BASF reports steady sales, though pricing and currency hit earnings

(Sharecast News) - BASF reported broadly steady sales and a sharp improvement in cash generation in its preliminary full-year 2025 results on Friday, despite weaker pricing and currency headwinds weighing on earnings.

The German chemicals group said sales for the year were expected to total �59.7bn, excluding its discontinued coatings activities, broadly in line with market expectations and around 3% lower than in 2024.

Volumes edged slightly higher, but that was more than offset by lower prices and negative foreign-exchange effects, with trends in the fourth quarter largely unchanged from earlier in the year.

Adjusted EBITDA was forecast at �6.6bn, modestly below analyst consensus and under the lower end of BASF's previous guidance range of �6.7bn to �7.1bn.

On a pro-forma basis excluding Coatings, that represented an 8% decline year-on-year.

Reported EBIT slipped to �1.6bn as higher restructuring costs weighed, while reported net income rose to �1.6bn from �1.3bn, helped by a stronger contribution from Wintershall Dea.

Free cash flow stood out as a key positive, more than doubling to �1.3bn from �0.7bn a year earlier and coming in well ahead of expectations.

The improvement was driven mainly by a sharp reduction in capital expenditure to �4.3bn from �6.2bn in 2024, reflecting the completion of major investment projects in China, although operating cash flow eased to �5.6bn due largely to higher working capital linked to precious metals trading.

At 1324 CET (1224 GMT), shares in BASF were down 1.89% at �45.64.

Reporting by Josh White for Sharecast.com.