Stock Performance Holds Steady on the DAX
As of one and a half hours before the close of trading in Frankfurt, BASF shares were priced at €44.03, slightly up from the previous session’s closing price of €43.90. The minor 0.30% uptick places BASF in the middle range of the DAX index, which overall saw a modest increase of 0.16%. Trading volume for the day reached approximately 1.22 million shares, notably lower than the 2.83 million shares exchanged in the previous session.
The current share price remains 15.76% below the company’s 52-week high of €52.27, while the 52-week low stands at €35.50. BASF ranks 20th in the DAX index, supported not only by its market capitalization of €39.18 billion, which gives it a 1.81% weight in the index, but also by its workforce of over 111,000 employees as of 2022.
Second Quarter Financials Show Signs of Strain
BASF has released its financial results for the second quarter of 2025, and the numbers confirm the company’s continued challenges. Revenue dropped by 2% year-over-year, falling to €15.8 billion. More concerning is the sharp decline in profit after taxes, which fell nearly 80% compared to the same period last year.
Key figures for Q2 2025 include:
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Revenue: €15.8 billion
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Adjusted operating profit (EBITDA before special items): €1.77 billion
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Net profit: €108 million
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Net profit attributable to shareholders: €80 million
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Full-year EBITDA forecast for 2025: €7.3 to €7.7 billion
These figures are all below the levels recorded in 2024. Last year’s second-quarter net income reached €470 million—more than four times higher than this year’s figure. The steep drop has been attributed to negative investment results and several one-time effects.
Full-Year Outlook Revised Downward
BASF has lowered its forecast for full-year 2025 EBITDA. Previously, the company projected between €8.0 and €8.4 billion, but the revised range now stands at €7.3 to €7.7 billion. In response, BASF is intensifying its cost-cutting initiatives, particularly at its headquarters in Ludwigshafen, where some production units have already been shut down. CEO Markus Kamieth stated that “good progress” has been made, though further closures have not been ruled out.
Job Security Measures Under Negotiation
Parallel to the cost-cutting program, BASF is negotiating a new agreement with its workers’ council aimed at safeguarding the Ludwigshafen site. The new site agreement, intended to prevent forced layoffs and secure future investments, is expected to replace the current version expiring at the end of the year.
Global Pressures Impact Business Performance
BASF attributes its weakened performance partly to indirect effects of U.S. trade policy. Although the company is not directly targeted by U.S. tariffs, its European clients are. This has increased competitive pressure in the global chemicals market and compounded the impact of inflation, which has hurt both pricing and demand.
Adding to the uncertainty is what BASF describes as the “unpredictable” nature of U.S. political decisions, which further complicates strategic planning.
Chinese Market Offers a Silver Lining
Despite the challenges in Europe and North America, BASF is doubling down on its investment in China. The company expects its new plant in Zhanjiang, southern China, to become fully operational this year. According to CEO Kamieth, “The chemical market is growing exclusively in China.” The facility is not only on schedule but is also expected to come in under budget, offering a critical boost to the company’s long-term growth strategy.
