BASF (BFA.L, BASFY.PK) has outlined its financial targets for 2025 to 2028 and has revised its dividend policy accordingly. The company anticipates achieving EBITDA, before special items, in the range of 10 billion euros to 12 billion euros by 2028 under mid to upcycle conditions. Additionally, the cumulative free cash flow for the period from 2025 to 2028 is projected to exceed 12 billion euros.
In the medium term, BASF is committed to maintaining shareholder distributions at the levels seen in recent years, utilizing a blend of dividends and share buybacks. The company aims to distribute a minimum of 12 billion euros to shareholders between 2025 and 2028. This includes an annual dividend payout of at least 2.25 euros per share, amounting to approximately 2 billion euros per year.
Moreover, BASF has classified its business portfolio into core and standalone segments. The Chemicals, Materials, Industrial Solutions, and Nutrition & Care segments are identified as core businesses. Conversely, the Environmental Catalyst and Metal Solutions, Battery Materials, Coatings, and Agricultural Solutions segments are categorized as standalone businesses. BASF’s strategic focus will be on bolstering and profitably expanding its core businesses.
As part of its strategic realignment, BASF is initiating the divestment process for its decorative paints business in Brazil. The company anticipates a total cash inflow of around 2 billion euros from exiting the oil and gas business in 2024.
