BASF presented progress on its “Winning Ways” strategy during a Capital Market Update in Antwerp, Belgium, confirming its 2028 financial targets and providing details on both standalone and core businesses. Chairman Dr. Markus Kamieth said the past 12 months demonstrate that BASF is on track, with a disciplined approach to portfolio steering, capital allocation and performance culture.

A major development came in coatings. BASF finalized the sale of its Brazilian decorative paints business to Sherwin-Williams for $1.15 billion on October 1, 2025. In addition, BASF continues to evaluate strategic options for its automotive OEM coatings, automotive refinish coatings and surface treatment businesses, which together generated €3.8 billion in 2024 sales. A decision on these businesses is expected in Q4 2025. This follows earlier updates in which BASF outlined potential divestiture scenarios and invited bids for its coatings operations.

Beyond coatings, BASF said it will retain Environmental Catalyst and Metal Solutions (ECMS), which produced €7.0 billion in 2024 sales, projecting around €4 billion in cash flow between 2024 and 2030. In battery materials, the company reduced costs and capital expenditures while signing agreements with key customers such as CATL. Agricultural Solutions, which generated €9.8 billion in 2024 sales, is being prepared for IPO readiness by 2027 with legal separation and an industry-specific ERP system.

Chief Financial Officer Dr. Dirk Elvermann said portfolio measures will allow BASF to strengthen its balance sheet and potentially accelerate share buybacks. “We have already received proceeds from divestments in decorative paints and performance ingredients,” Elvermann said. “We will continue to capture value from oil and gas assets and are exploring strategic options for our Coatings activities. Furthermore, we are preparing for a partial IPO of our Agricultural Solutions business.”

The company confirmed financial targets set in 2024, including EBITDA before special items of €10–12 billion in 2028, cumulative free cash flow above €12 billion for 2025–2028 and a 10 percent ROCE. BASF committed to a dividend of at least €2.25 per share each year through 2028, totaling approximately €8 billion, and to at least €4 billion in share repurchases in 2027–2028. Depending on the outcome of its coatings review, repurchases may begin sooner.

BASF also lowered capital spending expectations from €17 billion to €16 billion for 2025–2028. At its Zhanjiang Verbund site in China, total capex was reduced by €1.3 billion to €8.7 billion. The site remains on schedule, with most plants expected to start up by year-end 2025.

In his remarks, Kamieth highlighted the importance of BASF’s integrated value chains, noting that its four core business segments — Chemicals, Materials, Industrial Solutions and Nutrition & Care — produced €40.3 billion in 2024 sales. He said this integration enables the company to sell at every stage of the value chain while achieving competitive cost positions and favorable product carbon footprints.

In coatings specifically, BASF continues to weigh strategic options against its broader financial commitments and shareholder return goals, underscoring the division’s role in the company’s portfolio measures.

Read PCI's Global Top 10 to see where BASF and other coatings manufacturers rank globally.