11 Billion Euro Cut BASF Slashes 2025 Outlook as Q2 Earnings Plunge and Strategic Moves Accelerate

BASF reported Q2 2025 sales of €15.77 billion, down 2.1% year-on-year amid falling prices and negative currency effects across all divisions, especially chemicals. The company’s EBITDA before special items fell 9.7% to €1.77 billion, while EBIT dropped 5.8% to €490 million. Net income plunged 81.4% to just €80 million, compared to €430 million a year ago.

Citing ongoing macroeconomic and geopolitical uncertainty, BASF has sharply revised its 2025 EBITDA guidance to €7.3–7.7 billion, up to €1.1 billion lower than its previous forecast. The main pressure: persistent margin compression in upstream products and ample market supply.

Despite the downturn, BASF accelerated two major strategic projects:

The company has completed the acquisition of Domo’s 49% stake in Alsachimie, giving BASF full ownership of the Chalampé PA6,6 intermediate plant in France. This move strengthens BASF’s backward integration, supply security, and value chain efficiency in polyamide 6,6.

Meanwhile, BASF finalized the sale of its Styrodur® XPS insulation business—along with the brand—to BACHL, a leading German insulation producer and long-term BASF partner. This shift allows BASF to focus on its EPS brands, Neopor® and Styropor®, with plans to boost Neopor® capacity in Ludwigshafen by 50,000 tons to 250,000 tpa by 2027.

These moves signal BASF’s determination to optimize its portfolio and reinforce its position across key segments, even as it weathers a tough business climate.