BASF lowers profit forecast: chemical company struggles with crisis!

BASF lowers profit forecast: chemical company struggles with crisis!

In the world of chemistry, not everything that glitters is gold. The chemical company BASF, which has its headquarters in Ludwigshafen and is considered the world's largest in its industry, has significantly reduced its profit forecast for 2025. As the East Frisian news report, the new target for adjusted Ebitda is between 7.3 and 7.7 billion euros, after previously aiming for 8.0 to 8.4 billion euros. For comparison: In the previous year, the company was able to generate almost 7.9 billion euros, which is now considered insufficient for the coming months.

The reasons for this adjustment are complex. High energy prices, ongoing trade conflicts and a weak economic environment are putting pressure on the industry. The second quarter of 2025 brought an operating profit of 1.77 billion euros, which was in line with analysts' expectations but represents a decrease compared to the previous year's figure of 1.96 billion euros. Sales also fell by 2.1% to 15.77 billion euros, mainly due to lower prices for basic chemicals. The result for shareholders was only 80 million euros, compared to 430 million euros in the previous year, which not only disappointed investors but also failed to meet market expectations.

Rivalry and insecurities

The chemical industry is struggling with weak demand and, in some cases, sharply fallen prices. These problems are further fueled by geopolitical uncertainties, particularly US President Donald Trump's tariff policies, which further complicate trading conditions. BASF has already taken measures to work more cost-efficiently and remain competitive, particularly at its headquarters in Ludwigshafen, where comprehensive savings programs are being implemented.

The outlook for the global chemical industry is also mixed. According to information from BASF The global chemical industry (excluding pharmaceuticals) is forecast to grow by 3.0% in 2025, down from 2024's 3.9%. In advanced economies, only weak growth of 0.8% is expected, while emerging markets, especially in Asia, will fare slightly better.

Conclusion and outlook

Full numbers and details for the second quarter will be published on July 30, 2025. Analysts are eagerly waiting to see whether BASF can counteract the current market development with its cost-cutting measures. Pressure is high in the chemical industry and the coming months will be crucial in setting the course for positive developments.