BASF reports USD 19.6B sales in Q2 2026 despite currency headwinds
The company made major progress on restructuring and portfolio measures, while lifting its full-year 2026 EBITDA outlook.
GERMANY – BASF reported a strong second quarter of 2026, with sales rising 16% year on year to €17.2 billion(USD 19.60 billion), supported by higher prices and volume growth.
According to BASF, nearly all segments delivered higher earnings in the quarter, with stronger pricing and higher volumes driving sales growth.
Currency effects weighed on sales, but they were not enough to offset the overall momentum.
EBITDA before special items improved by €854 million (USD 974 million) to €2.4 billion (USD 2.73 billion), while EBITDA rose to €2.0 billion (USD 2.28 billion) from €1.3 billion (USD 1.48 billion) a year earlier.
The main earnings gains came from Materials, Chemicals and Industrial Solutions, helped by improved contribution margins.
Sales increased to €17.2 billion (USD 19.60 billion) from €14.8 billion (USD 16.88 billion) a year earlier, reflecting a 11.5% rise in prices and 7.3% volume growth.
The price increase was led by Chemicals, Surface Technologies, Materials and Industrial Solutions, while Agricultural Solutions and Nutrition & Care saw price declines.
Volumes rose in almost all segments, except Surface Technologies, which recorded a slight decline. BASF noted that foreign exchange movements had a negative impact across all segments.
EBIT climbed to €937 million (USD 1.07 billion) from €395 million (USD 450 million) in the prior-year quarter, while income before income taxes rose to €780 million (USD 889 million).
Income after taxes jumped to €4.2 billion (USD 4.79 billion), mainly because of a €3.5 billion (USD 3.99 billion) disposal gain from the sale of the Coatings business to Carlyle.
Net income reached €4.1 billion (USD 4.67 billion), up from €79 million (USD 90 million).
Operating cash flow fell to €524 million (USD 597 million), mainly due to higher working capital, including higher inventories and trade receivables.
Free cash flow was negative €189 million (USD 215 million) in the quarter.
For the first half of 2026, BASF’s sales rose to €33.2 billion (USD 37.85 billion), up €1.9 billion (USD 2.16 billion) from the same period in 2025.
The company said this was driven by positive volume and price effects, with volumes up 5.7% and prices up 4.8%.
First-half EBITDA before special items improved to €4.8 billion (USD 5.47 billion), while EBITDA rose to €4.2 billion (USD 4.79 billion).
BASF also posted higher EBIT and pretax income, and a sharp rise in net income, again boosted by the Coatings divestment gain.
BASF made “major progress” on its “Winning Ways” strategy, including cost reductions, lower capital expenditure, higher plant utilization and continued restructuring at Ludwigshafen.
BASF reduced worldwide headcount by around 7,000 since January 2024, excluding divestments and the Zhanjiang site buildup.
Based on the better-than-expected performance, BASF raised its 2026 EBITDA before special items outlook to between €6.9 billion (USD 7.86 billion) and €7.7 billion (USD 8.77 billion), from a prior range of €6.2 billion (USD 7.07 billion) to €7.0 billion(USD 7.98 billion).
It kept its free cash flow forecast at €1.5 billion (USD 1.71 billion) to €2.3 billion (USD 2.62 billion) and its CO2 emissions outlook unchanged.
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