BASF Shares Hit 52-Week High as Agribusiness Spin-Off Vote Takes Centre Stage

BASF shares reach a 52-week high after Q1 earnings beat estimates, as shareholders vote on agribusiness spin-off and dividend proposal.

BASF shareholders gathered in Mannheim on Thursday for a meeting that could reshape the German chemicals giant for years to come, as the company’s stock touched a fresh 12-month peak on the back of a first-quarter earnings beat.

The Ludwigshafen-based group posted adjusted operating profit of €2.4 billion for the opening three months of the year, comfortably ahead of the consensus estimate of roughly €2.2 billion. Net income climbed to €927 million, even as group revenues slipped 3% to €16.02 billion, weighed down by unfavourable currency movements in the US dollar and Chinese renminbi.

The share price rose more than 1% during the session, reaching €54.74 — a new 52-week high. That extends the year-to-date advance to around 22%. By late afternoon, the stock had settled back slightly to €54.08, still hovering near its recent peak.

Currency Headwinds Mask Underlying Volume Growth

Finance chief Dirk Elvermann pointed to solid volume growth as the main driver behind the earnings performance, noting that without currency headwinds the operating result would have matched last year’s level. Demand from China provided a particular boost, helping offset the drag from a weaker dollar and yuan.

Management remains cautious on the outlook, however, citing geopolitical tensions in the Middle East. The company is sticking with its full-year forecast for adjusted operating profit in a range of €6.2 billion to €7.0 billion, with the midpoint of €6.6 billion sitting below some market expectations. Elvermann said the group does not anticipate major supply chain disruptions before mid-year, thanks to local production capacity in the US and targeted price increases that are cushioning regional cost pressures.

Agribusiness Spin-Off Heads to Shareholder Vote

The main event on Thursday’s agenda is the vote on the separation of the Agricultural Solutions division. If approved, the unit will become a legally independent subsidiary from the start of May, paving the way for a potential initial public offering in Frankfurt targeted for 2027.

Livio Tedeschi, who already leads the agribusiness segment, will take the helm of the new entity. Analysts view the demerger as a logical move, given that agrochemicals and specialty chemicals follow very different market cycles and regulatory frameworks. A standalone structure should allow each business to respond more nimbly to its specific market conditions.

Dividend Proposal and Buyback Programme

Shareholders are also voting on a dividend of €2.25 per share for the past financial year, unchanged from the previous payout. If approved, the total distribution will amount to roughly €2 billion, with the following timetable:

• Ex-dividend date: 4 May 2026
• Record date: 5 May 2026
• Payment date: 6 May 2026

Alongside the dividend, BASF is pressing ahead with a multi-billion-euro share buyback programme. By mid-March, the company had already repurchased shares worth nearly €789 million.

Cost Savings Underpin Internal Resilience

With the macroeconomic environment offering little tailwind, the company is relying on its internal cost-cutting programme to support margins. Annual savings are on track to reach €2.3 billion by the end of 2026, providing a buffer against the lack of cyclical momentum.

The next major catalyst for the stock will come from the operational separation of the agribusiness unit and the establishment of its new management team. For now, investors appear content to back a strategy that combines a defensive dividend with a bold structural overhaul.