BASF (BAS) Q2 2026 (Media) earnings summary

Executive summary

• EBITDA before special items in Q2 2026 rose 54% to EUR 2.4 billion, exceeding analyst expectations, driven by higher prices, volume growth, and lower fixed costs.

• Sales increased by 6.2% year-over-year to €33.2 billion in H1 2026, with strong contributions from Chemicals and Nutrition & Care.

• Major restructuring and portfolio measures advanced, including the sale of coatings activities and ramp-up of the Zhanjiang Verbund site.

• Workforce reduced by 7,000 positions since January 2024, with significant progress in cost-saving and asset restructuring, especially at Ludwigshafen.

• Net income surged to €5.1 billion, mainly due to a €3.5 billion after-tax gain from the Coatings business divestiture.

Financial highlights

• EBITDA before special items for H1 2026 reached EUR 4.8 billion, up EUR 715 million year-over-year.

• EBIT increased 41.4% year-over-year to €2.2 billion.

• Free cash flow for H1 2026 was EUR -1.6 billion, reflecting higher working capital needs and inventory buildup.

• Equity ratio improved to 44.6%; net debt declined to about EUR 17 billion.

• Cash and cash equivalents rose to €7.8 billion, mainly from the Coatings sale.

Outlook and guidance

• Full-year 2026 EBITDA before special items forecast raised to EUR 6.9–7.7 billion.

• Free cash flow expected between EUR 1.5–2.3 billion for 2026.

• CapEx to remain below depreciation until 2028; capital expenditures to be reduced by 20% through 2028.

• Outlook remains highly uncertain due to Middle East conflict and potential supply chain disruptions.