BASF reports €17.2 billion Q2 revenue, raises 2026 earnings outlook on stronger operating performance

July 30, 2026 BASF Global

30 July 2026, Ludwigshafen: BASF reported improved financial performance for the second quarter of 2026, supported by stronger pricing, higher sales volumes and continued progress on its restructuring and portfolio optimization strategy. The company also raised its full-year earnings outlook following better-than-expected operating performance.

Presenting the company’s half-year results, BASF Chief Executive Officer Dr. Markus Kamieth said the company had strengthened its market position while advancing restructuring initiatives and strategic portfolio measures. BASF had previously released preliminary second-quarter figures on July 15 after EBITDA before special items exceeded market expectations.

Sales rise on higher prices and increased demand

BASF generated €17.2 billion in sales during the second quarter of 2026, an increase of €2.4 billion compared with the same period last year.

The growth was primarily driven by an 11.5% increase in prices and 7.3% growth in sales volumes. Higher prices were recorded in the Chemicals, Materials, Industrial Solutions and Surface Technologies businesses, while Agricultural Solutions and Nutrition & Care experienced lower pricing. Sales volumes improved across nearly all segments except Surface Technologies, where volumes declined slightly. Currency movements negatively affected reported sales across all businesses.

Operating earnings improve significantly

EBITDA before special items increased by €854 million year-on-year to €2.4 billion, reflecting improved contribution margins, particularly in the Materials, Chemicals and Industrial Solutions segments.

Agricultural Solutions and Nutrition & Care also delivered modest earnings growth, while Surface Technologies reported lower earnings due to higher fixed costs. The company’s “Other” business recorded a substantial improvement compared with the previous year.

Reported EBITDA rose to €2.0 billion, compared with €1.3 billion a year earlier. The quarter included €484 million in special charges, mainly related to restructuring initiatives at the Ludwigshafen site and the implementation of new enterprise resource planning (ERP) systems.

EBIT increased to €937 million, up from €395 million in the second quarter of 2025, while income before income taxes reached €780 million, representing a year-on-year increase of €560 million.

Net income boosted by Coatings business sale

Income after taxes climbed sharply to €4.2 billion, compared with €108 million in the prior-year quarter. The result included a €3.5 billion after-tax gain from the sale of BASF’s Coatings business to Carlyle.

As a result, net income reached €4.1 billion, compared with €79 million in the second quarter of 2025.

Cash flow affected by higher working capital

Cash flow from operating activities totaled €524 million, down €1.1 billion from the previous year.

The decline was largely due to higher working capital requirements. Inventories increased as a result of higher raw material prices, while trade receivables also rose, tying up additional cash.

Cash flow from investing activities improved significantly to €5.5 billion, compared with an outflow of €1.1 billion in the prior-year quarter. The increase reflected the €5.6 billion net proceeds from the sale of the Coatings business, €522 million received from the sale of Harbour Energy shares, and reduced capital expenditure, particularly at the Zhanjiang Verbund site.

Free cash flow for the quarter stood at negative €189 million, compared with positive €532 million in the same period last year.

First-half 2026 results show broad-based improvement

For the first six months of 2026, BASF reported sales of €33.2 billion, up €1.9 billion from the first half of 2025. Sales growth was supported by 5.7% higher volumes and 4.8% stronger pricing, partially offset by adverse currency effects.

EBITDA before special items increased to €4.8 billion, up €715 million year-on-year, driven by improved performance in the Materials, Industrial Solutions, Chemicals and Surface Technologies segments.

Reported EBITDA reached €4.2 billion, while EBIT increased to €2.2 billion. Income before taxes rose to €1.9 billion.

Income after taxes increased to €5.1 billion, including the after-tax gain from the Coatings divestment. Net income also reached €5.1 billion, compared with €887 million in the first half of 2025.

Operating cash flow for the first six months was negative €273 million, while investing cash flow improved to €5.1 billion, supported by proceeds from the Coatings transaction, Harbour Energy share sales and lower capital expenditure. Free cash flow for the period was negative €1.6 billion.

BASF advances restructuring and “Winning Ways” strategy

BASF said it continued to make progress on its “Winning Ways” strategy, aimed at improving competitiveness, simplifying operations and enhancing portfolio quality.

According to the company, cost reductions, lower capital expenditure and higher plant utilization have supported operational improvements during the year. BASF also completed the sale of its Coatings business, describing it as an important milestone in its portfolio transformation.

The company accelerated workforce restructuring during the first half of 2026, reducing more positions than during the previous two years combined. Since January 2024, BASF has reduced its global workforce by approximately 7,000 employees, excluding changes resulting from divestitures and hiring for the new Zhanjiang Verbund site.

In May 2026, the number of employees at BASF SE’s Ludwigshafen site fell below 30,000 for the first time since 1954. BASF also reported that the share of highly competitive production assets at Ludwigshafen increased from 78% in 2024 to 88%, while plant utilization improved despite supply disruptions linked to the Middle East conflict.

BASF raises full-year 2026 earnings guidance

Reflecting stronger business performance during the first half of the year, BASF increased its forecast for 2026 EBITDA before special items to between €6.9 billion and €7.7 billion, compared with its previous guidance of €6.2 billion to €7.0 billion.

The company maintained its forecast for free cash flow of €1.5 billion to €2.3 billion and CO₂ emissions between 17.2 million and 18.2 million metric tons.

BASF also updated its macroeconomic assumptions for 2026, now expecting:

Global GDP growth of 2.5% (previously 2.7%)
Industrial production growth of 2.0% (previously 2.3%)
Chemical production growth of 1.8% (previously 2.4%)
Average euro-dollar exchange rate of US$1.17 per euro
Average Brent crude oil price of US$80 per barrel, revised upward from US$65 per barrel

The company said the revised outlook reflects stronger operating performance despite a more cautious global economic environment.

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