BASF Lowers Profit Forecast for 2025
The world’s largest chemicals company, BASF, has recently lowered its profit forecast for the year 2025. The new forecast indicates an EBITDA before special items between 7.3 and 7.7 billion euros, compared to the previous estimate of 8.0 to 8.4 billion euros. This represents a reduction of up to 900 million euros compared to the original expectation.
Reasons for the Adjustment
- Ongoing macroeconomic uncertainties with an expected slower global GDP growth.
- Geopolitical uncertainties affecting the business environment.
- Impairments due to new U.S. tariffs impacting operational activities.
- Stagnating industrial production and declining margins in the upstream business.
In the second quarter of 2025, BASF achieved an operating profit of around 1.77 billion euros, meeting analyst consensus. However, the EBIT of approximately 0.49 billion euros was significantly below expectations.
This profit warning is significant for investors as it signals a challenging economic situation for BASF and may impact stock price development. Other large chemical companies in Germany, such as Covestro, have also lowered their profit forecasts, highlighting the overall economic weakness.
In summary, BASF is lowering its profit forecast due to global economic weakness, geopolitical risks, and trade policy uncertainties. This illustrates the difficult environment in which the company operates and serves as an important indicator for investors.