BASF SE (BASFn.DE) 2Q26 full release highlights structural transformation, focus on cash returns deleveraging, and rising pr...

Equity Research 29 July 2026 | 10:01AM GST

BASF SE (BASFn.DE): 2Q26 full release highlights structural transformation, focus on cash returns/deleveraging, and rising

Today (July 29) BASF released its full 2Q26 with EBITDA (b.s.i) coming in at €2,449mn Georgina Fraser, Ph.D. | (+18% vs. Vara Consensus - updated July 7th) with sales at €17,206mn (+5% vs. Vara Goldman Sachs International Consensus). The company had already announced preliminary results on July 15, and Marcus von Scheele today’s results were in-line with the previously disclosed numbers (see here). | Goldman Sachs International Divisions: On the volumes side, the biggest differences to consensus numbers were Thomas Ward in the Chemicals division (+21% vs. consensus at +9%) and Nutrition & Care (+12% | vs. consensus at +1%). Volumes beat consensus expectations across all divisions. Goldman Sachs International Pricing at group level was below consensus expectations, the differences came Gabriel Simoes | mostly from Materials (+13% vs. consensus of +21%) as well as Nutrition & Care (-2% Goldman Sachs International vs. consensus at +2%) and Agricultural Solutions (-3% vs. consensus at +1%). At the EBITDA level, Materials and Industrial Solutions were the main beats to consensus numbers (+28%/29% vs. consensus). The Corporate/Other division came in better than expectations on strong commodity trading results. Chemicals and Surface Technologies were the negative surprises with Chemicals margins -486bps below consensus expectations. All in, volumes came in stronger than expectations (+7.3% vs. consensus at +2.0%) while prices were below estimates (11.5% vs consensus at +12.7%).

Cash: Operating cash flow in the quarter was €524mn, down from €1,585mn in 2Q25 driven by higher receivables and inventory. The implied cash conversion (CFO/adj. EBITDA) for the quarter was 21% vs. 89% in 2Q25. Operating cash flow was also impacted by ~€200mn of cash transformation spending in relation to restructuring measures and new ERP systems in Agricultural Solutions. BASF expect higher earnings and lower capital expenditures to offset the higher working capital buildup for the full-year.

Outlook: BASF had already altered its FY26 guidance when it released its preliminary results - no incremental changes were made. EBITDA guidance stands at €6.9-7.7bn (from €6.2-7.0bn prior to the pre-release) vs. Vara Consensus at €7.3bn and GSe at €8.0bn, while free cash flow guidance is at €1.5bn-2.3bn vs. Vara Consensus €2.3bn and GSe at €1.36bn.

The conference call will be held at 07:30am UK time.

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Goldman Sachs BASF SE (BASFn.DE)

Exhibit 1: BASF 2Q26 Actuals vs. GSe and Consensus Volume and Price on Visible Alpha Consensus Data; Rest on Vara Consensus BASF 2Q26 Results Review

Interim results Actual Cons Actual vs. GSe Actual vs. Actual Actual chg yoy chg qoq in EUR mn 2Q26 2Q26 cons Q226E GS Q225 Q126 P&L items (cont.) Chemicals 3,595 3,324 8.2% 2,906 23.7% 2,502 43.7% 2,662 35.0% Materials 3,790 3,843 -1.4% 4,269 -11.2% 3,240 17.0% 3,238 17.0% Industrial Solutions 2,328 2,283 2.0% 2,531 -8.0% 2,160 7.8% 2,092 11.3% Surface Technologies 2,625 2,445 7.4% 2,082 26.1% 2,355 11.5% 2,409 9.0% Nutrition & Care 1,709 1,675 2.0% 1,600 6.8% 1,618 5.6% 1,669 2.4% Agricultural Solutions 2,210 2,146 3.0% 2,288 -3.4% 2,198 0.5% 3,104 -28.8% Corporate/Other % 787 20.5% 715 32.6% 849 11.7% Sales 17,206 16,462 4.5% 16,462 4.5% 14,788 16.4% 16,023 7.4% Chemicals % 494 -23.7% 209 80.4% 233 61.8% Materials % 693 14.3% 408 94.1% 511 55.0% Industrial Solutions % 448 -3.1% 307 41.4% 361 20.2% Surface Technologies % 148 -22.2% 172 -33.1% 275 -58.2% Nutrition & Care 204 192 6.3% 205 -0.7% 196 4.1% 192 6.3%…