On October 2, 2025, at the Capital Markets Day in Antwerp, Belgium—marking the first anniversary of the launch of its “Winning Strategy”, BASF held its 2025 Capital Markets Update. The company reaffirmed its 2028 financial targets and provided an update on the progress of its standalone and core businesses.
BASF’s 2028 Financial Targets:
Building on the corporate financial targets announced in September 2024, BASF remains committed to delivering attractive returns to shareholders. Assuming a cyclical recovery in the market, the Group targets:
EBITDA before special items of €10–12 billion in 2028
Cumulative free cash flow of over €12 billion from 2025 to 2028
Return on capital employed (ROCE) of around 10% in 2028
The company also confirmed a minimum annual dividend of €2.25 per share from 2025 to 2028, totaling around €8 billion in dividend distributions over four years. At the 2024 Capital Markets Day, BASF committed to share buybacks of at least €4 billion in 2027–2028. The company now indicates that the buyback program could begin earlier, depending on the progress of the Coatings business transaction.
“The past 12 months have shown that our new strategy is focused on the right direction. We have made good progress in execution and are confident in achieving our 2028 financial targets. By focusing on our portfolio, capital allocation, and performance culture, BASF is laying a solid foundation for profitable growth.” Dr. Markus Kamieth, Chairman of the Board of Executive Directors of BASF, stated in his keynote speech.
He emphasized that BASF’s integrated setup and diverse technologiesprovide cost competitiveness and advantages in low-carbon products. To address performance gaps in certain value chains, BASF is closing loss-making plants, launching competitive new capacities, and exploring strategic options, expecting to add around €400 million in earnings to its core business by 2028.
Monomers Division Product Portfolio
BASF’s Monomers division provides basic chemicals and forms the upstream foundation of its value chains. It primarily supplies:
Isocyanates (MDI, TDI)
Propylene oxide
Polyether polyols
Adipic acid for polyester polyols and downstream polyurethane systems
BASF offers over 100 propylene oxide-based polyether products.
Isocyanates
BASF operates key isocyanate facilitiesat all of its major Verbund sites worldwide. Both the Monomersand Performance Materialsdivisions hold leading positions in their respective segments.
Isocyanates account for 29% of BASF’s Monomers division sales
MDI: Global No. 2market position
TDI: Global top 3market position
Global Isocyanate Production Sites:
North America: Geismar, USA
Europe: Ludwigshafen, Germany; Antwerp, Belgium
Asia: Shanghai, Chongqing (China); Yeosu (South Korea)
This global footprint ensures balanced sales structures across all regions and strengthens BASF’s position as a global leader in isocyanates.
Systems Business
BASF operates 26 polyurethane systems plants worldwide. Proximity to customer centers and production sites is a key factor in operational excellence. BASF continuously balances supply chain efficiency, customer proximity, and scale at its systems plants.
In recent years, BASF has closed four systems plants in Russia, the Middle East, and Europe as part of ongoing optimization efforts. Technical expertise and customer service remain critical to winning and retaining projects.
【MDI】
1. Global MDI Market Continues to Grow – Over 18% Cumulative Growth in Past Five Years
MDI is a versatile product with growing demand across:
Construction
Automotive
Consumer goods(textiles, footwear, appliances)
In 2024, the global MDI market grew by nearly 300,000 tons, with a cumulative growth of over 18% in the past five years. Growth has been particularly strong in China, outpacing GDP. With increased infrastructure investment in Europe and North America, Western demand is expected to recover.
2. Expanding Capacity and Innovation to Strengthen Global MDI Leadership
USA: BASF is expanding MDI capacity in Geismar, targeting 600,000 tons/year by H2 2026 (doubling current capacity)
China: Smart debottlenecking projects underway in Shanghai and Chongqing
Sustainability: Continued investment in low-carbon and innovative applications
3. Process Optimization and Carbon Footprint Reduction
BASF’s global MDI capacity is close to 2 million tons/year, with plans for further expansion. The company maintains best-in-class product carbon footprint (PCF) across all regions.
Key Sustainability Initiatives:
B2Last:MDI-based additive for asphalt roads – improves durability, reduces emissions, enables asphalt recycling
Lupranat Net Zero: World’s first net-zero MDI launched by BASF
Flexible foam recycling:Used mattresses recycled into new products; BASF’s Renewable Hotel in Ludwigshafen uses recycled polyether mattresses
These efforts differentiate BASF in both internal and external markets, reinforcing its MDI market leadership globally.
【TDI】
TDI is primarily used in flexible foams for:
Mattresses
Furniture
Automotive seats
Coatings, adhesives, sealants, and elastomers
The TDI market is highly challenging:
Demand growth has slowed
Significant capacity additions in China have created oversupply
High energy costs in Europe
In response, BASF:
Closed its TDI plant in Ludwigshafen in 2023
Improved global asset efficiency
Maintained market share at a lower cost base
Achieved positive EBITDA and cash flow in 2024
Expects similar results in 2025
Going forward, BASF aims to:
Control costs
Maintain cost competitiveness
Break even on EBITDA and cash flow until the market recovers
Polyurethane Product Innovation at BASF
BASF is active in nearly all polyurethane applications, requiring deep understanding of diverse processes (e.g., double-belt lines for construction, rotary machines for footwear).
R&D intensity: 2–3%
Product renewal rate: ~20% every five years
Innovation Examples:
EV battery potting: Polyurethane systems for thermal management and safety
Footwear: Rapid formulation for brands like Adidas
Complexity management: Managing assets, customers, formulations, and raw materials
Market share: 16% globally, strongest in Asia
Customers: ~3,500, with highly customized products and limited distribution channels
Cellasto – A Unique Product Line
Used in automotive suspension systems (bump stops, top mounts)
Serves 400+ vehicle platforms, including VW MQB
Market share >50%
Headquartered in Shanghai, serving Asian OEMs and EV noise/vibration requirements
Sustainability
BASF divides sustainability into two focus areas:
1. Energy & Carbon Footprint
Polyurethane systems: ~3 kg CO₂e/kg
Low-carbon raw materials (e.g., Lupranat ZERO) used to reduce PCF
2. Circularity
Examples:
Vitra: Recycled foam from furniture waste reused in new products
Liebherr: Post-consumer fridge foam recycled via glycolysis into new polyols
These projects demonstrate BASF’s efforts to build complete recycling value chains, including waste collection, sorting, and processing.
Growth & Investment
BASF continues to invest in:
New Cellasto lines in India and China
Technical center in Mumbai, India
Thermoplastic polyurethane (TPU) line at Zhanjiang Verbund site, successfully started up in 2024
Smart capacity expansions (e.g., debottlenecking in Shanghai and Chongqing) to meet growing internal and external demand
In summary, BASF is reinforcing its global leadership in the polyurethane value chain through:
Strategic capacity expansion (especially MDI)
Operational excellence and cost optimization (especially TDI)
Innovation and sustainability leadership
Strong customer partnerships and technical expertise
These efforts are expected to contribute significantly to BASF’s 2028 financial targetsand long-term competitiveness.
If you are interested in more information about TDI, MDI, PO, Polyols, Adipic Acid and BDO, please kindly contact us via info@pudaily.com for free samples.
