German chemicals firm BASF posts higher profit despite weaker sales

German chemicals giant BASF reported higher first-quarter profit on Thursday, even as sales fell due to adverse currency effects and slightly lower prices.

Looking ahead for fiscal 2026, the company continues to expect adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of between €6.2 billion ($7.2 billion) and €7 billion.

In the quarter, net income amounted to €927 million, 14.8% higher than €808 million in the prior year. Earnings per share were €1.06, up 16.6% from €0.91 a year ago.

Adjusted earnings per share were €1.32, compared to €1.57 last year.

EBITDA amounted to €2.19 billion, up 5.6% year-over-year, while adjusted EBITDA dropped 5.6% to €2.36 billion. Adjusted EBITDA margin fell to 14.7% from 15.1% last year.

Disregarding the currency headwinds of more than €100 million, adjusted EBITDA would have reached the prior year level, the company said.

Sales in the first quarter amounted to €16.02 billion, down 3% from €16.51 billion last year.

Competitive pressure led to falling prices in the Chemicals, Materials, Industrial Solutions, Nutrition & Care and Agricultural Solutions segments. In the Surface Technologies segment, prices were significantly higher, mainly due to higher precious metal prices.

BASF said its business recorded solid volume growth in the quarter, driven by China and, since March, significantly shaped by the conflict in the Middle East.

Nearly all segments recorded increased sales volumes, except for Surface Technologies.

The company also said it intends to pay out an annual dividend of at least €2.25 per share, same as last year, or around €2 billion per year. This is in line with its aim for 2025 to 2028 to distribute at least €12 billion to shareholders through a combination of dividends and share buybacks.