BASF Raises 2026 Outlook as One Segment Trails Q2 Gains
Image courtesy of BASF SE.
BASF has raised its full-year earnings outlook after reporting preliminary second-quarter sales of €17.2 billion, an increase of 16% from €14.8 billion in the prior-year period.
The company attributed the sales increase primarily to 11% higher prices and 7% volume growth. Currency and portfolio effects each reduced sales by approximately 1%.
EBITDA before special items reached an expected €2.4 billion, up from €1.6 billion in the second quarter of 2025 and above the €2.1 billion analyst consensus cited by BASF.
Earnings improved across all operating segments except Surface Technologies. BASF said EBITDA before special items in Surface Technologies and Chemicals came in significantly below average analyst estimates.
Net income is expected to reach €4.1 billion, compared with €79 million a year earlier. The result was driven primarily by a €3.9 billion pretax disposal gain associated with the coatings transaction with Carlyle, which closed June 30.
Free cash flow declined to an expected negative €200 million from positive €500 million. BASF attributed the change primarily to higher capital tied up because of increased raw-material prices.
BASF now expects full-year EBITDA before special items of €6.9 billion to €7.7 billion, compared with its previous range of €6.2 billion to €7 billion. Its free-cash-flow forecast remains €1.5 billion to €2.3 billion.
The updated outlook assumes an average Brent crude oil price of $80 per barrel, up from BASF’s earlier assumption of $65. The company cited continued geopolitical uncertainty and warned that prolonged disruption of the Strait of Hormuz could affect energy and petrochemical feedstock transportation.
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