BASF Q2 earnings surge 54% as Ag Solutions holds a 29% margin

BASF reported second-quarter EBITDA before special items of €2.4 billion, up 54% year on year, and lifted its full-year 2026 guidance to €6.9-7.7 billion from a prior €6.5-7.3 billion. The BASF Q2 earnings beat was driven by volume growth, improved pricing and lower fixed costs, with sales rising 16% to €17.2 billion.

Net income reached €4.1 billion, well above the €2.4 billion analyst consensus, boosted by a €3.5 billion after-tax disposal gain from the Coatings sale to Carlyle. That transaction delivered roughly €5.8 billion in cash and helped cut net debt by €4.2 billion to €17 billion.

Agricultural Solutions generated €5,315 million in first-half sales at a 29% EBITDA margin, down slightly from 30% a year earlier. Total segment sales fell 1.6% while volumes grew 3.2%, indicating share gains offset by pricing pressure and currency headwinds. The portfolio splits across herbicides at 32%, fungicides at 30%, seeds and traits at 23%, insecticides at 10% and seed treatment at 5%.

Management confirmed the unit remains on track for IPO readiness by mid-2027, a timeline that would place it alongside rivals pushing deeper into biologicals. BASF has reached a €2 billion annual run rate against a €2.3 billion cost-savings target and cut around 7,000 positions since January 2024. First-half free cash flow was negative €1.6 billion on working capital and restructuring outflows.

Source: BASF