Germany’s chemical giant BASF has raised its 2026 profit outlook for the second time this year, as disruptions linked to the Iran war boost demand for European chemical suppliers.
The company now expects adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) to reach between €7.4 billion and €7.8 billion this year, up from its previous forecast of €6.9 billion to €7.7 billion.
BASF reported third-quarter sales of €16.4 billion, exceeding analysts’ expectations. Higher prices helped offset rising energy costs, while improving sales volumes also supported performance.
Strait of Hormuz Disruptions Boost Demand
The closure of the Strait of Hormuz has disrupted supplies from the Middle East, creating additional demand for European chemical producers. The development has offered support to a sector that has faced prolonged business challenges, even as higher energy prices continue to put pressure on costs.
BASF also reported strong growth in its Greater China business region, where sales increased by around one-third, supported by a 20% rise in volumes.
However, its agricultural business recorded a 20% year-on-year sales decline, making it the main weak spot in an otherwise broadly stronger quarter.
BASF Plans Agricultural Business Listing
BASF plans to list its agricultural business on the Frankfurt Stock Exchange by mid-2027. The division competes in seeds and pesticides with companies including Bayer, Corteva and Syngenta.
Meanwhile, Syngenta is preparing a planned Hong Kong listing that could take place early next year, according to the report.
BASF’s improved outlook highlights how geopolitical disruptions can reshape demand across global industries. However, higher energy costs remain a challenge for chemical producers despite the recent boost in demand.
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