By: ICN Bureau
Last updated : April 30, 2026 11:35 am
EBITDA before special items reaches €2.4 billion in Q1 2026 (Q1 2025: €2.5 billion)
BASF Group recorded solid volume growth in the first quarter of 2026, with strong performance in China offset by volatility in the Middle East starting in March.
“In this demanding market environment, BASF demonstrated resilience and achieved EBITDA before special items of €2.4 billion compared with €2.5 billion in the prior-year quarter,” said Chief Financial Officer Dr. Dirk Elvermann at the presentation of the quarterly figures in advance of the BASF Annual Shareholders’ Meeting taking place today at the Congress Center Rosengarten in Mannheim, Germany. Overall, sales declined slightly due to strong adverse currency effects and slightly lower prices.
In a conference call for analysts and investors, Elvermann said: “Disregarding the currency headwinds of more than €100 million, EBITDA before special items would have reached the level of the prior-year quarter.”
Sales and earnings development in the first quarter of 2026
Sales in Q1 2026 fell to €16,020 million, a decline of €488 million (or approx. 3%) year-over-year, largely due to unfavorable currency impacts—specifically from the USD and CNY—impacting all business segments.
Intense competition drove price declines across Chemicals, Materials, Industrial Solutions, Nutrition & Care, and Agricultural Solutions, though sales volumes grew in nearly all these areas. Conversely, higher precious metal prices significantly boosted prices in Surface Technologies, despite lower volume growth. "Other" segments saw a significant decline in sales.
Compared with the first quarter of 2025, income from operations before depreciation, amortization and special items (EBITDA before special items) decreased by €140 million to €2,356 million. The Chemicals, Agricultural Solutions and Nutrition & Care segments recorded declines in earnings, whereas EBITDA before special items improved in the Surface Technologies and Materials segments. Earnings in the Industrial Solutions segment matched the prior-year level.
First-quarter earnings in Other were significantly below the prior-year figure. The EBITDA margin before special items decreased to 14.7% versus 15.1% in the prior-year quarter. EBITDA amounted to €2,186 million, following €2,070 million in the prior-year period. Special items in EBITDA amounted to minus €170 million in the first quarter of 2026. Special charges were incurred primarily in connection with the ongoing cost savings programs, particularly for the program focused on the Ludwigshafen site.
At €1,261 million, EBIT was up by €102 million over the level of the prior-year quarter. Depreciation and amortization included in EBIT amounted to €925 million (prior-year quarter: €910 million). Net income amounted to €927 million (prior-year quarter: €808 million). Earnings per share were thus €1.06 in the first quarter of 2026 (prior-year quarter: €0.91).
Development of cash flows in first quarter 2026
In the first quarter of 2026, cash flows from operating activities saw a €185 million year-over-year improvement to a deficit of €797 million. Net income rose by €119 million, driven largely by a €316 million increase in non-cash equity-accounted income. This positive result was primarily fueled by significantly higher dividends from equity-accounted shareholdings, particularly from Wintershall Dea GmbH.
Free cash flow improved by €423 million compared with the prior-year quarter to minus €1,375 million, due in part to lower payments made for intangible assets and property, plant and equipment. BASF’s free cash flow is usually negative in the first quarter and improves over the course of the year. This is primarily attributable to the seasonal nature of the Agricultural Solutions business.
BASF Group outlook for 2026
Given the high level of uncertainty about how the conflict in the Middle East will play out, BASF is not changing its assumptions at this time regarding the global economic environment in 2026, which were presented in the BASF Report 2025:
* Growth in gross domestic product: +2.7 percent
* Growth in industrial production: +2.3 percent
* Growth in chemical production: +2.4 percent
* Average euro/dollar exchange rate of $1.20 per euro
* Average annual oil price (Brent crude) of $65 per barrel