BASF's sales are projected to reach €59.7 billion in 2025, with net income increasing to €1.6 billion

Recently, BASF Group released its financial data for 2025. The data shows that BASF’s sales in 2025 will be €59.7 billion, slightly down from €61.4 billion in 2024, with negative exchange rate effects significantly impacting sales. Adjusted EBITA (earnings before interest, taxes, depreciation, and amortization) excluding special items is €6.6 billion, down €686 million year-over-year. Profits in core business segments such as chemicals and materials declined, but autonomous businesses like surface treatment technology and agricultural solutions saw increased earnings, partially offsetting the pressure on core operations. The company’s net income rose to €1.6 billion, a €300 million increase year-over-year, driven by higher gains from equity investments and related special net income.

Image source: BASF

Cash flow performance was a highlight of the financial report. BASF’s free cash flow in 2025 surged to €1.3 billion, a significant improvement from €748 million in 2024, mainly due to capital expenditures decreasing from €6.2 billion to €4.3 billion. Regarding shareholder returns, BASF plans to pay a dividend of €2.25 per share in 2025, unchanged from 2024. The company also plans to distribute at least €12 billion to shareholders from 2025 to 2028, with a share buyback of up to €1.5 billion scheduled from November 2025 to the end of June 2026.

In terms of strategy, BASF’s cost reduction program has been highly effective, achieving annual cost savings of €1.7 billion by the end of 2025, exceeding the target. It is expected to realize annual savings of €2.3 billion by the end of 2026. From 2023 to 2025, the company streamlined its organizational structure, reducing senior management by 11% and cutting approximately 4,800 employees. The commissioning of the integrated Zhanjiang site marks a key milestone, serving as a core hub for BASF’s expansion into the Asia-Pacific market.

For 2026, BASF expects adjusted EBITA (excluding special items) to be between €6.2 billion and €7.0 billion, with free cash flow projected to reach €1.5 billion to €2.3 billion. Although the Zhanjiang plant’s operation will lead to a slight increase in carbon emissions, BASF will implement measures such as improving energy efficiency and transitioning to renewable energy to achieve emission reductions. The company will also focus on enhancing profitability in segments like nutrition and care, chemicals, and others, continuously optimizing its business portfolio.