Results of Operations of BASF SE

BASF SE’s sales revenue declined by €751 million to €21,040 million in the fiscal year. Despite higher sales volumes, sales decreased in the operating business due to lower sales prices. The economic environment continues to pose exceptional challenges for the chemical industry in the fiscal year. Against this backdrop, low plant capacity utilization and impairments on property, plant and equipment recorded in cost of sales totaling €54 million continued to have a negative impact on BASF SE’s profit. Effects from lower raw material and energy prices as well as from inventory valuation led to a positive earnings contribution in the fiscal year. The decision not to apply the Lifo method resulted in a positive one-off effect of €289 million. Gross profit on sales increased by €139 million overall to €3,089 million.

Income from operations decreased by €582 million to -€1,585 million, whereas we had forecast only a slight decline in earnings. In the previous year, income from operations also benefited on a one-off basis from a change in the actuarial assumptions regarding pension obligations. In the fiscal year, selling expenses increased by €22 million, while administrative expenses decreased by €8 million and research expenses by €45 million. The balance of other operating expenses and income declined by €752 million compared with the previous year to -€1,069 million. Restructuring expenses increased by €333 million, while expenditure for the implementation of other strategic measures increased by €149 million. In addition, out-of-period income decreased by €353 million. Dissolution of provisions decreased by €280 million and gains from asset disposals by €148 million. This was offset by an increase in insurance refunds by €52 million in out-of-period income. In addition, the foreign currency result improved by €50 million and expenses from agreed cost transfers from Group companies decreased by €115 million, expenses for environmental protection measures by €50 million and impairments by €20 million.

The financial result increased by €441 million to €4,450 million. The increase in income from shareholdings was mainly due to higher profit transfers, in particular due to higher dividends paid by a domestic and a Brazilian Group company. This was mainly offset by lower dividends from a Dutch BASF SE subsidiary.

The lower interest result was mainly due to the decline in income from pension plan assets. The other financial result increased mainly due to higher income in connection with guarantee commissions.

Income before income taxes decreased by €141 million year on year to €2,865 million. Income tax expenses decreased by €102 million in the fiscal year. Due to deferred tax assets and liabilities, €287 million lower expenses were recorded in the business year under review. By contrast, current income tax expenses increased by €185 million.

Net income decreased by €39 million compared with the previous year to €2,665 million in 2025.