BASF quarterly profit falls, launches EUR1.5 billion share buyback

BASF SE on Wednesday reported lower profit for the third quarter of 2025, as foreign exchange headwinds and weak prices weighed on sales, but said results came in slightly above market expectations.

The Ludwigshafen, Germany-based chemicals company said pretax profit fell to EUR184 million from EUR570 million a year earlier, while net profit dropped to EUR172 million from EUR287 million. Earnings before interest, tax, depreciation and amortisation stood at EUR1.54 billion, down 4.8% from EUR1.62 billion.

Sales declined 3.2% year-on-year to EUR14.3 billion, or EUR15.2 billion on a pro forma basis including discontinued operations, from EUR14.8 billion, or EUR15.7 billion previously.

BASF said the decline reflected negative currency effects, mainly from the US dollar, Chinese renminbi and Indian rupee, and lower prices in several segments, including Chemicals, Materials, Industrial Solutions and Agricultural Solutions.

Positive volume growth in Surface Technologies, Chemicals and Materials only partly offset those effects.

"The third quarter of 2025 was characterized by challenging market dynamics. Customer buying behavior in almost all industries and regions remained cautious," said Chair Markus Kamieth. "Even in this demanding market environment, BASF's earnings came in slightly above market expectations and only slightly below the level of the prior-year quarter."

The EUR1.54 billion Ebitda figure came in slightly above the EUR1.43 billion average market expectation, based on an analyst consensus published on the company’s website.

Ebitda before special items, excluding discontinued operations, edged down to EUR1.4 billion from EUR1.5 billion. BASF said lower earnings in Industrial Solutions, Chemicals, Materials and Nutrition & Care were partly offset by stronger performance in Surface Technologies and Agricultural Solutions.

The Ebitda margin before special items was unchanged at 10%. Reported Ebitda, which included special charges of EUR200 million mainly linked to ongoing cost-saving programmes, amounted to EUR1.2 billion.

Earnings per share fell to EUR0.19 from EUR0.32, while adjusted earnings per share improved to EUR0.52 from EUR0.32.

Cash flow from operating activities totalled EUR1.4 billion, down EUR681 million year-on-year, due mainly to changes in operating assets. Free cash flow came in at EUR398 million, down from EUR569 million, while capital expenditure was reduced to EUR973 million from EUR1.48 billion.

BASF also announced that it will begin a EUR1.5 billion share buyback programme in November, several years ahead of its original plan, following portfolio sales including the coatings divestiture.

The programme will run until the end of June 2026 as part of the EUR4 billion buyback authorised through 2028.

"The earlier start of the share buyback program demonstrates management's confidence in the underlying financial strength and true value of BASF, which in our view is not fully reflected in the current share price," said Chief Financial Officer Dirk Elvermann.