BASF Slashes 2025 Outlook Q2 Net Profit Plummets 81 Percent as Sales and Earnings Drop

BASF has sharply revised down its full-year 2025 earnings forecast after releasing disappointing preliminary results for the second quarter. According to a July 11 statement, the company blamed escalating US tariffs and global geopolitical tensions for weakening demand in the chemicals sector.

Second-quarter sales fell by 2.1% year-on-year to €15.77 billion, impacted by adverse currency effects and lower prices, particularly in the core chemicals division. Despite modest volume growth in agriculture and surface technologies, overall gains were limited.

Adjusted EBIT before special items came in at €1.77 billion, down from €1.96 billion a year earlier, mainly due to profit declines in chemicals and “other” segments. Net profit plunged to just €80 million, a dramatic drop from €430 million last year, hit by higher tax expenses and lower income from equity investments.

For 2025, BASF now expects adjusted EBIT to range between €7.3–7.7 billion—well below its previous €8.0–8.4 billion estimate and even lower than 2024’s €7.9 billion result. The group also cut its global chemicals production growth forecast to 2.5–3.0% and now sees Brent crude averaging $70 per barrel, down from $75.

BASF cautioned that ongoing economic and political uncertainty could continue to weigh on global GDP growth and market demand through 2025.