Surface Technologies
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.
As of December 31, 2025, the Surface Technologies segment consisted of the Battery Materials and Environmental Catalyst and Metal Solutions (ECMS) divisions. Until October 1, 2025, the segment also included the Coatings division (for more information on the Coatings transactions see Portfolio Measures). The Surface Technologies portfolio includes chemical solutions for surfaces in the areas of battery materials and emissions catalysts, as well as services in the areas of precious metals and base metals. We improve our customers’ applications and processes with tailored products, technologies and solutions, and support them through geographical proximity across all regions. The aim is to drive BASF’s growth by leveraging our portfolio of technologies and existing customer networks.
At a glance
€800 million
EBITDA before special items
2024: €470 million
€627 million
Segment cash flow
2024: €415 million
Compared to the previous year, sales in the Surface Technologies segment increased by €912 million to €8,967 million. This performance was largely influenced by strong sales growth in the ECMS division, especially in precious metal trading. Sales in the Battery Materials division also developed positively.
|
Surface Technologies |
Coatingsa |
Battery Materials |
ECMS |
||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Volumes |
8.8% |
5.5% |
12.0% |
8.8% |
||||||||
Prices |
9.0% |
2.5% |
0.2% |
10.3% |
||||||||
Currencies |
–4.8% |
–7.7% |
–5.0% |
–4.6% |
||||||||
Portfolio |
–1.7% |
–29.0% |
– |
– |
||||||||
Sales |
11.3% |
–28.6% |
7.2% |
14.5% |
||||||||
|
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Significantly increased prices, especially the precious metal prices in the ECMS division, had a positive effect on the segment’s sales performance. The Coatings1 division recorded a slight price increase, and in the Battery Materials division prices rose in the cathode materials business area.
The segment's significant increase in volumes was primarily due to positive development in the ECMS division, especially in the precious metals business. The Battery Materials and Coatings divisions also increased their sales volumes significantly.
Negative currency effects, mainly relating to the U.S. dollar and the Chinese renminbi, dampened the segment’s sales performance.
Negative portfolio effects resulted from the sale of the Brazilian decorative paints business, effective October 1, 2025.
EBITDA before special items in the Surface Technologies segment increased significantly compared with the previous year, primarily due to the improved results of the ECMS division. The improvement was attributable to reimbursements of production costs, mainly related to previous periods, significant fixed cost savings, strong precious metal trading and volume growth in mobile emissions catalysts and recycling. The Battery Materials division improved its EBITDA before special items, mainly due to a higher contribution margin.
Special income in EBITDA amounting to €594 million mainly included the gain from the sale of the Brazilian decorative paints business.
Segment cash flow increased significantly compared to the previous year, mainly due to lower capital expenditures in the Battery Materials division. The ECMS division improved its cash flow mainly due to a significant increase in earnings; negative effects from an increase in trade receivables compared with a reduction in the previous year had an offsetting effect.
Million € |
|
2025 |
2024 |
+/– |
||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sales to third parties |
|
8,967 |
8,055 |
11.3% |
||||||||||||||
of which Coatingsb |
|
347 |
486 |
–28.6% |
||||||||||||||
Battery Materials |
|
642 |
599 |
7.2% |
||||||||||||||
ECMS |
|
7,978 |
6,970 |
14.5% |
||||||||||||||
Intersegment transfers |
|
43 |
33 |
29.4% |
||||||||||||||
Sales including transfers |
|
9,010 |
8,088 |
11.4% |
||||||||||||||
EBITDA before special items |
|
800 |
470 |
70.2% |
||||||||||||||
Special items in EBITDA |
|
594 |
–65 |
. |
||||||||||||||
EBITDA |
|
1,394 |
405 |
244.1% |
||||||||||||||
EBITDA margin before special items |
% |
8.9 |
5.8 |
. |
||||||||||||||
Depreciation and amortizationc |
|
253 |
797 |
–68.3% |
||||||||||||||
EBIT before special items |
|
587 |
203 |
188.6% |
||||||||||||||
Special items in EBIT |
|
555 |
–595 |
. |
||||||||||||||
Income from operations (EBIT) |
|
1,141 |
–392 |
. |
||||||||||||||
Investments including acquisitionsd |
|
116 |
309 |
–62.5% |
||||||||||||||
Segment cash flow |
|
627 |
415 |
51.1% |
||||||||||||||
Assets (December 31) |
|
5,836 |
5,609 |
4.1% |
||||||||||||||
Research and development expenses |
|
155 |
179 |
–13.1% |
||||||||||||||
|
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Surface Technologies – sales by region
By location of customer
1 The figures of the Coatings division refer exclusively to the decorative paints business unit.