Statement of Cash Flows

Cash flows from operating activities amounted to €5,610 million in the 2025 business year, €1,336 million below the prior-year figure. The increased net income in 2025 included significantly higher noncash and reclassification items than in the previous year: In addition to higher equity-accounted income, this related in particular to income from divestitures, while depreciation and amortization was lower than in 2024.

In addition, the price-related increase in precious metal trading items, which is included in other operating assets, led to cash tied up of €715 million, compared with €476 million released in the previous year. This was offset by significantly higher dividends received from investments accounted for using the equity method, in particular from Wintershall Dea GmbH, Kassel, Germany. The change in provisions, especially for variable compensation components and severance payments, also led to a €767 million higher cash release than in 2024.

The change in net working capital resulted in a €303 million lower cash inflow in 2025 than in the previous year. The decline was mainly due to trade accounts payable. After €96 million had been released in the previous year, a reduction in liabilities in 2025 led to cash tied up of €736 million. This was offset by a stronger reduction in trade accounts receivable that was €488 million greater compared with the previous year.

Cash flows from investing activities amounted to -€3,208 million in the business year under review, after -€5,081 million in the previous year. The significant improvement was mainly due to lower payments made for property, plant and equipment and intangible assets, which were reduced from €6,198 million in the previous year to €4,267 million in 2025.

In addition, net cash inflows from acquisitions and divestitures increased by €997 million compared to the previous year. In the 2025 business year, payments received from divestitures totaled €871 million, relating in particular to the divestiture of the Brazilian decorative paints business and the sale of the food and health performance ingredients business. Payments made for acquisitions were recorded only to an immaterial extent in 2025. In the previous year, however, cash flows from investing activities included €202 million in payments made for acquisitions, in particular for the acquisition of production plants from the joint venture Shanghai Lianheng Isocyanate Co. Ltd., Shanghai, China, previously operated jointly with Huntsman.

In the 2025 business year, inflows and outflows for equity instruments were insignificant overall. In the previous year, payments of €1,725 million had been received in connection with the sale of the exploration and production business of Wintershall Dea GmbH (until September 23, 2024: Wintershall Dea AG) to Harbour Energy plc, London, United Kingdom. Payments made for the acquisition of equity instruments in the previous year mainly related to the shareholdings in the Nordlicht 1 and 2 wind farm projects.

Cash flows from financing activities amounted to -€2,416 million in the 2025 business year, below the prior-year figure of -€1,547 million. In the business year under review, additions to and repayment of financial and similar liabilities almost balanced each other out. In contrast, the increase in debt in the previous year led to a net cash inflow of €1,783 million.

Conversely, dividend payments to shareholders of BASF SE were €2,008 million, €1,026 million below the prior-year level. Dividends paid to noncontrolling shareholders also decreased significantly, falling by €171 million to €78 million.

The share buyback program launched in the fourth quarter of 2025 led to a cash outflow of €355 million.

Free cash flow, which remains after deducting payments made for property, plant and equipment and intangible assets from cash flows from operating activities, represents the financial resources remaining after investments. Due to the lower capital expenditures, free cash flow improved significantly compared to the previous year. In 2025, free cash flow was €1,342 million, compared to €748 million in 2024.

For more information on the statement of cash flows, see Note 26 to the Consolidated Financial Statements.