BASF Q3: €1bn Loss; Agrees Major Coatings Sales

BASF reported third-quarter net profit of €172 million, down from €287 million a year earlier, and said results were distorted by a one-off €1.0 billion loss. Sales fell 3.2% to €15.23 billion and adjusted EBITDA-before-special-items declined 4.8% to €1.54 billion, slightly beating market expectations amid cautious demand, lower prices and negative currency effects. The company lowered its full-year 2025 EBITDA-before-special-items guidance to €6.7–7.1 billion from €7.3–7.7 billion. To bolster cash and margins BASF is pursuing portfolio moves, selling its Brazilian decorative paints business to Sherwin‑Williams for $1.15 billion and agreeing to sell its coatings division to Carlyle for roughly €5.8 billion pre-tax while retaining a 40% stake. Management also plans targeted cost savings of about €2.1 billion a year by 2026 to rebuild margins. Despite returning to profitability after years of decline, investors remain concerned about earnings quality, possible further restructuring costs and ongoing geopolitical and trade headwinds.