BASF Steers Through a Summer of Strategic Splits: Coatings Cash-In and CoreShift Cost-Cuts Converge
31.05.2026 - 20:11:50 | boerse-global.de
BASF is navigating two pivotal transformations this summer. On one front, the €7.7bn sale of its coatings division is set to close in June, handing the chemical giant a pre-tax cash injection of around €5.8bn. On the other, a newly created “Core Transformation Office” under Julia Raquet is driving an ambitious push to cut cash fixed costs in the company's core segments by up to 20% relative to 2024 levels by 2029. The twin moves reflect a group caught between portfolio simplification and deep operational restructuring.
The coatings deal, agreed with private equity firm Carlyle and the Qatar Investment Authority, values the business at an enterprise level of €7.7bn and leaves BASF with a 40% equity stake in the new standalone entity. Jens Luehring has been named its future chief executive. Including the earlier sale of the decorative paints business, the entire coatings unit fetches €8.7bn — equivalent to roughly 13 times 2024 EBITDA. To finance the acquisition, banks have already placed around €1.95bn in high-yield bonds.
First-quarter results published a few weeks ago offered a mixed picture. Earnings per share rose to €1.06 from €0.91 a year earlier, but revenue slipped nearly 8% to €16.02bn. Group management maintained its full-year guidance for EBITDA before special items of between €6.2bn and €7.0bn, while free cash flow is expected to land in a range of €1.5bn to €2.3bn.
Should investors sell immediately? Or is it worth buying BASF?
On the trading floor, the stock has struggled to regain upward momentum. BASF shares closed at €50.64 on Friday, virtually unchanged on the day but 2.7% below their 50-day moving average of €52.05. Since the start of 2025 the stock has gained about 13%, though it has shed roughly 5.7% over the past month. The 200-day average sits comfortably lower at €46.67, providing a cushion of 8.5%. The 52-week high of €54.70 remains within reach — a gap of around 7.4%.
The broader chemical environment offers little tailwind. German chemical production shrank 6% in the first quarter compared with the prior year, and industry association VCI has warned that pockets of growth reflect “geopolitical hoarding” rather than genuine demand recovery. Capacity utilisation stands at just 75.1%, well below the level needed for profitability. Additional supply-chain strain from the closure of the Strait of Hormuz is pushing raw-material costs higher, while weakness in automotive and construction continues to weigh on order books.
Capital allocation remains the central question once the coatings proceeds land. Chief Financial Officer Elvermann has indicated that a significant portion of the cash will be used to bolster the balance sheet. At the same time, the current share buyback programme — worth up to €1.5bn — is due to expire in June, part of a larger plan to return at least €4bn to shareholders through repurchases by 2028. Capital expenditure for the 2026-2029 period has already been trimmed by 20% to €13bn, while BASF continues to spend roughly €1.5bn each year maintaining and modernising its flagship Ludwigshafen site.
The next key catalyst arrives in July with second-quarter earnings. Investors will be looking for evidence that the CoreShift program is translating into measurable margin improvement and that the coatings closing provides the clarity on capital deployment the market craves. For now, the share price sits just below a critical resistance level — and the coming weeks could determine whether the upward trend of 2025 resumes or stalls.
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