The company is undergoing a comprehensive restructuring.

German chemical giant BASF returned to net profit in the fourth quarter, driven by its cost-saving initiatives and organizational streamlining. The chemical producer reported on Friday a net profit of €560 million (equivalent to $660.8 million) for the fourth quarter of 2026, compared to a net loss of €786 million in the same period last year. According to the company's provided market consensus, this result significantly exceeded analysts' forecast of €285 million.

Quarterly sales declined by 5.6% to €14.03 billion, largely in line with analysts' expectations of €14.04 billion.

The company is currently executing a comprehensive restructuring, which includes streamlining its business portfolio, divesting non-core assets, spinning off its agricultural business, and reducing its workforce.

BASF also confirmed its preliminary figures for 2025: sales were €59.66 billion, down 2.9% year-on-year, while EBITDA before special items fell 9.5% to €6.55 billion.

The Ludwigshafen-based firm stated that it has accelerated its existing cost-saving program. By the end of 2025, annualized cost savings reached approximately €1.7 billion, exceeding the original target by €100 million.

BASF announced it will maintain a dividend of €2.25 per share.

For 2026, BASF targets EBITDA before special items in the range of €6.2 billion to €7.0 billion, and free cash flow between €1.5 billion and €2.3 billion.