Chemicals giant BASF raises 2026 profit outlook for second time on Iran war price hikes

Frankfurt, October 28 - German chemical conglomerate BASF has lifted its profit forecast for 2026 for the second time this year, following the implementation of price increases for certain products in response to the Iran war. The manufacturer, which produces a wide range of items including automotive paints and sunscreen ingredients, now anticipates a core profit of €7.4 billion to €7.8 billion (RM33.6 to RM35.4 billion) for the year, an increase from its earlier estimate of €6.9 billion to €7.7 billion.

The improvement in BASF's earnings is attributed to the price hikes for some goods, which were introduced in March by up to 30 percent to counteract the rising costs of energy and raw materials caused by the US-Israeli conflict with Iran. In the third quarter, BASF reported a 15 percent rise in core profit compared to the same period last year, reaching €1.6 billion.

The company's total sales grew by 14 percent over the same period, amounting to €16.4 billion. BASF attributes the increase to higher prices (up by 12 percent) and slightly higher sales (up by two percent). The positive results come at a time when the European chemicals industry is facing significant challenges due to high energy prices and fierce competition from Asian competitors.

BASF is undergoing a major restructuring effort, resulting in the loss of numerous jobs at its historic German headquarters in Ludwigshafen. In an effort to bolster its position in Asian markets, BASF recently opened a large chemical facility in China. Additionally, the company is actively considering a potential acquisition of its German counterpart Evonik, a deal that could enable BASF to secure raw materials and precursor chemicals at a lower cost.