BASF raises profit forecast but warns of uncertainty

German chemical group BASF raised its earnings forecast for 2026 on Wednesday after increasing prices for some products following the outbreak of the Iran war, but warned that uncertainty remained high.

BASF said it now expects EBITDA before special items, a key measure of profitability, to be between 6.9 billion and 7.7 billion euros, or $7.9 billion to $8.8 billion, in 2026. It had previously forecast a range of 6.2 billion to 7.0 billion euros.

The company, one of the world's largest chemical groups and a supplier to sectors including agriculture and automotive, said earnings had been helped after it raised prices for some goods in March by up to 30 percent in response to turmoil caused by the US-Israeli war against Iran.

BASF also said the outlook for chemical markets in the second half of 2026 remained highly uncertain. It said the outlook depended heavily on the result of negotiations between the United States and Iran, especially access to and use of the Strait of Hormuz for transporting energy and petrochemical feedstocks from the Middle East.

The company said a prolonged closure would weigh on the global economy, while a rapid agreement would provide a boost.

BASF shares were down three percent in Frankfurt in afternoon trade.

In the second quarter, BASF reported net profit of 4.1 billion euros, above forecasts of about 2.4 billion euros. The figure was helped by a one-off gain from completing the sale of its coatings division to US investment firm Carlye.

Sales in the April-to-June period rose 16 percent to 17.2 billion euros, helped by higher prices and higher volumes.

The group has been carrying out a major restructuring while facing strong competition, especially from China, and weak demand in Europe. Thousands of jobs are being cut at its historic German headquarters in Ludwigshafen. Earlier this year, BASF opened a major chemical complex in China to serve growing Asian markets.