Net Income From Shareholdings, Financial Result and Income After Taxes
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 year-on-year increase in net income from shareholdings of €711 million was mainly due to the €655 million improvement in earnings of non-integral companies, accounted for using the equity method. This increase was due to net special income of €1,338 million, mainly in connection with reimbursements to Wintershall Dea GmbH, Kassel, Germany, arising from the federal guarantees for expropriated assets in Russia. In the prior year, special income of €390 million was incurred in connection with the transfer of assets from Wintershall Dea to Harbour Energy plc, London, United Kingdom.
The financial result improved by €52 million compared to the previous year, mainly due to lower net interest expenses from defined benefit plans and similar obligations in other financial results. The level of the interest result was almost the same as the previous year.
Overall, income before income taxes rose by €586 million in 2025 compared with the previous year to €2,447 million. Income tax expenses came in at €907 million (previous year: €573 million). The tax rate for 2025 was 37.1%, compared with 30.8% in the previous year. The relatively high tax rate in both years was mainly due to the nonrecognition of deferred tax assets on loss carryforwards. In addition, the disposal gain from the sale of the decorative paints business in Brazil was taxed at 34%.
Income after taxes from continuing operations amounted to €1,540 million (previous year: €1,288 million).
Income after taxes from discontinued operations, which included the business activities of automotive OEM coatings, automotive refinish coatings and surface treatment, which are planned for sale, amounted to €185 million (previous year: €165 million). The increase primarily resulted from higher income from operations, which in the previous year had been dampened by special expenses.
Income attributable to noncontrolling interests decreased by €48 million to €107 million, mainly due to lower earnings contributions from BASF TotalEnergies Petrochemicals LLC, Houston, Texas. Overall, this resulted in a net income of €1,619 million.
Earnings per share for 2025 amounted to €1.82 (previous year: €1.45).