BASF Stock: Double Blow Hits Chemical Giant

BASF shares tumbled 2.3% on Friday, making it the DAX's weakest performer following disappointing second-quarter results and a reduced annual outlook. The Ludwigshafen-based company reported EBITDA before special items of €1.77 billion, meeting analyst expectations but falling significantly below last year's €1.96 billion figure. Revenue declined by 2.1% to €15.77 billion, pressured by negative currency effects and lower chemical prices. More concerning for investors, BASF slashed its 2025 forecast for EBITDA before special items to between €7.3-7.7 billion, down from the previous €8.0-8.4 billion range. The company cited persistent macroeconomic uncertainties, U.S. tariff pressures, and weaker-than-anticipated demand for chemical products as key factors behind the guidance reduction.

Industry-Wide Concerns Mount

The negative sentiment surrounding BASF intensified after competitor Covestro issued its own profit warning, cutting its 2025 EBITDA forecast to €0.7-1.1 billion from €1.0-1.4 billion, citing prolonged economic weakness with no signs of near-term recovery. Analysts fear this industry-wide challenge reflects structural issues affecting all major chemical producers - from demand shortfalls to margin pressure caused by high product availability. Despite these challenges, BASF did report one positive development: free cash flow increased to €0.53 billion in Q2, up from €0.47 billion year-over-year. The company's complete half-year report is scheduled for release on July 30, 2025.

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Source StockWorld