Germany's BASF Q2 net income surges on coatings sale

BASF SE

29/07/2026 06:15

Overview
Germany chemicals producer's Q2 sales rose 16% yr/yr on higher prices and volumes
Q2 net income surged, driven by €3.5 bln gain from Coatings business sale
Company raised 2026 EBITDA before special items outlook to €6.9-7.7 bln

Outlook
BASF raises 2026 EBITDA before special items forecast to €6.9 bln-€7.7 bln
Company maintains 2026 free cash flow outlook at €1.5 bln-€2.3 bln
BASF lowers 2026 global GDP growth assumption to 2.5% from 2.7%

Result Drivers
PRICE AND VOLUME GAINS - Higher prices (up 11.5%) and increased volumes (up 7.3%) drove sales growth in nearly all segments
SEGMENT MARGINS - Significant earnings increase in Materials, Chemicals and Industrial Solutions segments due to improved contribution margins
RESTRUCTURING AND PORTFOLIO CHANGES - Earnings benefited from restructuring, cost reductions, and the sale of the Coatings business

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
 
EUR 17.20 bln
 
Q2 Net Income
 
EUR 4.20 bln
 
Q2 EBITDA
 
EUR 2 bln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 13 "strong buy" or "buy", 7 "hold" and 6 "sell" or "strong sell"
The average consensus recommendation for the diversified chemicals peer group is "buy."
Wall Street's median 12-month price target for BASF SE is €55.50, about 13.3% above its July 28 closing price of €48.97
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 20 three months ago

Reuters Recommended Reads
July 29 - BASF says plant utilization rates at Ludwigshafen site have improved
July 29 - Solvay posts second-quarter core profit beat
July 28 - PPG Q2 revenue beats estimates on strength in aerospace, Latin America coatings businesses

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)