We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
BASFY's Preliminary Q2 Sales Rise, FY26 Earnings Outlook Raised
Read MoreHide Full Article
Key Takeaways
BASFY's preliminary Q2 sales rose 16% YoY to EUR 17.2B, while EBITDA before special items reached EUR 2.4B.
BASFY raised its 2026 EBITDA before special items outlook to EUR 6.9-7.7 billion from EUR 6.2-7 billion.
BASFY's net income surged to EUR 4.1B from EUR 79M, aided by a EUR 3.9B pre-tax gain on its coatings sale.
BASF SE (BASFY - Free Report) reported strong preliminary second-quarter 2026 figures, with sales rising 16% year over year to €17.2 billion, driven by higher prices and volumes.
EBITDA before special items increased to an expected €2.4 billion from €1.6 billion a year ago. The improvement was supported by stronger earnings across most business segments, particularly Materials, Industrial Solutions and Agricultural Solutions.
BASFY Group's EBITDA is expected to reach €2 billion in the second quarter and increase significantly from €1.3 billion reported in the prior-year quarter. EBITDA was impacted by special items, primarily transformation costs related to ongoing cost-saving initiatives and the implementation of new ERP systems.
EBIT before special items also rose sharply to an expected €1.5 billion, above both the prior-year level of €0.7 billion and analysts' estimates.
Net income surged to an expected €4.1 billion compared with €79 million in the year-ago quarter, mainly driven by a €3.9 billion pre-tax gain from the completed sale of its coatings business to Carlyle. The expected tax expense associated with the transaction is a mid-triple-digit million-euro amount.
BASFY expects free cash flow of negative €0.2 billion in the second quarter of 2026 against positive €0.5 billion in the year-ago quarter, mainly due to higher working capital requirements driven by increased raw material prices. The expected free cash flow reflects estimated cash flows from operating activities of €0.5 billion, offset by capital expenditures of €0.7 billion on property, plant, equipment and intangible assets.
BASFY raised its full-year 2026 outlook for EBITDA before special items to €6.9-€7.7 billion, up from the previous forecast of €6.2-€7 billion, reflecting stronger-than-expected business performance. The company maintained its free cash flow guidance of €1.5-€2.3 billion, while noting that higher raw material prices continue to increase working capital requirements.
Per BASFY, the outlook for the global economy and regional chemical markets in the second half of 2026 remains uncertain, largely depending on the outcome of U.S.-Iran negotiations and continued access to the Strait of Hormuz. The company noted that a prolonged disruption of the trade route could hurt economic activity.
Shares of BASFY are up 10.9% over the past year against the industry’s 2.8% decline.
The Zacks Consensus Estimate for CSW’s current-year earnings stands at $12.52 per share, implying a 20.6% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise being 3.8%.
The Zacks Consensus Estimate for IDR’s current-year earnings is pegged at $1.52 per share, implying a 33.3% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise being 68.7%.
The Zacks Consensus Estimate for TX’s current-year earnings is pegged at $6.13 per share, indicating a 182.5% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, with the average surprise being 3.5%.
View the Zacks #1 Rank List
Image: Bigstock
BASFY's Preliminary Q2 Sales Rise, FY26 Earnings Outlook Raised
Key Takeaways
BASF SE (BASFY - Free Report) reported strong preliminary second-quarter 2026 figures, with sales rising 16% year over year to €17.2 billion, driven by higher prices and volumes.
EBITDA before special items increased to an expected €2.4 billion from €1.6 billion a year ago. The improvement was supported by stronger earnings across most business segments, particularly Materials, Industrial Solutions and Agricultural Solutions.
BASFY Group's EBITDA is expected to reach €2 billion in the second quarter and increase significantly from €1.3 billion reported in the prior-year quarter. EBITDA was impacted by special items, primarily transformation costs related to ongoing cost-saving initiatives and the implementation of new ERP systems.
EBIT before special items also rose sharply to an expected €1.5 billion, above both the prior-year level of €0.7 billion and analysts' estimates.
Net income surged to an expected €4.1 billion compared with €79 million in the year-ago quarter, mainly driven by a €3.9 billion pre-tax gain from the completed sale of its coatings business to Carlyle. The expected tax expense associated with the transaction is a mid-triple-digit million-euro amount.
BASFY expects free cash flow of negative €0.2 billion in the second quarter of 2026 against positive €0.5 billion in the year-ago quarter, mainly due to higher working capital requirements driven by increased raw material prices. The expected free cash flow reflects estimated cash flows from operating activities of €0.5 billion, offset by capital expenditures of €0.7 billion on property, plant, equipment and intangible assets.
BASFY raised its full-year 2026 outlook for EBITDA before special items to €6.9-€7.7 billion, up from the previous forecast of €6.2-€7 billion, reflecting stronger-than-expected business performance. The company maintained its free cash flow guidance of €1.5-€2.3 billion, while noting that higher raw material prices continue to increase working capital requirements.
Per BASFY, the outlook for the global economy and regional chemical markets in the second half of 2026 remains uncertain, largely depending on the outcome of U.S.-Iran negotiations and continued access to the Strait of Hormuz. The company noted that a prolonged disruption of the trade route could hurt economic activity.
Shares of BASFY are up 10.9% over the past year against the industry’s 2.8% decline.
BASFY’s Zacks Rank & Key Picks
BASFY carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the Basic Materials space are CSW Industrials, Inc. (CSW - Free Report) , Idaho Strategic Resources, Inc. (IDR - Free Report) and Ternium S.A. (TX - Free Report) . CSW, IDR and TX sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CSW’s current-year earnings stands at $12.52 per share, implying a 20.6% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise being 3.8%.
The Zacks Consensus Estimate for IDR’s current-year earnings is pegged at $1.52 per share, implying a 33.3% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise being 68.7%.
The Zacks Consensus Estimate for TX’s current-year earnings is pegged at $6.13 per share, indicating a 182.5% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, with the average surprise being 3.5%.