Surging 51-fold! BASF and Dow deliver Q2 financial turnarounds—among global chemical firms pursuing ‘slimming down and upgrading quality,’ who’s the top performer?

In late July 2026, two global chemical and plastics industry leaders—BASF and Dow—released their complete second-quarter financial reports: On July 23, Dow delivered an extraordinary turnaround—from a $801 million net loss in Q2 2025 to a $802 million net profit in Q2 2026; on July 29, BASF reported Q2 net income of €4.1 billion (compared to €79 million in Q2 2025), a staggering 51-fold year-on-year increase, and raised its full-year earnings guidance. Both companies operate across Europe and North America and cover the full spectrum—from polyolefins and advanced materials to coatings and fine chemicals. Their simultaneous, substantial earnings recovery reflects broad-based industry improvement—but divergences are evident in profit drivers, cash flow structures, and asset management strategies. Concurrently, major Chinese private-sector refining-and-petrochemical players—including Dongfang Shenghong, Rongsheng Petrochemical, and Hengyi Petrochemical—issued half-year profit forecasts showing explosive growth across the board. Thus, the Q2 2026 earnings recovery across the global plastics and chemicals sector is now widely acknowledged. This article analyzes both firms’ complete financial reports, comparing commonalities and core differences to unpack the underlying logic driving this market upswing. Comprehensive Comparison of Key Q2 Performance Metrics for Both Giants (I) Dow Chemical: Capturing the Polyolefin Cycle Upswing—Core Operational Profits Fully Recovered Dow’s Q2 2026 net sales totaled $12.092 billion, up 20% year-on-year; average product prices rose 20%, while favorable exchange rates contributed an additional 1% to revenue, with overall volume declining only slightly by 1%. The profit reversal was striking: a $801 million net loss in Q2 2025 versus a $802 million net profit in Q2 2026; operating EBIT reached $1.648 billion—versus a $21 million loss in Q2 2025—an approximate 230% year-on-year increase. By segment, Packaging & Specialty Plastics (Dow’s core polyethylene business) served as the profit engine, contributing a $1.229 billion year-on-year EBIT increase; Industrial Intermediates also saw gross margin recovery; only the Performance Materials segment posted a modest EBIT decline due to scheduled major plant overhauls. On the cash flow front, operating cash flow stood at $1.324 billion in Q2 2026—versus a $470 million net outflow in Q2 2025—confirming that pricing gains were fully converted into operating cash. During the quarter, Dow incurred $503 million in restructuring expenses, supporting implementation of its ‘Transform to Outperform’ cost-optimization strategy. (II) BASF Group: Steady Core Growth + One-Time Gains from Asset Divestitures BASF’s Q2 2026 sales totaled €17.2 billion—up €2.4 billion (+16.4%) year-on-year. Price increases contributed +11.5%, volume growth added +7.3%, while unfavorable exchange rates exerted a minor negative impact per preliminary reporting. EBITDA before special items reached €2.4 billion—up €854 million year-on-year—with significant profitability improvements across its Materials, Chemicals, and Industrial Solutions segments. The extraordinary profit surge stemmed primarily from a one-time asset disposal: the sale of its Coatings business to Carlyle Group generated a €3.5 billion after-tax gain, propelling Q2 after-tax profit to €4.2 billion and net income to €4.1 billion—versus just €79 million in Q2 2025.

Latest update! BASF, Dow, LG Chem, and 3M release latest quarterly results!

It has been learned that, following Evonik’s release of its Q2 2024 financial report, BASF, Dow, LG Chem, and 3M have all published their second-quarter results—overall meeting or even exceeding expectations. (1) BASF: EBITDA up 0.6% year-on-year In Q2 2024, BASF Group’s sales amounted to €16.1 billion—down €1.2 billion (or 6.9%) compared to €17.3 billion in Q2 2023. This decline resulted primarily from falling prices across all business areas, adverse currency effects, and minor portfolio adjustments. EBITDA before special items rose to €1.96 billion—a 0.6% year-on-year increase. By segment: Chemicals Segment: Sales increased 6.0% year-on-year to €2.8 billion; EBITDA rose significantly to €444 million—driven mainly by higher volumes. However, fixed-cost increases related to construction of BASF’s Zhanjiang site partially offset these gains. The Intermediates division saw EBITDA decline due to low margins, though a slight reduction in fixed costs provided marginal compensation. Materials Segment: Sales declined 5.3% quarter-on-quarter to €3.4 billion; EBITDA stood at €448 million—slightly below last year’s level. This was largely attributable to sharply lower earnings in the Monomers division, reflecting the absence of a one-time positive effect seen in Q2 2023; EBITDA growth was nonetheless supported by higher volumes. Industrial Solutions Segment: Sales rose 4.8% year-on-year to €2.1 billion; EBITDA grew markedly to €320 million—driven by higher volumes across both operating divisions and reduced fixed costs. EBITDA margin before special items improved from 10.1% in Q2 2023 to 14.9% in Q2 2024. Surface Technologies Segment: Sales fell 23.4% year-on-year to €3.2 billion; EBITDA edged down to €366 million. This decline was primarily driven by a sharp drop in precious metal prices affecting the Catalysts division; growth in battery materials failed to offset this shortfall. Meanwhile, the Coatings division posted a modest EBITDA increase; EBITDA margin rose to 11.3% (from 8.8% in Q2 2023), as high-margin contributions offset inflation-driven cost increases. Nutrition & Care Segment: Sales totaled €1.7 billion—down 2.7% year-on-year. EBITDA across both operating divisions rose to €183 million, driven by higher volumes and lower raw material costs. Fixed costs in the Nutrition & Health division rose slightly due to maintenance activities, yet EBITDA margin improved to 11.0% (from 8.2% in Q2 2023). Agricultural Solutions Segment: Sales totaled €1.9 billion—down 13.2% year-on-year, mainly due to weaker performance in North America. Difficult market conditions—including lower glufosinate sales volumes and steep price declines—led to a sharp EBITDA drop to €135 million and a year-on-year decline in EBITDA margin. Other Businesses: Sales rose 8.9% to €870 million—primarily driven by increased commodity trading volumes.

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