BASF Lifts Full-Year Guidance After Strong Q2, But Flags Headwinds
Published on 09/19/2026 at 07:41 | Editorial boerse-global.de
BASF has raised its full-year targets following an earnings-rich second quarter, yet the Ludwigshafen-based chemicals group is simultaneously cautioning that economic uncertainty could blunt the momentum in the months ahead. The stock closed Friday at EUR 51.53, down 1.5% on the day, though it remains up 16% since the start of the year.
The central question for shareholders now is whether the operational recovery can offset the drag from a global industrial slowdown.
Prices and Volumes Drive the Uptick
Group revenue climbed EUR 2.4 billion to EUR 17.2 billion in the second quarter of 2026, lifted in equal measure by an 11.5% rise in prices and a 7.3% increase in sales volumes. That combination fed straight through to the bottom line: EBITDA before special items improved by EUR 854 million year-on-year to EUR 2.4 billion.
The board responded by adjusting its full-year ambitions. For 2026, BASF now targets adjusted EBITDA of between EUR 6.9 billion and EUR 7.7 billion, up from a previous upper bound of EUR 7.0 billion. Even so, management paired the upgrade with a warning, pointing to considerable uncertainties across regional chemicals markets and the broader global economy in the second half, according to dpa.
Divestment Delivers a Multi-Billion Cash Injection
Running alongside day-to-day operations, the DAX-listed group is pressing ahead with its portfolio overhaul. On June 30, BASF completed the sale of its automotive and industrial coatings business to financial investor Carlyle and the Qatar Investment Authority, generating roughly EUR 5.8 billion in cash proceeds. The company retains a 40% stake in the unit, now operating as Surventis.
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The transaction left a clear mark on the interim accounts. After tax, the disposal contributed a special gain of EUR 3.5 billion, pushing quarterly net income to EUR 4.2 billion.
At the same time, BASF is making targeted bets on future-facing fields. Back at the end of the first quarter, its Agricultural Solutions division completed the full acquisition of AgBiTech, a specialist in biological pest control.
LNG Technology Goes Live in Texas
Progress is also visible on the engineering front. Cheniere Energy has brought BASF's Durasorb technology into service at its liquefied natural gas export facility in Corpus Christi, Texas, across several liquefaction trains. The US energy company commissioned the Durasorb LNG-MAX technology on September 9, following an installation that began last year. Completion of the remaining units is scheduled for the end of 2027.
Such operational milestones underscore how the group is strengthening its technology-driven niches in the industrial arena. These business lines are gaining weight with investors as the board simultaneously orchestrates a far-reaching restructuring of the group.
Capital Returns and a Busy Autumn Calendar
Part of the strengthened financial position is flowing back to shareholders. Just over a week ago, the current share buyback tranche came into focus (the stock has since slipped 1.0%). That tranche carries a volume of EUR 1.0 billion and forms part of a broader program totaling EUR 4.0 billion, running through the end of 2028.
The calendar ahead is already set. On October 28, management will present third-quarter 2026 figures, followed by a capital markets day on November 23 and 24, where strategic spin-offs are likely to take center stage.
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Elsewhere in the divestment pipeline, the sale of the silicates business to PQ Corporation is nearing completion. The transaction covers assets at the Düsseldorf-Holthausen site and is expected to close in the second half of 2026.
The carve-out of the agricultural division remains the marquee project in the background. Last Monday, BASF mandated four major banks as global coordinators for an IPO that is slated for completion by mid-2027.
With operational advances at major customers such as Cheniere and a packed corporate events schedule, attention now turns to execution in the current half-year. The combination of portfolio streamlining and upgraded annual targets underpins the chemicals giant's foundation. Whether that buffer proves sufficient hinges largely on how forcefully the economic weakness flagged by the group's leadership feeds through to demand in the coming months.
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