Profit Warning and Results
- Profit Decline: BASF reported a net profit of 0.08 billion euros in the second quarter of 2025, significantly below the average analyst expectations of 0.41 billion euros.
- EBITDA Forecast: The forecast for EBITDA before special items has been lowered from 8.0 to 8.4 billion euros to 7.3 to 7.7 billion euros for 2025.
- Revenue Decline: Revenue in the second quarter amounted to 15.77 billion euros, a decline of 2.1 percent compared to the same quarter last year. This was below the expectations of 15.80 billion euros.
Reasons for the Profit Warning
- Macroeconomic Uncertainties: Ongoing geopolitical uncertainties and the weakening global economy are putting pressure on the chemical industry.
- U.S. Tariffs: The announced U.S. tariffs also contribute to the uncertainty.
- Currency Effects and Prices: Negative currency effects and lower prices, particularly in the Chemicals segment, have favored the revenue decline.
Outlook and Cash Flow
- Cash Flow: Despite the profit warning, BASF continues to forecast a free cash flow between 0.4 and 0.8 billion euros for 2025.
- Market Demand: The market demand for chemical products is expected to rise less sharply than previously anticipated in 2025.
Relevance for Private Investors and Retail Investors
- DAX Company: As a DAX company, BASF has a direct impact on the market, making its developments relevant for private and retail investors.
- Investment Decisions: The profit warning and results could influence investment decisions as they indicate a difficult market situation.
Overall, the chemical industry is facing challenges that are reflected in the results of BASF and other companies like Covestro.