By: ICN Bureau
Last updated : October 28, 2026 2:27 pm
Group Sales reached €16.4 billion, jumping 14% from the €14.3 billion recorded in the same period last year. This outpaced the €15.67 billion projected by analysts
German chemicals giant BASF SE has raised its full-year earnings outlook for the second time this year, fueled by a strong surge in pricing power and recovering sales volumes during the third quarter.
The world's largest chemical producer announced on Wednesday that it now expects its 2026 full-year EBITDA before special items to land between €7.4 billion and €7.8 billion ($8.2 billion to $8.7 billion). This marks a notable upgrade from the prior target range of €6.9 billion to €7.7 billion provided in July. The upward revision signals resilient operational momentum despite persistent macroeconomic headwinds and high energy costs plaguing the broader European industrial landscape.
Strong Third-Quarter Performance Tops Forecasts
The updated guidance comes on the heels of third-quarter results that comfortably outpaced financial market expectations. BASF reported an adjusted operating profit (EBITDA) of €1.64 billion for the quarter, reflecting a 15% increase compared to the same period last year. This performance cleared the analyst consensus estimate of €1.50 billion by approximately 10%.
Overall revenue for the group climbed 14% year-on-year to reach €16.4 billion. According to a corporate statement, the growth was overwhelmingly driven by a 12% increase in prices, supplemented by a 2% expansion in sales volumes. The company’s ability to implement strict pricing strategies helped mitigate volatile raw material costs and sustained margins across most of its primary manufacturing segments.
Geopolitical Factors Drive European Demand
The company's performance was unexpectedly supported by recent geopolitical events. Operational disruptions and shipping constraints surrounding the closure of the Strait of Hormuz reshaped trade routes, leading to localized supply shortages. This disruption incentivized domestic buyers to turn heavily toward European chemical manufacturers, driving a sudden surge in demand for BASF’s core product lines.
This demand spike helped insulate the Ludwigshafen-based company from intensifying export competition originating from China and other low-cost Asian markets.
"The strong year-to-date performance of our core businesses gives us confidence to narrow our forecast range for EBITDA before special items upward," noted Dr. Markus Kamieth, Chairman of the Board of Executive Directors at BASF.
Segment Mixed Bags and Strategic Focus
While BASF's core industrial, automotive paint, and consumer care units contributed gains, the company’s agricultural solutions division continued to struggle. The agricultural segment suffered a sharp 20% year-on-year decline in sales, weighed down by weak seasonal demand and pricing pressures in global crop protection markets. To optimize its corporate structure, BASF is currently advancing plans for a separate Frankfurt listing of the agricultural unit by mid-2027.
Simultaneously, the investor spotlight remains fixed on the group's aggressive expansion strategy. BASF is actively pursuing a high-profile takeover of German specialty chemicals competitor Evonik Industries AG. Market sources indicate that BASF recently boosted its takeover bid to more than €11 billion, up from a previous €10.3 billion offer that Evonik management had rejected as insufficient.
Unchanged Cash Flow and Climate Mandates
Despite the volatile macroeconomic climate, BASF maintained its full-year free cash flow forecast at €1.5 billion to €2.3 billion. The group also reconfirmed its existing sustainability commitments, leaving its annual Scope 1 and Scope 2 CO₂ emissions targets unchanged at a maximum of 18.2 million metric tons.
The company's macro model for the remainder of 2026 anticipates global GDP growth of 2.5% and chemical production expansion of 1.8%, calculated under an assumed average crude oil price of $80 per barrel.