BASF reports strong third quarter, raises earnings forecast

Ludwigshafen, Germany (Oct. 28, 2026) — Chemical company BASF reported a 14% increase in third-quarter sales and a 15% rise in earnings before special items, citing stronger performance across its core businesses.

The company reported sales of 16.4 billion euros ($19.2 billion) for the third quarter of 2026, compared with 14.3 billion euros during the same period last year. Earnings before interest, taxes, depreciation and amortization (EBITDA) before special items increased to 1.6 billion euros, up from 1.4 billion euros a year earlier.

BASF attributed the sales growth primarily to a 12% increase in prices and a 2% rise in sales volumes. Higher prices in its Chemicals, Materials, Surface Technologies and Industrial Solutions segments contributed significantly to the results.

All four of the company’s core businesses contributed to the increase in earnings, according to BASF.

“The strong year-to-date performance of our core businesses gives us confidence to narrow our forecast range for EBITDA before special items upward,” said BASF Chairman Markus Kamieth in announcing the results.

Following the strong quarter, BASF raised the lower end of its full-year 2026 earnings forecast. The company now expects EBITDA before special items of between 7.4 billion and 7.8 billion euros, compared with its previous forecast of 6.9 billion to 7.7 billion euros.

Despite the improved earnings outlook, some areas of the business continued to face challenges. Agricultural Solutions experienced declining sales volumes and slightly lower prices, while Surface Technologies reported lower earnings compared with the previous year.

The company also reported third-quarter net income of 155 million euros, down from 172 million euros during the same period in 2025. Earnings before interest and taxes (EBIT) fell to a loss of 98 million euros, compared with a profit of 232 million euros a year earlier.

BASF said the decline in EBIT was partly associated with higher depreciation and amortization expenses, including a 318 million euro impairment in its Monomers division. Special items totaling 437 million euros in expenses also affected quarterly results. Those costs were primarily related to restructuring measures, particularly at the company’s Ludwigshafen site, and a legal settlement involving its Care Chemicals division.

Operating cash flow totaled 1.1 billion euros, a decrease of 275 million euros from the previous year. BASF attributed the decline largely to increased inventory costs resulting from higher raw material prices.

Looking ahead, the company maintained its 2026 forecasts for free cash flow and carbon dioxide emissions. Free cash flow is expected to range from 1.5 billion to 2.3 billion euros, while annual CO2 emissions are projected to fall between 17.2 million and 18.2 million metric tons.

BASF cited continued uncertainty surrounding geopolitical developments and the global economy as factors affecting its business outlook.