- BASF’s 2Q adjusted EBITDA was €1.77 billion, slightly beating the estimate of €1.73 billion but down 9.5% from the previous year.
- The Chemicals division saw a significant drop in adjusted EBITDA to €209 million, falling 53% year-over-year, against an estimate of €305 million.
- Nutrition and Care division’s adjusted EBITDA rose by 7.1% to €196 million, slightly below the estimated €207.1 million.
- The Materials segment reported an adjusted EBITDA of €408 million, a decrease of 8.9%, marginally below the estimate of €412 million.
- Industrial Solutions’ adjusted EBITDA was €307 million, down 16%, compared to an estimate of €341.7 million.
- Surface Technologies performed well with an adjusted EBITDA increase of 9.7% to €350 million, surpassing the estimated €310.7 million.
- Agricultural Solutions had a notable increase in adjusted EBITDA to €417 million from €135 million the previous year, exceeding the estimate of €265.1 million.
- Adjusted EBIT stood at €810 million, down 16% year-over-year, surpassing the estimate of €758.2 million.
- Sales were €15.77 billion, down 2.1% from the previous year, slightly below the estimate of €15.83 billion.
- The Chemicals segment revenue was €2.50 billion, declining 12%, below the estimated €2.71 billion.
- Materials sales decreased by 5.2% to €3.24 billion, compared to the estimate of €3.37 billion.
- Industrial Solutions sales were €2.16 billion, down 9.1%, below the projected €2.3 billion.
- Surface Technologies sales rose by 11% to €3.34 billion, exceeding the estimate of €2.97 billion.
- Nutrition & Care sales were €1.62 billion, down 2.9%, slightly below the estimate of €1.68 billion.
- Agricultural Solutions sales increased by 13% to €2.20 billion, beating the estimate of €2.01 billion.
- Net income was €79 million, an 82% drop year-over-year.
- Adjusted EPS was €0.48, compared to €0.93 the previous year, slightly below the estimate of €0.51.
- R&D expenses totaled €501 million, a reduction of 4.4%, slightly under the estimate of €509.8 million.
- Free cash flow increased by 13% to €533 million.
- Net debt at the end of the period stood at €21.28 billion.
- BASF forecasts adjusted EBITDA for the year to be between €7.3 billion and €7.7 billion, aligning with the estimate of €7.54 billion.
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BASF on Smartkarma
Analysts on Smartkarma, such as Baptista Research, have initiated coverage on BASF SA, providing valuable insights into the company’s strategic moves. In a recent report titled “BASF SA: Initiation of Coverage- China Mega-Site & Local-for-Local Strategy Signal Bold Asian Expansion!”, analysts highlighted BASF’s financial performance for the first quarter of 2025 in a challenging market. The company’s EBITDA before special items met analyst expectations, signaling resilience amidst global market shifts. BASF’s emphasis on local production, as part of its robust manufacturing strategy, was noted as a key move to mitigate the impact of U.S. tariffs, showing a proactive stance against market challenges.
A look at BASF Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 5 | |
| Growth | 2 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
BASF SE, a chemical company operating in various sectors including chemicals, plastics, and agriculture, is poised for a positive long-term outlook based on the Smartkarma Smart Scores. With strong scores in Dividend and Value, indicating stability and attractive financials, BASF is likely to provide consistent returns to its investors. Additionally, its momentum score suggests a favorable market perception and potential for growth. While the Growth score is moderate and the Resilience score is decent, the overall outlook remains positive for BASF.
According to Smartkarma Smart Scores, BASF’s strength in dividends, value, and market momentum positions it well for long-term success. Despite a lower score in growth, its diverse product offerings and market presence provide a solid foundation for sustained performance. Combining resilience with a focus on shareholder returns, BASF showcases a balanced approach towards growth and stability in the chemical industry. Overall, investors may find BASF to be a promising investment option for the future.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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