BASF Nears €1.5bn Buyback Deadline as VCI Forecasts Another Year of Chemical Output Decline
02.06.2026 - 17:53:35 | boerse-global.de
The chemicals giant is in the final straight of its first share repurchase tranche, having bought back roughly 950,000 own shares in the last week of May alone. That brings the total since the programme kicked off in November 2025 to almost 27.8 million shares. The €1.5 billion buyback, set to wrap up by the end of June, forms the opening leg of a broader €4 billion repurchase plan stretching to 2028. All shares acquired are cancelled, trimming the equity base and boosting earnings per share.
The race to complete the buyback comes against a gloomy industry backdrop. Germany’s chemical industry association VCI reported that chemical-pharmaceutical production slumped 2.8% in the first quarter compared with the prior three months and was down nearly 6% year-on-year. Capacity utilisation edged up to only 75.1% — far from levels that generate healthy margins. Wolfgang Große Entrup, VCI’s managing director, pointed to acute cost pressure from soaring crude oil and oil-based inputs, aggravated by the closure of the Strait of Hormuz. That chokepoint has removed 20% of global oil and gas output from the market and hit 5–10% of basic chemical supply. The VCI expects production to fall further in 2026, with any revenue support from rising prices unlikely to translate into margin relief.
BASF’s own first-quarter numbers already reflected a cooler tone. Revenue came in at €16.0 billion, down from €16.5 billion a year earlier. Earnings before interest, taxes, depreciation and amortisation before special items slipped to €2.36 billion from €2.50 billion. Despite the decline, management stuck to its full-year forecast: EBITDA before special items of €6.2 billion to €7.0 billion, and free cash flow of €1.5 billion to €2.3 billion.
Should investors sell immediately? Or is it worth buying BASF?
Alongside the buyback, the company continues to prune its portfolio. BASF is selling its silicates business to PQ, a deal that covers assets at the Düsseldorf/Holthausen site. Closing is expected in the second half of 2026, subject to regulatory clearances. No financial terms were disclosed. BASF described the move as the outcome of a strategic review within its Care Chemicals division, reinforcing the pattern of focusing the group while returning billions to shareholders: between 2025 and 2028, at least €12 billion in total is earmarked for dividends and buybacks.
A separate disclosure this week offered a reminder that not every share movement signals trading activity. Dr. Stephan Kothrade, a BASF board member, reported an inheritance of company shares on 29 May. The transaction was executed off-market at a price of €0.00 and published via EQS on 1 June, fulfilling mandatory director-dealing requirements. The filing carries no trading signal — simply a transparency obligation triggered by an estate transfer.
After dipping to €50.90 earlier in the period, the shares recovered to €51.26, a gain of 0.71% on the day. That leaves the stock roughly 15% higher year-to-date but still about 6% below its 52-week high of €54.70 reached in April. With the buyback deadline just weeks away and industry headwinds persisting, the market’s attention will stay fixed on fundamentals rather than an inherited stake.
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BASF Stock: New Analysis - 2 June
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