Industrial Solutions
Please note
The audited BASF Report will be published on March 21, 2025. The key financial figures published here are therefore to be regarded as preliminary. From today's perspective, no adjustments are expected.
The content of this section is not part of the statutory audit of the annual financial statements but has undergone a separate limited assurance by our auditor.
The content of this section is voluntary, unaudited information, which was critically read by the auditor.
The Industrial Solutions segment consists of the Dispersions & Resins and the Performance Chemicals divisions. It develops and markets ingredients and additives for industrial applications, such as polymer dispersions, resins, additives, electronic materials and antioxidants. We aim to grow organically in key industries, such as paints and coatings, construction, electronic materials, chemicals, plastics and adhesives, paper coatings, automotive as well as energy and resources, and expand our market position by leveraging our comprehensive industry expertise and application know-how.
At a glance
€1,161 million
EBITDA before special items
2023: €965 million
€868 million
Segment cash flow
2023: €1,292 million
Industrial Solutions increased sales compared with 2023 due to sales growth in the Dispersions & Resins division. Sales in the Performance Chemicals division were slightly below the prior-year figure.
|
Industrial Solutions |
Dispersions & Resins |
Performance Chemicals |
|---|---|---|---|
Volumes |
7.0% |
7.0% |
6.9% |
Prices |
–3.6% |
–2.1% |
–6.1% |
Currencies |
–1.1% |
–1.1% |
–1.1% |
Portfolio |
–0.2% |
– |
–0.5% |
Sales |
2.1% |
3.8% |
–0.7% |
The increase in sales was mainly driven by higher volumes in all regions and in nearly all business areas based on a slight uptick in demand.
By contrast, prices declined in all regions and business areas, primarily as a result of lower prices for raw materials. Prices were also reduced in order to secure market share.
Sales in the Industrial Solutions segment were additionally impacted by negative currency effects, above all relating to the Brazilian real, the Chinese renminbi and the Japanese yen.
EBITDA before special items saw a considerable year-on-year increase in both divisions, mainly due to a volume-related increase in the contribution margin. Earnings growth also received slight support from lower fixed costs compared with 2023. The decline in fixed costs resulted mainly from currency effects and cost reduction measures.
Segment cash flow declined considerably in the Industrial Solutions segment, mainly due to buildups of inventories after having reduced inventories in 2023. In addition, there was a lower reduction in receivables compared with the previous year. By contrast, higher earnings had a positive impact on cash flow in both divisions.
Million € |
|
2024 |
2023 |
+/– |
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sales to third parties |
|
8,175 |
8,010 |
2.1% |
||||||||||
of which Dispersions & Resins |
|
5,110 |
4,921 |
3.8% |
||||||||||
Performance Chemicals |
|
3,065 |
3,088 |
–0.7% |
||||||||||
Intersegment transfers |
|
385 |
436 |
–11.7% |
||||||||||
Sales including transfers |
|
8,560 |
8,445 |
1.4% |
||||||||||
EBITDA before special items |
|
1,161 |
965 |
20.3% |
||||||||||
Special items in EBITDA |
|
–22 |
45 |
. |
||||||||||
EBITDA |
|
1,140 |
1,010 |
12.8% |
||||||||||
EBITDA margin before special items |
% |
14.2 |
12.0 |
– |
||||||||||
Depreciation and amortizationa |
|
360 |
349 |
3.0% |
||||||||||
EBIT before special items |
|
811 |
625 |
29.8% |
||||||||||
Special items in EBIT |
|
–32 |
35 |
. |
||||||||||
Income from operations (EBIT) |
|
780 |
660 |
18.1% |
||||||||||
Investments including acquisitionsb |
|
289 |
285 |
1.3% |
||||||||||
Segment cash flow |
|
868 |
1,292 |
–32.8% |
||||||||||
Assets (December 31) |
|
5,629 |
5,576 |
1.0% |
||||||||||
Research and development expenses |
|
144 |
150 |
–3.9% |
||||||||||
|
||||||||||||||
Industrial Solutions – sales by region
By location of customer
These contents fulfill the disclosure requirements of the European Sustainability Reporting Standards (ESRS).