BASF Stock: Mixed Results Impact Chemical Giant's Outlook

BASF's fiscal year 2024 presented a mixed financial landscape, with the chemical conglomerate achieving partial success in meeting its targets. The adjusted EBITDA rose to €7.9 billion, falling short of the company's projected range of €8.0-8.6 billion. Total revenue experienced a decline to €65.3 billion from the previous year's €68.9 billion, primarily attributed to adverse currency effects and lower selling prices, though prices showed gradual recovery throughout the year. A notable bright spot emerged in the free cash flow, which exceeded expectations at €0.7 billion, despite remaining below the prior year's figure of €2.7 billion.

Impairment Charges Weigh on Performance

The company's financial results were significantly impacted by non-cash impairment charges, particularly in the battery materials division within the Surface Technologies segment. Coupled with comprehensive restructuring expenses across all business units, these factors are expected to push net income below analysts' projections of €2.2 billion. However, this still represents a substantial improvement from the previous year's €225 million. Market reaction has been cautiously optimistic, with the stock showing modest gains in recent trading.