BASF reported 2025 financial results, highlighting progress in implementing its “Winning Ways” strategy amid a volatile global market environment.

EBITDA before special items totaled €6.6 billion in 2025, down from €7.2 billion in the prior year, reflecting weaker earnings across several core businesses due to lower contribution margins. Free cash flow improved to €1.3 billion, compared with €0.7 billion in 2024, supported by reduced capital expenditures. Sales for the year reached €59.7 billion, down from €61.4 billion, primarily due to negative currency effects.

The company reported significant milestones during the year, including successful startup of major plants at its new Verbund site in Zhanjiang, China, accelerated cost-savings programs and continued portfolio measures. By the end of 2025, BASF achieved an annual cost reduction run rate of approximately €1.7 billion and now expects annual cost savings of €2.3 billion by the end of 2026.

In the Surface Technologies segment, earnings improved due largely to stronger performance in the Environmental Catalyst and Metal Solutions division. Agricultural Solutions also reported higher earnings driven by improved contribution margins. These gains partially offset declines in the Chemicals, Materials, Industrial Solutions and Nutrition & Care segments.

BASF proposed a dividend of €2.25 per share for the 2025 business year, unchanged from the prior year. The company also continued its share buyback program, with up to €1.5 billion planned between November 2025 and June 2026.

Looking ahead, BASF expects EBITDA before special items of between €6.2 billion and €7.0 billion in 2026 and forecasts free cash flow of €1.5 billion to €2.3 billion. Capital expenditures, including intangibles, are expected to total €3.4 billion.