- BASF forecasts its adjusted EBITDA for 2025 to be between €8 billion and €8.4 billion, slightly below the estimated €8.39 billion.
- In the fourth quarter, adjusted EBIT was €554 million, marking a significant 90% increase year-over-year, but slightly below the expected €560.4 million.
- Fourth quarter adjusted EBITDA reached €1.57 billion, up 19% year-over-year, but below the estimate of €1.64 billion.
- The Chemicals segment had an adjusted EBITDA of €103 million, up 8.4%, yet below the expected €222 million.
- Nutrition and Care showed a 29% increase in adjusted EBITDA to €168 million, surpassing the estimate of €138.9 million.
- The Materials segment saw a 3.9% decline in adjusted EBITDA to €365 million, underperforming the estimate of €439.6 million.
- Industrial Solutions recorded a 17% drop in adjusted EBITDA to €208 million, below the predicted €281.4 million.
- Surface Technologies saw an 8.2% decrease in adjusted EBITDA to €312 million, slightly above the estimate of €308.1 million.
- Agricultural Solutions experienced a substantial 78% increase in adjusted EBITDA to €394 million, exceeding expectations of €255.5 million.
- Total sales for the quarter were €15.86 billion, nearly matching the previous year and slightly above the estimate of €15.84 billion.
- Revenue from Chemicals increased 3.9% year-over-year to €2.52 billion, below the estimated €2.64 billion.
- Materials sales fell 3.2% to €3.24 billion, not meeting the anticipated €3.58 billion.
- Industrial Solutions sales grew 0.5% to €1.88 billion, but did not reach the estimated €1.98 billion.
- Surface Technologies sales decreased by 9.4% to €3.18 billion, slightly above the prediction of €3.15 billion.
- Nutrition & Care sales dropped 0.5% to €1.62 billion, falling short of the €1.66 billion estimate.
- Agricultural Solutions sales rose 14% to €2.53 billion, surpassing the forecast of €2.15 billion.
- Despite a net loss of €786 million, this represents a 50% improvement year-over-year.
- Adjusted EPS was €0.59 compared to a loss per share of €0.18 last year, exceeding the €0.35 estimate.
- R&D expenses reduced by 9.1% to €541 million, still higher than the estimate of €513.1 million.
- Free cash flow for the quarter was €1.17 billion, a 48% decrease, aligning with expectations.
- Net debt at the end of the period was €18.78 billion.
- The 2024 dividend per share was reduced to €2.25 from €3.40 the previous year, slightly below the €2.33 estimate.
- BASF predicts most segments, except Chemicals, will drive earnings growth in 2025.
- The company forecasts free cash flow for 2025 between €0.4 billion and €0.8 billion.
- By the end of 2024, BASF achieved an annual cost reduction of approximately €1 billion.
- Cumulative one-time costs for cost savings programs reached around €900 million by the end of 2024.
- BASF aims to distribute at least €12 billion to shareholders from 2025 to 2028, with a minimum annual dividend of €2.25 per share or around €2 billion per year.
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
Based on the Smartkarma Smart Scores for BASF, the company has a positive long-term outlook. With high scores in Dividend and Value, BASF demonstrates strong financial stability and commitment to shareholders through consistent dividend payments and a solid value proposition. Additionally, its Momentum score suggests that the company is showing positive market momentum.
BASF, a chemical company with a diversified portfolio across various sectors, displays resilience and strength in the market. While its Growth score is moderate, the company’s focus on providing innovative solutions in areas such as chemicals, plastics, and agriculture positions it well for future development and expansion. Overall, BASF’s strong performance in key areas bodes well for its continued success in the industry.
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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