BASF Stock: Mixed Results Drive Share Price Higher

BASF's financial performance for the 2024 fiscal year presents a mixed picture, with adjusted EBITDA reaching €7.9 billion, marking a slight increase from the previous year's €7.7 billion but falling just short of the company's targeted range of €8.0-8.6 billion. Despite challenging market conditions that saw revenue decline to €65.3 billion from €68.9 billion, the chemical giant managed to maintain growth in sales volumes. The company faced headwinds from declining sales prices and unfavorable currency effects, though pricing showed signs of recovery throughout the year.

Free Cash Flow Exceeds Expectations

In a positive development, BASF surpassed its free cash flow projections, achieving €0.7 billion against an expected range of €0.1-0.6 billion, despite increased investments in fixed and intangible assets. While impairment charges, particularly in battery materials, and restructuring costs impacted the bottom line, investors responded favorably to the preliminary results, driving the stock up 1.42% to €46.45 in after-hours trading. The company's market capitalization stands at €41.9 billion, with shares trading 13.50% above their 52-week low.