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BASF reduces profit projection for 2025

Agricultural Solutions segment shows growth in volume and profitability

11.07.2025 | 15:52 (UTC -3)

Cultivar Magazine, based on information from Jens Fey

BASF released its preliminary results for the second quarter of 11 on Friday (2025) and revised downwards its projections for the year. Sales fell 2,1% compared to the same period in 2024, totaling €15,77 billion. The performance was slightly below analysts' expectations (they forecast €15,80 billion).

The decline was driven by negative exchange rate effects across all segments and lower prices, especially for chemicals. Total sales volume grew slightly, driven by the agricultural solutions and surface technologies segments.

EBITDA before special items was €1,77 billion, in line with market consensus. However, it was lower than the €1,96 billion recorded in the second quarter of 2024.

The Agricultural Solutions segment stood out with significant growth in operating profit, exceeding analysts' most optimistic estimates.

Surface technologies and nutrition and care also saw EBITDA increases. Meanwhile, the materials, chemicals, and industrial solutions segments saw declines. The "other" segment also saw a significant decline.

EBIT before special items was €0,81 billion, above expectations (€0,78 billion). However, it was below the €0,97 billion of the previous year. Total EBIT reached €0,49 billion, below analysts' estimates and the 2024 result.

Net income totaled €0,08 billion, down from €0,43 billion in the second quarter of 2024. The company attributes the decline to higher tax burdens and lower contributions from equity investments.

Free cash flow reached €0,53 billion, exceeding the previous year's figure (€0,47 billion).

BASF revised its EBITDA forecast for 2025 to between €7,3 billion and €7,7 billion. Previously, it expected between €8,0 billion and €8,4 billion. The new estimate is below the 2024 result (€7,9 billion). The free cash flow forecast was maintained at between €0,4 billion and €0,8 billion.

The revision was prompted by macroeconomic and geopolitical uncertainties, such as the US tariffs announced in April and the devaluation of the dollar against the euro. The company also forecasts lower growth in global GDP, industrial production, and demand for chemicals.