BASF has outlined an ambitious corporate strategy aimed at reinforcing its financial performance and commitment to sustainability. During Capital Markets Day in Ludwigshafen, Dr. Markus Kamieth, Chairman of BASF’s Board of Executive Directors, emphasized the company’s goal to become the preferred chemical partner facilitating green transformations for its customers.

Dr. Dirk Elvermann, BASF’s CFO, highlighted the company’s plans to distribute at least €12 billion to shareholders between 2025 and 2028, a combination of dividends and share buybacks. The company is committed to maintaining a €2 billion annual dividend starting in 2025, while share buybacks are expected to reach €4 billion by 2027. BASF also aims to improve capital discipline by reducing capital expenditures and maintaining cost-saving measures.

Key Financial Targets for 2028

BASF has set several financial goals for the medium term. The company projects EBITDA to range between €10 billion and €12 billion by 2028, while its cumulative free cash flow is expected to surpass €12 billion over the same period. Additionally, BASF is targeting a return on capital employed (ROCE) of around 10% by 2028.

New Strategic Directions: Focus, Accelerate, Transform, and Win

The new strategy, termed “Winning Ways,” is built on four pillars: Focus, Accelerate, Transform, and Win. The company is concentrating on redefining its portfolio, separating core businesses like Chemicals, Materials, Industrial Solutions, and Nutrition & Care from independent units like Environmental Catalysts and Battery Materials. This move aims to grant more flexibility to each unit to compete effectively in their respective markets.

BASF also intends to explore strategic options for its Decorative Paints business in Brazil and may consider an IPO for its Agricultural Solutions segment by 2027. For the Battery Materials segment, BASF plans to mitigate risks through strategic collaborations, while the Environmental Catalysts and Metal Solutions business continues to provide solid cash flow despite operating in a low-growth market.

Commitment to Sustainability

As part of its commitment to the green transformation, BASF is intensifying efforts to offer low-carbon products. It plans to increase the volume of sustainable raw materials and invest €600 million annually in sustainability efforts from 2025 to 2028. BASF has set a target of achieving net-zero greenhouse gas emissions by 2050, with intermediate goals to cut emissions by 25% by 2030 compared to 2018 levels.

By focusing on both sustainability and financial performance, BASF positions itself to navigate market challenges while creating long-term value for shareholders.

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