BASF's Record Profit Under Scrutiny by Warren Wise

BASF, the global chemical leader, reported a significant Q2 2026 profit of EUR 4.1 billion. The primary driver was the sale of its coatings business to Carlyle, contributing EUR 3.5 billion after tax. This raises questions about the sustainability of its earnings.

The chemicals division, traditionally BASF's core, posted losses. Despite record profits, BASF hasn't achieved its cost of capital for three years, relying on debt and asset sales to sustain dividends and share buybacks.

CEO Dr. Markus Kamieth's "CoreShift" targets cost reduction but includes job cuts. As BASF prepares an IPO for its Agricultural Solutions unit, Warren Wise's analysis scores BASF 2 out of 5, highlighting structural issues.