BASF has reported first-quarter 2026 EBITDA before special items of €2.356bn, a decline of €140m compared with the same period last year.
The company attributed strong currency headwinds and slightly lower prices to offsetting solid volume growth across most of the German chemical group's operating segments.
Sales for the quarter came in at €16.02bn, down from €16.51bn in Q1 2025.
Chief Financial Officer Dr Dirk Elvermann said: "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."
He also noted that, stripping out the adverse currency effects of more than €100m (primarily driven by weakness in the US dollar and the Chinese renminbi), the EBITDA before special items would have matched the prior-year level.
Volume growth was broad-based, with nearly all segments recording increases. The exception was Surface Technologies, where volumes fell, though prices in that segment rose significantly on the back of higher precious metal prices.
Price pressure was evident across Chemicals, Materials, Industrial Solutions, Nutrition & Care and Agricultural Solutions, reflecting continued competitive dynamics in global markets.
Net income rose to €927m from €808m in Q1 2025, with earnings per share increasing to €1.06 from €0.91. EBIT reached €1.261bn, up €102m year-on-year.
Free cash flow was minus €1.375 billion for the quarter — an improvement of €423 million versus Q1 2025 — consistent with the typical seasonal pattern driven by the Agricultural Solutions business.
Looking ahead, BASF maintained its full-year 2026 guidance of EBITDA before special items of between €6.2bn and €7.0bn and free cash flow of €1.5-2.3bn.
However, the company acknowledged in its statement that its macroeconomic assumptions, including GDP growth of 2.7%, a euro/dollar rate of $1.20 and a Brent crude price of $65 per barrel, may prove overly optimistic in light of the evolving conflict in the Middle East, which has introduced uncertainty around energy prices, raw material costs and global supply chains.