The massive German chemical company BASF increased its 2026 forecast on Wednesday for the second time this year after hiking some product prices in response to the start of the conflict in Iran. The manufacturer of everything from sunscreen ingredients to car paints now projects a core profit of €7.4 billion to €7.8 billion ($8.2 billion to $8.7 billion) this year, up from a prior estimate of €6.9 billion to €7.7 billion. Due to rising energy and other raw material costs brought on by the US-Israeli war on Iran, BASF raised prices for some products by up to 30% in March, which increased the company’s earnings.
The business said on Wednesday that its core earnings for the third quarter was €1.6 billion, a 15% increase over the same period last year. Significantly higher prices (plus 12%) and marginally greater volumes (plus 2%) were the primary causes of the increase, according to a statement from the company.
The findings come at a time when rising energy costs and fiercer competition from Asian competitors are putting significant strain on the European chemicals sector. Following the establishment of a significant chemical facility in China earlier this year to serve Asian markets, BASF is undergoing a significant reorganisation, eliminating thousands of positions at its historic German headquarters in Ludwigshafen.
Additionally, the corporation is considering a multibillion-euro takeover of its German competitor Evonik, claiming that the combination might enable it to acquire feedstocks and precursor chemicals at a reduced cost.
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