Preliminary Q2 2026 financial metrics released by BASF indicate the German chemical corporation recorded an expected €4.1 billion in net income, a performance significantly driven by the completed divestiture of its automotive coatings division.
The transaction transitioned BASF’s original equipment manufacturer (OEM) automotive coatings, refinish coatings, and surface treatment business lines to global investment firm Carlyle, with the newly standalone entity operating under the brand name Surventis. The divested assets comprise consumable product portfolios and support systems utilized across automotive assembly networks and collision repair facilities.
The transaction officially finalized on June 30, contributing a €3.9 billion pre-tax disposal gain to BASF’s quarterly financial outcomes. The deal yielded approximately €5.8 billion in pre-tax proceeds for BASF, while the chemical manufacturer retained a 40% non-controlling equity stake in Surventis.
Markus Kamieth, chairman of BASF’s board of executive directors, noted that the retained equity position ensures the parent company continues to participate in the long-term enterprise valuation and future development of the coatings business.
Concurrently, BASF’s underlying continuing operations demonstrated year-over-year gains. Total quarterly revenue advanced 16% to €17.2 billion, compared to €14.8 billion documented during the second quarter of 2025, an expansion driven by positive pricing adjustments and increased sales volumes.
Adjusted earnings before special items grew to €2.4 billion, up from €1.6 billion in the prior year’s quarter. This core operational metric isolates structural performance by excluding volatile one-time gains, divestiture effects, and restructuring costs to track continuing business lines.
Reflecting the current performance trajectory, corporate management raised its full-year 2026 adjusted earnings guidance to a range between €6.9 billion and €7.7 billion. The target window was previously positioned at €6.2 billion to €7.0 billion.
Quarterly free cash flow dropped to a negative €200 million, down from a positive free cash flow of €500 million recorded in the second quarter of 2025. Increased raw material input costs resulted in higher working capital requirements tied up in physical inventory and day-to-day operational expenditures.
BASF is scheduled to publish its definitive half-year 2026 financial report and host its investor disclosure conference on July 29.
