Statement of the Chairman of the Board of Executive Directors
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.
Dear Shareholders,
Looking back, 2025 was a year of mixed emotions for me. We made great progress in implementing our “Winning Ways” strategy. Our efforts have contributed to creating a more focused and faster BASF. We achieved considerable milestones in streamlining our core businesses while swiftly advancing Coatings and Agricultural Solutions on their value-creation journey.
We have the right playbook to tackle short-term challenges, and, in the long term, we have the right strategy to shape a future proof BASF.
At our new site in Zhanjiang, China, the successful startup of the core of the Verbund – on time and below budget – stands as a testament to BASF’s operational excellence. Similarly, we continue to progress with our one-billion-US-dollar MDI expansion project in Geismar, Louisiana. In Ludwigshafen, our teams have exceeded my expectations in working to restore competitiveness and lay the groundwork for a profitable future for BASF in Europe.
At the same time, however, I must acknowledge that our strategic and operational measures have not yet fully translated into a tangible improvement in earnings. After a strong start in 2025, we faced increasing market volatility, with initial market tailwinds turning into geopolitical headwinds. In this difficult environment, our standalone businesses Agricultural Solutions as well as Environmental Catalyst and Metal Solutions stood out by delivering superior earnings contributions, leveraging their full strength.
Overall, BASF Group’s EBITDA before special items came in slightly below our most recent outlook range and analyst consensus. This was due to lower margins, particularly in the upstream businesses, as well as negative currency effects, mainly from a weak U.S. dollar. At the same time, free cash flow considerably exceeded analysts’ expectations and our own forecast. This provides a foundation for our dividend proposal of €2.25 per share for 2025. From today’s perspective, we do not expect a meaningful market upswing or a significant easing of geopolitical tensions in the near term. Our outlook for 2026 reflects this. This means that we are putting self-help at the heart of our actions and will be keeping a close eye on costs and our cash flow.
I nevertheless remain confident. We have the right playbook to tackle short-term challenges, and, in the long term, we have the right strategy to shape a future-proof BASF. What matters now is moving forward with courage, guided by our Winning Behaviors. BASF is a strong team and we have the capabilities to succeed – even under challenging conditions. That’s my source of confidence.
Dr. Markus Kamieth
Chairman of the Board of Executive Directors of BASF SE