Financial Position

Equity stood at €34,338 million, around €2,546 million below the figure as of December 31, 2024. Retained earnings declined by €952 million compared with the end of the previous year. Dividend payments to the shareholders of BASF SE of around €2 billion as well as share buybacks of €355 million were countered by a net income of €1,619 million. Other comprehensive income decreased by €1,444 million, mainly due to negative currency effects (€2,409 million); actuarial gains partially offset this.

At 45.1%, the equity ratio was slightly below the prior-year level (45.9%).

Noncurrent liabilities decreased by €1,068 million compared with the end of the previous year. Provisions for pensions and similar obligations decreased by €571 million, mainly due to higher interest rates; transfers to the coatings disposal group amounted to around €200 million.

Reclassifications to the disposal group were also a major factor in the €52 million decrease in deferred tax liabilities.

Other noncurrent provisions were almost at prior-year level. The reclassifications to the disposal group and to current provisions were almost completely offset by higher provisions, particularly for employee obligations.

The €642 million decrease in noncurrent financial indebtedness resulted primarily from the reclassification of two eurobonds with a combined carrying amount of around €1.5 billion and liabilities to banks of around €650 million from noncurrent to current financial indebtedness, the repayment of a €500 million loan, and interest and currency effects of around €330 million. By contrast, in China, a further €2.1 billion of the credit line for the construction of the Verbund site there was utilized and two new CNY bonds with a total equivalent value of around €360 million were issued.

Other noncurrent liabilities rose by €158 million compared with year-end 2024, mainly due to higher negative fair values of derivatives.

Current liabilities were €628 million below the 2024 year-end figure. The €1,438 million decline in trade accounts payable compared with the end of the previous year included reclassifications to the coatings disposal group amounting to €305 million.

By contrast, current provisions increased by €374 million, primarily due to higher provisions for restructuring measures and for variable compensation components.

Current financial indebtedness amounting to €2,608 million was almost at prior-year level: The scheduled repayment of four bonds and a private placement with a total carrying amount of around €1.7 billion, as well as the repayment of bank loans totaling around €360 million, were offset by the aforementioned reclassifications of around €2.2 billion.

The main reason for the €309 million decrease in other liabilities was the settlement of the liability relating to the aqueous film-forming foam multidistrict litigation in the United States in the first quarter of 2025.

Liabilities of the coatings disposal group stood at €1,008 million.

Net debt amounted to €18,329 million on December 31, 2025, and was therefore €452 million below the prior year-end figure.

For more information on the composition and development of individual balance sheet items, see the Notes to the Consolidated Financial Statements.

Off-Balance Sheet Obligations

Off-balance sheet obligations amounting to €26 billion (2024: €29 billion) mainly relate to long-term purchase obligations for raw materials and long-term supply agreements for electricity from renewable sources (for more information, see the Notes to the Consolidated Financial Statements under 24. Other Financial Obligations and 25.2. Financial risks). In addition, obligations exist in connection with initiated or planned investment projects amounting to €4 billion (2024: €7 billion). The decrease resulted mainly from lower obligations in connection with the construction of the new Verbund site in Zhanjiang, China.