Preliminary figures released by BASF show the German chemical producer recorded €4.1 billion in net income during the second quarter of 2026, largely because of the sale of its automotive coatings business.
The sale transferred BASF’s automotive original equipment coatings, automotive refinish coatings and surface treatment operations to investment firm Carlyle. The former BASF Coatings business now operates as Surventis. These operations include products and services used by vehicle manufacturers and collision repair businesses.
The transaction closed June 30 and added a €3.9-billion pre-tax gain to BASF’s quarterly results. BASF received about €5.8 billion before tax and retained a 40% ownership stake in Surventis.
Markus Kamieth, chairman of BASF’s board of executive directors, said the retained stake would allow BASF to “continue to participate in the future value creation of the coatings business.”
BASF’s underlying business also performed better than it did a year earlier. Quarterly sales rose 16% to €17.2 billion, compared with €14.8 billion during the second quarter of 2025. Higher prices and sales volumes drove the increase.
Adjusted earnings rose to €2.4 billion from €1.6 billion a year earlier. This figure excludes one-time gains and costs and is intended to show the performance of BASF’s continuing operations.
The full-year adjusted earnings forecast now ranges from €6.9 billion to €7.7 billion. The previous range was €6.2 billion to €7 billion.
Free cash flow was negative €200 million, compared with positive free cash flow of €500 million a year earlier. Higher raw material prices left more cash tied up in inventory and other operating costs.
BASF is scheduled to release its complete results for the first half of 2026 on July 29.
