Antwerp, Belgium, October 2, 2025 — One year after launching its “Winning Ways” corporate strategy, BASF has reaffirmed its 2028 financial targets and provided a detailed Capital Market Update, emphasizing portfolio optimization, disciplined capital allocation, and sustainable growth across both standalone and core businesses.
“Over the past year, we’ve demonstrated that our strategic priorities are on the right track,” said Dr. Markus Kamieth, Chairman of the Board of Executive Directors of BASF SE. “Our focus on performance culture, portfolio steering, and efficient capital allocation continues to position BASF for long-term profitable growth.”
Progress in Standalone Businesses
Dr. Kamieth presented updates on four of BASF’s standalone business units, each contributing to the company’s transformation and value creation goals:
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Environmental Catalyst and Metal Solutions (ECMS) — BASF plans to retain ownership of ECMS, which generated €7.0 billion in 2024 sales, viewing itself as the best operator for the business. The unit is expected to deliver €4 billion in cumulative cash flow from 2024 to 2030.
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Battery Materials — With €0.6 billion in 2024 sales, BASF has reduced fixed costs and capital expenditures while strengthening its customer base through agreements with partners like CATL. The company is exploring further value chain collaboration in energy storage solutions.
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Coatings — BASF has completed the sale of its Brazilian decorative paints business to Sherwin-Williams for $1.15 billion, effective October 1, 2025. The company is now evaluating strategic options for its automotive OEM coatings, refinish coatings, and surface treatment divisions, which contributed €3.8 billion in 2024 sales. A decision is expected by Q4 2025.
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Agricultural Solutions — BASF is preparing for IPO readiness in 2027 for a minority share listing, following strong progress in legal entity separation and ERP system implementation. The division recorded €9.8 billion in 2024 sales.
Strong Financial Foundation and Shareholder Commitment
BASF reaffirmed its financial guidance for 2028, aiming for:
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EBITDA before special items: €10–12 billion under mid- to upcycle conditions
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Cumulative free cash flow (2025–2028): Over €12 billion
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ROCE (Return on Capital Employed): Around 10%
The company remains committed to attractive shareholder returns, confirming an annual dividend of at least €2.25 per share and €4 billion in share buybacks between 2027 and 2028 — potentially starting earlier, depending on the Coatings transaction outcome.
“Our successful divestments and disciplined capital management enable us to strengthen our balance sheet and accelerate share buybacks,” said Dr. Dirk Elvermann, BASF’s Chief Financial Officer. “We will continue optimizing our portfolio while creating long-term value for shareholders.”
Disciplined Capital Allocation and Project Efficiency
BASF is applying a disciplined investment approach, reducing planned payments for property, plant, and equipment as well as intangibles between 2025 and 2028 from €17 billion to €16 billion.
A major highlight is the Zhanjiang Verbund site in southern China — progressing on schedule and below budget. Total capital expenditures for the site (2019–2028) have been reduced by €1.3 billion, now totaling approximately €8.7 billion, with most plants expected to start up by the end of 2025.
Integrated Value Chains as BASF’s Core Strength
BASF’s core businesses — Chemicals, Materials, Industrial Solutions, and Nutrition & Care — generated €40.3 billion in 2024 sales. These segments benefit from deeply integrated value chains, enabling BASF to create synergies from upstream to downstream operations across product lines like ethylene oxide and polyurethanes.
“This integration, supported by advanced process technologies, gives BASF a competitive edge in cost efficiency, carbon footprint, and product innovation,” said Dr. Kamieth. “By closing non-performing plants, launching new high-performance units, and pursuing strategic options, we expect to boost core business earnings by around €400 million by 2028.”
Summary
With its Winning Ways strategy, BASF is solidifying its position as a global leader in the chemical industry, balancing portfolio optimization, sustainability, and shareholder value creation. The company’s integrated production model, disciplined investment approach, and strong execution pipeline underline its confidence in achieving its 2028 growth and profitability goals.
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