BASF Names External Coatings Chief as CoreShift Cost-Cutting Program Gathers Pace

BASF overhauls leadership, portfolio, and costs amid European headwinds, appointing Steve Arndt to lead automotive refinish coatings ahead of Carlyle sale.

BASF is simultaneously overhauling its leadership, portfolio and cost base as the chemicals giant navigates a difficult European environment. The latest move is the appointment of an external manager to run its global automotive refinish coatings business – a role that will become critical as the planned sale of the coatings segment to private equity firm Carlyle nears completion.

Steve Arndt, who brings more than three decades of industry experience from Axalta Coating Systems and FinishMaster, will take over as Senior Vice President for Global Automotive Refinish Coatings on 1 July 2026. He succeeds Chris Titmarsh, who is leaving BASF after more than 20 years. The change comes just months before the expected closing of the Carlyle transaction, underscoring BASF's determination to keep the business running smoothly during the transition. Arndt's deep knowledge of distribution in North America and Europe should help stabilise the unit even as the portfolio is being reshaped.

At the same time, the group is pressing ahead with its "Winning Ways" strategy, anchored by the CoreShift efficiency programme. The initiative targets a reduction of up to 20% in cash-effective fixed costs in core operations – Chemicals, Materials, Industrial Solutions, and Nutrition & Care – by 2029 against the 2024 baseline. High energy costs and volatile raw material supply in Europe are the main drivers of the push, leaving BASF little choice but to cut deeper into its own expense base rather than wait for market conditions to improve.

The company is also in the final stretch of its €1.5 billion share buyback programme, which has so far repurchased 27,835,549 shares since November 2025. In the last week of May alone, BASF bought back 950,000 shares via the stock exchange. The programme is scheduled to be completed by the end of June, and proceeds from the coatings sale to Carlyle are expected to be funneled directly into the buyback, providing additional support for the stock. For the full year 2026, BASF forecasts EBITDA of €6.2–7.0 billion and free cash flow of €1.5–2.3 billion.

The shares have gained 14.35% since the start of the year and recently changed hands at €51.16, up 1.17% on the day. That leaves them 7.07% below the 52-week high of €55.05 reached in mid-April. Technically, the stock sits below its 50-day moving average of €52.42 but well above the 200-day average of €46.83. The relative strength index of 46.8 suggests neutral conditions with no sign of overheating.

A recent study by Instinctif Partners gave BASF a score of 90 out of 100 for the quality of its digital communication but only 50 for its messaging, noting that the company does not actively address digitalisation with investors. Market observers see untapped potential in making the group's technological transformation more visible. The next major catalyst for the stock is the full second-quarter report in July, which will reveal whether the cost reductions are already feeding through to profitability. The final closure of the Carlyle deal and the subsequent deployment of the proceeds into buybacks could provide further momentum.