The news that BASF surprised with strong quarterly figures and that the stock subsequently rose by 5% does not correspond to the current facts. The recently released figures for the second quarter of 2025 paint a more nuanced picture and raise some questions about future developments.
Overview of the Quarterly Figures
BASF has reported preliminary figures for the second quarter of 2025, showing a revenue decline of 2.1% to €15.77 billion compared to the previous year. This development is mainly due to negative currency effects and fallen prices in the chemicals segment. However, in some areas, a slight increase in production volumes was observed.
Profit Plunge and Revised Forecasts
The profit development is even more disappointing: Net profit collapsed from €430 million last year to just about €80 million – a dramatic drop of over 80%. Due to these disappointing profit figures, BASF significantly lowered its profit forecast for the entire year. The adjusted EBITDA target was reduced by around €700 million to a maximum of €7.7 billion.
Reactions in the Stock Market
As expected, investors appeared more cautious than optimistic. Stock market reports suggest more of a restrained behavior rather than an upward trend for the stock by 5%. The disappointing results and the correction of profit forecasts did not provide a positive boost to the stock price.
The chemicals industry as a whole is facing various challenges. While there are positive indications such as volume growth in the Agricultural Solutions and Surface Technologies segments, the sector remains burdened by global economic issues such as weak demand and currency problems.
In conclusion, it remains to be said that cautious assessments by long-term investors may be more appropriate to navigate the existing uncertainties.