Chemicals
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 Chemicals segment comprises the Petrochemicals and Intermediates divisions. It contributes to our direct customer business and supplies the other segments with basic chemicals and intermediates, contributing to the organic growth of our key value chains. Customers in this segment mainly come from the chemical and plastics industries. We aim to further strengthen our competitiveness through technological leadership, operational excellence and products with a lower carbon footprint.
At a glance
€853 million
EBITDA before special items
2024: €1,342 million
-€1,182 million
Segment cash flow
2024: -€2,051 million
In the Chemicals segment, sales stood at €10,055 million, €782 million below the prior-year figure, mainly due to lower prices.
|
Chemicals |
Petrochemicals |
Intermediates |
|---|---|---|---|
Volumes |
–0.3% |
1.0% |
–4.1% |
Prices |
–8.8% |
–10.0% |
–5.2% |
Currencies |
–2.2% |
–2.2% |
–2.3% |
Portfolio |
4.1% |
4.3% |
3.6% |
Sales |
–7.2% |
–6.9% |
–8.0% |
Significant price declines due to global overcapacities and lower raw material prices dampened the segment’s sales. In the Petrochemicals division, prices fell for cracker products in particular and for styrenics and acrylic monomers. The Intermediates division experienced price declines in all business areas.
Negative currency effects, mainly from the U.S. dollar and the Chinese renminbi, dampened sales in both operating divisions.
Sales volumes in the segment were almost at prior-year level. While sales volumes in the Petrochemicals division increased, especially in the acrylic monomers and styrenics business areas, the Intermediates division recorded a decline in volumes. This was primarily due to subdued demand, which had been supported in the first half of 2024 as a result of the conflict in the Red Sea and unscheduled plant shutdowns among our competitors, as well as the closure of several production plants.
Positive portfolio effects resulted from a change in the business model of BASF-YPC Company Ltd., Nanjing, China, which is accounted for using the equity method. The company had marketed these volumes directly in the previous year.
EBITDA before special items1 for the Chemicals segment was considerably below the prior-year level. Earnings in the Petrochemicals division declined mainly due to lower contribution margins for steam cracker products and in the propylene value chain. Earnings in the Intermediates division were impacted by lower contribution margins due to declining prices. Lower fixed costs partially counteracted this development.
Special charges included in EBITDA amounted to €106 million in 2025 and resulted mainly from restructuring measures in the Intermediates division.
Segment cash flow1 in the Chemicals segment overall was significantly higher than in the previous year. This was mainly due to materially lower capital expenditures, particularly in the Petrochemicals division for the construction of the Verbund site in Zhanjiang, China.
Million € |
|
2025 |
2024 |
+/– |
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sales to third parties |
|
10,055 |
10,838 |
–7.2% |
||||||||||
of which Petrochemicals |
|
7,492 |
8,050 |
–6.9% |
||||||||||
Intermediates |
|
2,564 |
2,788 |
–8.0% |
||||||||||
Intersegment transfers |
|
3,432 |
3,962 |
–13.4% |
||||||||||
Sales including transfers |
|
13,488 |
14,800 |
–8.9% |
||||||||||
EBITDA before special items |
|
853 |
1,342 |
–36.5% |
||||||||||
Special items in EBITDA |
|
–106 |
–28 |
–283.9% |
||||||||||
EBITDA |
|
747 |
1,314 |
–43.2% |
||||||||||
EBITDA margin before special items |
% |
8.5 |
12.4 |
. |
||||||||||
Depreciation and amortizationa |
|
1,120 |
885 |
26.5% |
||||||||||
EBIT before special items |
|
–88 |
503 |
. |
||||||||||
Special items in EBIT |
|
–286 |
–74 |
–288.2% |
||||||||||
Income from operations (EBIT) |
|
–374 |
429 |
. |
||||||||||
Investments including acquisitionsb |
|
2,108 |
3,403 |
–38.1% |
||||||||||
Segment cash flow |
|
–1,182 |
–2,051 |
42.4% |
||||||||||
Assets (December 31) |
|
14,400 |
14,266 |
0.9% |
||||||||||
Research and development expenses |
|
87 |
80 |
9.6% |
||||||||||
|
||||||||||||||
Chemicals – sales by region
By location of customer
1 For EBITDA before special items and cash flow, “slight” means a change of 0.1%–10.0%, while “considerable” and its synonyms are used for changes of 10.1% and higher. “At prior-year level” indicates no change (+/–0.0%).