BASF SE Aims for 4 Billion Euros in Cash Flows by 2030, Targets 10-12 Billion Euros EBITDA by 2028
BASF SE, the world's largest chemical producer, has outlined its strategic vision and financial targets for the coming years. The company anticipates significant cash inflows and expects to achieve impressive earnings by 2028.
BASF SE aims high with its environmental catalysts and precious metals business (ECMS). By 2030, the company anticipates around 4 billion euros in cash flows from this division alone. Additionally, BASF SE targets an EBITDA of 10 to 12 billion euros by 2028, reflecting its commitment to growth and profitability.
The company is also reviewing strategic options for its automotive and repair coatings business, with a decision expected by the end of 2025. This review is part of BASF SE's ongoing efforts to optimize its portfolio and improve performance.
BASF SE has set a clear target for its return on capital employed (ROCE), aiming for around 10% by 2028. This demonstrates the company's focus on generating value for its shareholders.
In a potential boost for investors, BASF SE may commence a share buyback program of 4 billion euros earlier than planned, depending on cash inflows from sales. This move could enhance shareholder value and reflect the company's confidence in its financial prospects.
BASF SE is committed to maintaining a stable dividend, planning to keep it at least 2.25 euros per share. This provides shareholders with a reliable income stream.
The company has also adjusted its investment plans, reducing planned spending on tangible and intangible assets from 17 to 16 billion euros by 2028. This adjustment balances the need for growth with the importance of capital discipline.
BASF SE's ambitious targets include a cumulative free cash flow of over 12 billion euros by 2028, further underscoring its commitment to strong financial performance.
BASF SE's strategic outlook and financial targets reflect its ambition to drive growth and create value for shareholders. With significant cash inflows, impressive earnings targets, and a focus on capital discipline, the company is well-positioned to deliver on its promises.
