BASF Significantly Lowers Annual Forecast
BASF has made a surprising announcement by significantly lowering its profit forecast for the year 2025. The EBITDA before special items has been reduced from the originally expected range of 8.0 to 8.4 billion euros to now 7.3 to 7.7 billion euros.
Reasons for the Profit Warning
- Rising Raw Material Prices: Higher costs due to the increase in prices on the global market are hitting BASF hard.
- Slowing Growth: The global economy is weakening, leading to a decline in demand in key markets.
- Geopolitical Uncertainties: New U.S. tariffs and their impact on supply chains are causing additional cost pressure.
- Uncertain Conditions: The second half of the year is characterized by price pressure and subdued demand.
These challenges have put BASF under immense pressure and led to a significant drop in stock prices. Analysts believe that a recovery of the operational situation is not to be expected before 2026.
Overall, BASF is confronted with difficult external economic and geopolitical factors that have depressed expectations for the annual forecast and created a negative market sentiment. The market reaction has been correspondingly negative, as reflected in the losses of the stock.