its previous forecast of €6.2 billion to €7.0 billion. The revised range compares with the analyst consensus of €7.3 billion and €6.6 billion recorded in 2025. However, the company has maintained the width of its forecast range due to ongoing geopolitical uncertainties.

BASF continues to expect free cash flow of between €1.5 billion and €2.3 billion in 2026, compared with €1.3 billion in 2025. The outlook reflects, among other factors, increased capital tied up due to higher raw material prices.

The outlook is based on revised assumptions for the global economic environment in 2026, with the previous forecasts from the BASF Report 2025 shown in parentheses.

The outlook for the global economy and regional chemical markets in the second half of 2026 remains highly uncertain, largely depending on the outcome of negotiations between the United States and Iran over access to the Strait of Hormuz. A prolonged disruption to this critical route for energy and petrochemical feedstock shipments from the Middle East could significantly weaken economic activity. Conversely, a swift agreement ensuring reliable access to the strait could support stronger economic growth.

Source: BASF