BASF has significantly lowered its earnings forecast for 2025. The chemical company now expects EBITDA before special items of between 7.3 and 7.7 billion euros. Previously, the range was between 8.0 and 8.4 billion euros. The company cites ongoing geopolitical tensions, uncertainties related to U.S. tariffs, and highly volatile exchange rates as reasons.

At the same time, BASF presented initial key data for the second quarter. Sales fell by 2.1 percent year-on-year to 15.77 billion euros primarily due to negative currency effects in all segments and lower prices in the chemicals business. As a result, the company slightly missed the analyst consensus of 15.80 billion euros according to Vara Research.

The operating result (EBITDA before special items) amounted to 1.77 billion euros – compared to 1.96 billion euros in the same period of the previous year. The figures were in line with market expectations. The net profit, however, fell significantly to only 80 million euros, down from 430 million euros in the previous year. According to the company, this was due to higher tax expenses and a decline in contributions from investments.

A Glimmer of Hope: Sales Volumes Increased Slightly Compared to the Previous Year – Driven Especially by Demand in the Agricultural Solutions and Surface Technologies Segments. Free Cash Flow is Still Expected to be Between 400 and 800 Million Euros for the Entire Year.

BASF plans to publish the complete half-year figures on July 30. However, the message is already clear: The company is facing increasing headwinds and is accordingly setting expectations for the current year more defensively.