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Germany's BASF raises core profit outlook again after quarterly beat - Finance news and analysis from Global Banking & Finance Review
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Germany's BASF raises core profit outlook again after quarterly beat

Published by Global Banking & Finance Review

Posted on October 28, 2026

2 min read

· Last updated: October 28, 2026

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BASF Lifts Core Profit Outlook After Strong Q3 Earnings and Demand Boost

Strong Third-Quarter Performance and Upgraded Outlook

Oct 28 (Reuters) - German chemicals group BASF raised its 2026 outlook for the second time this year after its third-quarter core earnings topped market expectations on Wednesday, as European chemical suppliers benefit from an Iran war-related demand boost.

Impact of Middle East Supply Disruptions

The closure of the Strait of Hormuz has been an unexpected boon for German chemical businesses, as Middle East supply disruptions drove up local demand, bolstering the struggling sector even as energy prices soar.

Upgraded Earnings Guidance

BASF said it expected adjusted core earnings to land between €7.4 billion and €7.8 billion ($8.2 billion and $8.7 billion) this year, up from the range of €6.9 billion to €7.7 billion it had given in July.

Q3 Sales Performance

The group recorded sales of €16.4 billion in the third quarter, nearly 5% ahead of analysts' expectations in a poll compiled by BASF, as higher pricing to offset energy costs and, to a lesser extent, volumes increased.

Agricultural Business Segment

Sales Slump in Agriculture

The agricultural business, which BASF is planning to list on the Frankfurt stock exchange, was the only outlier, recording a 20% sales slump compared with last year.

Planned Stock Exchange Listing

The group aims to list the agricultural business by mid-2027. The unit competes in seeds and pesticides with Bayer, Corteva and China's Syngenta.

Currency Exchange Rate

($1 = 0.8981 euros)

Reporting Credits

(Reporting by Tristan Veyet in Gdansk, Patricia Weiss in Frankfurt; editing by Milla Nissi-Prussak)

Key Takeaways

  • BASF’s Q3 core earnings surpassed expectations, prompting a second upward revision of its 2026 EBITDA‑before‑special‑items guidance to €7.4–7.8 billion, up from €6.9–7.7 billion in July. (basf.com)
  • Supply constraints from the Iran war and closure of the Strait of Hormuz have lifted prices and improved utilization at BASF’s Ludwigshafen site, benefiting European chemical producers. (marketscreener.com)
  • BASF’s Agricultural Solutions arm saw a 20 % sales decline in Q3 compared to last year; the company is preparing a partial IPO of this unit in Frankfurt by mid‑2027, retaining majority control. (beinstocks.com)

References

Frequently Asked Questions

Why did BASF raise its 2026 profit outlook?
BASF raised its outlook due to stronger than expected third-quarter earnings, helped by increased local demand following Middle East supply disruptions.
What caused the demand boost for German chemical suppliers?
The closure of the Strait of Hormuz led to Middle East supply disruptions, driving up local demand for European chemical suppliers such as BASF.
How much are BASF's expected adjusted core earnings for 2026?
BASF expects adjusted core earnings between €7.4 and €7.8 billion, up from a prior range of €6.9 billion to €7.7 billion.
How did BASF's agricultural business perform in the third quarter?
BASF's agricultural business recorded a 20% sales slump compared with last year and is planned for listing on the Frankfurt stock exchange by mid-2027.

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