BASF Channels Coatings Windfall Into Climate Research as Agribusiness Spinoff Takes Shape
Published on 08/13/2026 at 14:12 | Redaktion boerse-global.de
The chemicals giant is putting its freshly unlocked capital to work on multiple fronts — funding a new agricultural research facility, buying back its own shares, and readying its crop-science division for a partial listing.
BASF said it will invest a low double-digit million-euro sum in a new Climate Center at its Limburgerhof agribusiness site, with completion targeted for the first half of 2027. The facility will support the Agricultural Solutions segment in developing climate-resilient farming technologies, part of a broader effort to position the division ahead of a planned partial initial public offering. That process has already reshaped the executive suite: Livio Tedeschi was appointed to the board in May with sole responsibility for the agribusiness unit, a move widely seen as laying the groundwork for its eventual separation.
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Coatings Sale Delivers a Windfall
The research spending comes on the heels of one of the company's largest portfolio moves in years. BASF completed the sale of its Coatings business to Carlyle and the Qatar Investment Authority on June 30, a transaction valued at €7.7 billion that generated a post-tax divestment gain of €3.5 billion in the second quarter. The company received roughly €5.8 billion in pre-tax cash proceeds and retains a 40 percent equity stake in the carved-out entity, now operating under the name Surventis.
That influx of cash has helped fund an aggressive capital return program. A new share buyback of up to €1.0 billion was launched at the end of July, scheduled to run from August 2026 through the end of April 2027. It forms part of a broader €4 billion repurchase program announced in September 2024, with BASF having already bought back €1.5 billion of its own stock between November 2025 and June 2026.
Guidance Raised After Strong Quarter
The second-quarter numbers gave management ample reason for optimism. Revenue came in at €17.2 billion, up 16 percent year over year, propelled by price increases of 11.5 percent and volume growth of 7.3 percent. EBITDA before special items reached €2.4 billion, comfortably ahead of the €2.1 billion analysts had penciled in.
That outperformance prompted BASF to lift its full-year EBITDA guidance to a range of €6.9 billion to €7.7 billion, up from the previous €6.2 billion to €7.0 billion target.
The portfolio cleanup continues on other fronts as well. In May, the company signed an agreement to sell its silicates business, including the DĂĽsseldorf/Holthausen site, to PQ, with completion expected in the second half of 2026. Earlier in the spring, the agricultural division closed its acquisition of AgBiTech from Paine Schwartz Partners, following a January agreement. Board changes accompanied the dealmaking: Mary Kurian and Livio Tedeschi joined the executive board in May, while Michael Heinz departed as planned.
Shares Drift Sideways Despite Momentum
The stock has shown mixed momentum recently. At €50.63, the shares sit roughly 8 percent below their 52-week high of €55.05 reached in April, yet remain well above the October 2025 low. Year-to-date, the stock has gained 14 percent, though it dipped 0.7 percent to €51.04 on the day the Coatings deal closed.
Analyst opinions have diverged. Berenberg initiated coverage with a "hold" rating and a price target raised from €47 to €50 in early June, while Deutsche Bank Research maintained a "buy" recommendation with a €60 target at the same time. Both assessments are now several weeks old and may not fully reflect the current market environment.
Investors will get fresh data on October 27, when BASF reports third-quarter results. Until then, the narrative will likely be shaped by the ongoing buybacks, the next portfolio moves, and the steady progress toward the agribusiness listing — with the raised guidance setting a higher bar for the quarters ahead.
