BASF raised its 2025 Ebitda target to at least €6.9 billion after price hikes and higher volumes, but warned a prolonged Iran conflict could hit economic activity and demand.
BASF SE lifted its full-year earnings forecast after the chemicals maker pushed through higher prices on products ranging from plastics to cleaning agents, though it warned that a prolonged conflict in the Middle East could cloud the outlook.
The German manufacturer now expects earnings before interest, taxes, depreciation and amortization before special items of at least €6.9 billion ($7.9 billion), up from a prior target of €6.2 billion. Higher sales volumes also helped in the second quarter, the company said Wednesday.
Shares fell 4.4% in Frankfurt trading. The stock is still up roughly 7% this year.
Since the U.S.-Iran conflict escalated, BASF has been charging more after Asian rivals suffered bigger supply disruptions. The company's ability to lift prices partly offset structural headwinds including weak demand and global overcapacity that continue to weigh on the outlook.
The guidance increase was not entirely unexpected. Citi analysts said last week they had anticipated BASF to publish financial figures ahead of schedule after peer Covestro AG raised its own operating earnings forecast for fiscal 2026.
For the second half, BASF said the global economy and regional chemical markets depend heavily on talks between the U.S. and Iran. A prolonged closure of the Strait of Hormuz, a key route for energy and petrochemical feedstocks, "would weigh significantly on economic activity," the company said. A quick agreement "would provide additional momentum for economic growth."
Chief Executive Officer Markus Kamieth has accelerated efforts to streamline BASF's portfolio and improve returns. The company is preparing to list its agricultural solutions division by mid-2027 while continuing cost-cutting at its flagship Ludwigshafen site. Last year, BASF agreed to sell a majority stake in its automotive coatings business to Carlyle Group Inc.
BASF's Alpha Score sits at 29 out of 100, a Weak label in the Financial Services sector, reflecting the structural pressures the company faces even as it navigates short-term pricing gains.
Prepared with AlphaScala editorial tooling from the source reporting linked above. Indexable analysis may include a cited Alpha Score value. Publishing checks screen each story before release. Educational coverage, not personalized advice.