BASF lifts 2026 profit outlook as Iran war drives chemical prices to record highs
German chemical giant BASF raised its profit forecast for 2026, citing sharp price hikes triggered by the Iran war and ongoing restructuring.
BASF, the German chemicals leader, raised its 2026 profit guidance on Wednesday, citing sharp price increases following the outbreak of the Iran war and persistent cost pressures in energy and raw materials. The company now expects core profit for the year in the range of €7.4 billion to €7.8 billion, up from a previous forecast of €6.9 billion to €7.7 billion.
The upward revision marks the second time this year that BASF has adjusted its outlook, underlining the significant impact of the Middle East conflict on global chemical markets. The company reported a 15% year-on-year increase in core profit for the third quarter, reaching €1.6 billion, while overall sales rose 14% to €16.4 billion. BASF attributed these gains mainly to price hikes of up to 30% for certain products, implemented as early as March, and a modest 2% increase in volumes.
The company is undergoing a major restructuring that includes cutting thousands of jobs at its Ludwigshafen headquarters, aiming to reduce costs and improve competitiveness amid high energy prices and mounting rivalry from Asian producers.
The profit surge and restructuring position BASF to strengthen its role in the European chemicals sector, potentially accelerating consolidation if it proceeds with the acquisition of German peer Evonik. Such a move could lower feedstock costs and reinforce BASF’s market share against Asian competitors, while the group also expands its footprint in Asia with a new chemical complex in China.
Europe’s chemicals industry faces ongoing challenges from volatile energy prices and competition, which could lead to further industry consolidation, as highlighted by BASF’s actions. However, job cuts and restructuring risks may spark backlash from workers and local communities.
For European and Latin American investors, BASF’s revised guidance signals resilience in the face of geopolitical shocks, with implications for supply chains and raw material costs across both regions. The company’s ability to pass on higher costs may also influence pricing strategies throughout the chemicals sector.
