BASF's Earnings, Sales Expected to Drop -- Earnings Preview

Dow Jones10-28

By Billy Gray

 

BASF is scheduled to report results for the third quarter on Wednesday. Here is what you need to know.

 

SALES FORECAST: The German chemical giant is expected to post sales of 15.19 billion euros ($17.69 billion), according to consensus estimates provided by the company in partnership with Vara Research. BASF reported sales of 15.74 billion euros for the same period last year.

 

EARNINGS FORECAST: BASF is expected to report earnings before interest, taxes, depreciation, amortization and special items--the company's preferred metric--of 1.50 billion euros. For last year's third quarter, it reported an Ebitda before special items of 1.62 billion euros.

 

Shares in BASF rose 1.3% during the third quarter and were up 2.2% since the start of the year through Monday's close.

 

WHAT TO WATCH

 

--The company in July lowered its 2025 guidance, citing geopolitical uncertainty and how it complicated estimating customer demand, as weakness in its chemicals segment weighed on its earnings. Investors will consider to what extent those challenges have eased. "The earnings challenges are well understood and the turning point in earnings is hard to identify at this point" Morgan Stanley analysts Thomas P. Wrigglesworth and Lisa H. De Neve said. Stimulus measures in Germany and a normalization in U.S. supply chains as tariff uncertainty eased should provide a more favorable backdrop, the analysts said.

--The company has previously said proceeds from a recent deal to sell its coatings business could enable it to bring forward the start of share buybacks, currently due to begin in 2027. BASF earlier this month agreed to sell a majority stake in its coatings business to Carlyle for 5.8 billion euros, but said it would retain a 40% stake in the business.

 

Write to Billy Gray at william.gray@wsj.com

 

(END) Dow Jones Newswires

October 28, 2025 09:07 ET (13:07 GMT)

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