Company Reports

We are transferring coverage of BASF, Dow, and LyondellBasell, which are some of the largest global commodity chemical producers. These firms primarily create value by converting oil and natural gas liquids into higher-value plastics, polymers, foams, and additives for a wide range of end markets.

BASF is the world’s largest chemical producer by volume. Of its six reportable segments, four represent the company’s core businesses and rely on its “Verbund” strategy. That strategy seeks to produce chemicals at the lowest cost through power savings and by recycling reaction byproducts into downstream production. Still, as a Europe-based producer, BASF faces higher energy and feedstock costs relative to US producers. These higher costs are due in part to the Russia-Ukraine war, which cut Europe off from cheap Russian fuel.

BASF benefited strongly in the second quarter from tighter supply in petrochemicals and higher pricing tied to the ongoing conflict in Iran. Guidance for full-year EBITDA before special items was raised by EUR 700 million to a midpoint of EUR 7.3 billion.

BASF is the world’s largest chemical producer by volume. Of its six reportable segments, four represent the company’s core businesses and rely on its Verbund strategy. That strategy seeks to produce chemicals at the lowest cost possible through power savings and by recycling reaction byproducts into downstream production. Still, as a Europe-based producer, BASF faces higher feedstock costs relative to US producers. We don’t believe that the savings it gains from Verbund fully offset its higher raw material costs.

BASF's volumes increased across all segments this quarter, aided materially by the startup of the Zhanjiang Verbund site in China. Pricing continues to weigh on core business revenue growth, as demand remains weak in all regions besides North America.

BASF is the world’s largest chemical producer by volume. Of its six reportable segments, four represent the company’s core businesses and rely on its Verbund strategy. That strategy seeks to produce chemicals at the lowest cost possible through power savings and by recycling reaction byproducts into downstream production. Still, as a Europe-based producer, BASF faces higher feedstock costs relative to US producers. We don’t believe that the savings it gains from Verbund fully offset its higher raw material costs.

BASF's operational profitability, measured as EBITDA before special items, fell year over year by 8% to EUR 6.6 billion from EUR 7.2 billion in 2024. Pricing in chemicals was hit hard in 2025, driven by weak industrial demand. Low growth in surface tech and agriculture partly offset this decline.

BASF is the world’s largest chemical producer by volume. Of its six reportable segments, four represent the company’s core businesses and rely on its Verbund strategy. That strategy seeks to produce chemicals at the lowest cost possible through power savings and by recycling reaction byproducts into downstream production. Still, as a Europe-based producer, BASF faces higher feedstock costs relative to US producers. We don’t believe that the savings it gains from Verbund fully offset its higher raw material costs.

BASF's stand-alone businesses in surface technologies and agricultural solutions provided a boost to an otherwise bleak earnings result. Pricing in commodity chemicals has continued to decline amid a pessimistic global backdrop for BASF's key end markets.

BASF is the world’s largest chemical producer by volume. Of its six reportable segments, four represent the company’s core businesses and rely on its Verbund strategy. That strategy seeks to produce chemicals at the lowest cost possible through power savings and by recycling reaction byproducts into downstream production. Still, as a Europe-based producer, BASF faces higher feedstock costs relative to US producers. We don’t believe that the savings it gains from Verbund fully offset its higher raw material costs.

BASF has inked a deal with private equity group Carlyle to sell its coatings business for EUR 7.7 billion. BASF will receive EUR 5.8 billion in cash and retain a 40% equity stake in the business.

BASF is the world’s largest chemical producer by volume. Of its six reportable segments, four represent the company’s core businesses and rely on its Verbund strategy. That strategy seeks to produce chemicals at the lowest cost possible through power savings and by recycling reaction byproducts into downstream production. Still, as a Europe-based producer, BASF faces higher feedstock costs relative to US producers. We don’t believe that the savings it gains from Verbund fully offset its higher raw material costs.

BASF's second-quarter earnings showed a 9% year-on-year decline in EBITDA before special items. The core businesses accounted for the decline, while performance in surface technologies and agriculture solutions rose. Notably, BASF contracted with Equinor to backfill its energy needs.

We have transferred coverage of BASF, the world’s largest commodity chemical producer by volume. BASF is based in Germany but has a global footprint. It is known for its Verbund process, which aims to maximize energy savings through the integration of its production infrastructure.

BASF is the world’s largest chemical producer by volume. Of its six reportable segments, four represent the company’s core businesses and rely on its Verbund strategy. That strategy seeks to produce chemicals at the lowest cost possible through power savings and by recycling reaction byproducts into downstream production. Still, as a Europe-based producer, BASF faces higher feedstock costs relative to US producers. We don’t believe that the savings it gains from Verbund fully offset its higher raw material costs.

BASF reported a first-quarter profit decline versus the prior-year quarter, driven by lower volumes and prices. Management maintained full-year guidance and cited little direct impact from tariffs. BASF shares were down slightly as the unchanged guidance came in below FactSet consensus estimates.

BASF is the world’s largest chemical company, producing commodity and specialty chemicals in nearly every major category. The firm maintains a top-three market position in over two thirds of its businesses. Its products are sold to a wide variety of end markets, ranging from industrials to transportation to pharmaceuticals to agriculture. The catalysts business generated around 20% of companywide revenue in 2024, while agriculture generated roughly 15%. The remaining 11 business lines accounted for roughly 10% or less. BASF is fairly vertically integrated, manufacturing many chemicals that serve as inputs to its other segments.

President Trump announced sweeping tariffs that featured a minimum 10% tariff on all US imports, with only limited exceptions and higher rates for select countries. Most US-listed chemicals producers were down on the news.

The German government announced a government spending package to invest in the country’s infrastructure. BASF shares soared 11% on the announcement.

BASF's fourth-quarter earnings highlighted the general recovery in most segments as higher volumes drove profit growth versus the prior-year quarter. Shares were slightly higher on the day as the results were in line with consensus estimates when excluding divestitures.