(Alliance News) - BASF SE on Friday cut its 2025 earnings forecast due to ongoing macroeconomic and geopolitical uncertainties.

The Ludwigshafen, Germany-based chemicals producer now expects earnings before interest, tax, depreciation and amortisation before special items between EUR7.3 billion and EUR7.7 billion in 2025, down from prior guidance of EUR8.0 billion to EUR8.4 billion.

In 2024, BASF reported Ebitda before special items of EUR7.9 billion.

BASF said the lower forecast reflects "ongoing macroeconomic and geopolitical uncertainties."

The global gross domestic product is projected to grow less in 2025 than previously assumed, BASF said, due to the US tariffs announced in early April and the resulting uncertainties in the market.

The growth of global industrial production is also expected to slow down, BASF said, and as a result market demand for chemical products will likely grow less than previously expected.

"Due to continued high product availability on the market, margins continue to remain under pressure, especially upstream," BASF added.

Shares in BASF closed down 1.8% at EUR43.33 in Frankfurt on Friday.

For the second quarter, BASF said sales declined by 2.1% to EUR15.77 billion from EUR16.11 billion a year prior. This resulted from negative currency effects in all segments and lower prices, particularly in the Chemicals segment, BASF said.

According to Vara, analysts had expected sales of EUR15.80 billion on average for the second quarter of 2025.

Volumes increased slightly compared with the prior-year quarter, mainly thanks to considerable volume growth in the Agricultural Solutions and Surface Technologies segments.

Ebitda before special items amounted to EUR1.77 billion in the second quarter, in line with Vara consensus, but below the prior-year quarter figure of EUR1.96 billion.

Agricultural Solutions considerably increased Ebitda before special items compared with the prior-year quarter figure, exceeding the highest analyst estimate for the segment. Surface Technologies and Nutrition & Care segments achieved slightly higher Ebitda before special items but in the Materials segment, Ebitda before special items declined slightly year-on-year.

The Chemicals and Industrial Solutions segments fell significantly short of the respective prior-year quarter figures.

Earnings before interest and tax amounted to EUR0.81 billion in the second quarter, slightly above Vara analyst consensus of EUR0.78 billion, but considerably below EUR0.97 billion a year prior.

Free cash flow for the quarter is EUR0.53 billion down from EUR0.47 billion a year prior.

By Jeremy Cutler, Alliance News reporter

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