Forecast, Opportunities and Risks of BASF SE
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.
Earnings Forecast
In its forecast, BASF SE essentially makes the same assumptions regarding the development of global economic environment as the BASF Group.
The BASF Group plans for the Agricultural Solutions segment to be ready for listing on the stock exchange by 2027. In this context, the Agricultural Solutions business of BASF SE will be carved out as BASF Agricultural Solutions Deutschland GmbH, subject to the approval of the Annual Shareholders' Meeting of BASF SE. Effective date for the carve-out is January 1, 2026. We expect this carve-out to result in a decline in income from operations of BASF SE in the mid-double-digit million euro range in 2026.
In 2025, income from operations was influenced by expenditure for additional restructuring measures. This was offset in 2025 by one-off extraordinary effects from inventory valuation and insurance refunds, among other things. For 2026, we expect positive earnings contributions from cost-saving measures that have already been implemented as well as additional expenditure for further restructuring measures as part of the implementation of the corporate strategy. These will be offset by lower extraordinary effects on income.
Considering these assumptions, we expect a slight improvement in income from operations in 2026 compared with 2025.
Opportunities and Risks, Risk Management System
BASF SE is generally exposed to the same opportunities and risks as the BASF Group.
BASF SE’s internal control and risk management system with regard to the financial reporting process (section 289(4) HGB) is based on a uniform accounting guideline that sets out accounting policies and the significant processes and deadlines on a Group-wide basis. There are binding directives for the internal reconciliations and other accounting operations within the Group. Standard software is used to carry out the accounting processes, and there are clear rules for the access rights of each participant in these processes. The Financial Statements and parts of the disclosures on BASF SE in accordance with the German Commercial Code (HGB) are prepared by a specialist unit in the Global Business Services division.