BASF reported a net profit in the fourth quarter, supported by its cost-cutting initiatives and organizational streamlining.

The chemical giant announced on Friday a net profit of €560 million ($660.8 million) for the quarter, compared with a loss of €786 million in the same period a year earlier. This figure significantly exceeded analysts' expectations of €285 million, based on market consensus estimates provided by the company.

Sales for the period declined by 5.6% to €14.03 billion, slightly below analysts' forecast of €14.04 billion.

BASF is currently undergoing a comprehensive restructuring, which includes simplifying its product portfolio, divesting non-core assets, spinning off its agricultural business, and reducing its workforce.

The company also confirmed its preliminary results for 2025: sales of €59.66 billion, down 2.9% year-on-year, and EBITDA before special items falling by 9.5% to €6.55 billion.

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

BASF declared a maintained 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.