BASF (BAS) Q1 2026 earnings summary

Executive summary

• Q1 2026 featured solid volume growth of 4.7%, nearly offsetting a 4.8% price decline and 5.1% negative currency impact, resulting in a 3.0% sales decrease year-over-year, with resilience amid Middle East conflict and supply chain volatility.

• EBITDA before special items was €2,356 million, down 5.6% year-over-year, mainly due to adverse currency effects exceeding €100 million, while net income rose 14.8% to €927 million.

• Free cash flow improved to minus €1.4 billion from minus €1.8 billion in Q1 2025, reflecting better operating cash flows and reduced capex.

• Resilience was supported by a diversified portfolio, local-for-local production, integrated Verbund sites, and flexible feedstock sourcing.

Financial highlights

• Sales: €16,020 million, down 3.0% year-over-year, with EBITDA before special items at €2,356 million and margin at 14.7%.

• EBIT improved to €1,261 million; special charges in EBIT were €170 million (down from €430 million year-over-year).

• Net income rose by €119 million to €927 million; earnings per share increased to €1.06 from €0.91.

• Cash fixed costs declined by 5% to €3,887 million due to restructuring and currency effects.

• Free cash flow improved by €423 million to minus €1,375 million.

Outlook and guidance

• 2026 guidance maintained: EBITDA before special items €6.2–7.0 billion; free cash flow €1.5–2.3 billion.

• Cost savings of ~€2.3 billion targeted by end of 2026, with €1.9 billion already achieved by March 2026.

• Capex to decrease by 20% from 2026–2029 compared to 2025–2028; capex to remain below depreciation until 2028.

• Macroeconomic assumptions: GDP growth +2.7%, industrial production +2.3%, chemical production +2.4%, average EUR/USD 1.20, Brent crude $65/barrel.

• High uncertainty due to Middle East conflict, higher oil/gas prices, and potential supply chain disruptions.