BASF Raises Outlook, Reports €3.5B Coatings-Sale Gain
Image courtesy of BASF SE.
BASF reported second-quarter sales of €17.2 billion, up €2.4 billion from the prior-year period. Prices increased 11.5% and volumes grew 7.3%, while currency effects reduced sales across all segments.
EBITDA before special items increased by €854 million to €2.4 billion. Materials, Chemicals and Industrial Solutions led the improvement. Surface Technologies recorded slightly lower volumes and a significant earnings decline, which BASF attributed to higher fixed costs.
Net income increased to €4.1 billion from €79 million. The result included a €3.5 billion after-tax gain from the sale of BASF’s Coatings business to Carlyle. BASF reported a €5.6 billion net cash inflow associated with the transaction.
The company also said it reduced its global workforce by approximately 7,000 positions from January 2024 through June 2026, excluding divestitures and the workforce expansion at its Zhanjiang site.
BASF raised its 2026 guidance for EBITDA before special items to between €6.9 billion and €7.7 billion, compared with its previous range of €6.2 billion to €7 billion. Its free-cash-flow guidance remains between €1.5 billion and €2.3 billion.
Read the full BASF results.
The results quantify the financial impact of separating the former BASF Coatings business, now Surventis, while also showing continued pressure within BASF’s remaining Surface Technologies operations.
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