Bayer delivers upgraded 2025 ambition, projects solid 2026, focused on strategic priorities

Looking ahead, Bayer expects 2026 to be a year of solid sales and stable earnings on a currency-adjusted basis. “That outlook is emblematic of the company’s current strategic position: strong signs of progress, but still working on a comprehensive turnaround. We’ve made major gains across the company, but that work is not yet complete,” Anderson explained, adding: “We have a clear picture of what needs to be done in every area.” Moreover, Bayer’s multi-pronged strategy to contain the U.S. litigations proceeds apace, he noted, with the company having last month announced a class settlement agreement to resolve current and future claims relating to Roundup™ (glyphosate). In addition, Bayer continues to implement Dynamic Shared Ownership and expects to realize the targeted two billion euros in savings through the new operating model.

Group sales edge higher (Fx & portfolio adj.), net financial debt reduced

Group sales rose by 1.1 percent on a currency- and portfolio-adjusted basis (Fx & portfolio adj.) to 45.575 billion euros in 2025. There was a negative currency effect of 1.742 billion euros. EBITDA before special items decreased by 4.5 percent to 9.669 billion euros, and included a negative currency effect of 491 million euros that impacted all divisions. EBIT amounted to minus 1.077 billion euros (2024: minus 71 million euros) after net special charges of 6.185 billion euros (2024: 5.507 billion euros) that mainly resulted from litigation-related expenses. Net income came in at minus 3.620 billion euros (2024: minus 2.552 billion euros). Core earnings per share decreased by 2.8 percent to 4.91 euros, mainly due to the decline in earnings in the Pharmaceuticals and Crop Science divisions. However, the improved financial result had a positive impact.

Free cash flow declined by 32.9 percent to 2.084 billion euros. Net financial debt as of December 31, 2025, came in at 29.843 billion euros, representing a reduction of 8.5 percent against year-end 2024 that was mainly driven by cash inflows from operating activities as well as positive currency effects of 1.370 billion euros. At the upcoming Annual Stockholders’ Meeting on April 24, 2026, the company will be proposing a dividend of 0.11 euros per share for 2025, in line with the dividend paid for 2024.

Gains in corn seed business drive topline growth (Fx & portfolio adj.) at Crop Science

In the agricultural business (Crop Science), sales advanced by 1.1 percent (Fx & portfolio adj.) to 21.622 billion euros, with growth mainly driven by Corn Seed & Traits. Buoyed by gains across all regions, the Corn business registered a 13.2 percent (Fx & portfolio adj.) rise in global sales thanks to strong product performance, an increase in planted area and the resolution of a licensing agreement with Corteva in North America. Factoring out the resolution of the licensing agreement, sales at Corn Seed & Traits would have still grown just under 10 percent (Fx & portfolio adj.). Business was also up at Vegetable Seeds, with sales advancing 7.5 percent (Fx & portfolio adj.) due to higher prices and volumes in nearly all regions. Sales at Herbicides were at the prior-year level (Fx & portfolio adj. plus 0.5 percent), with sales of glyphosate-based products also remaining stable year on year (Fx & portfolio adj. plus 0.1 percent). Business at Fungicides was down 4.8 percent (Fx & portfolio adj.) against the prior year, largely due to declines in North America and Asia/Pacific from market- and weather-related factors. Sales at Insecticides declined 12.2 percent (Fx & portfolio adj.), with business impacted by the expiration of the Movento™ registration in Europe. As anticipated, sales at Soybean Seed & Traits and Cotton Seed decreased – by 7.7 percent (Fx & portfolio adj.) and 22.9 percent (Fx & portfolio adj.), respectively – due to the vacatur of the label for dicamba-based crop protection products in the United States.

EBITDA before special items at Crop Science decreased by 3.2 percent to 4.188 billion euros, and included a negative currency effect of 208 million euros (2024: positive currency effect of 37 million euros). Earnings benefited from strong growth at Corn Seed & Traits and cost savings from efficiency programs. By contrast, earnings were impacted by regulatory headwinds, higher expenses for the Group-wide short-term incentive (STI) program and strategic actions, including costs associated with portfolio streamlining and the absence of prior-year income from the divestment of noncore businesses. The EBITDA margin before special items came in at 19.4 percent, and was therefore unchanged from the prior-year figure.

Pharmaceuticals posts higher sales (Fx & portfolio adj.) thanks mainly to gains for Nubeqa™ and Kerendia™

Sales of prescription medicines (Pharmaceuticals) increased by 1.7 percent (Fx & portfolio adj.) to 17.829 billion euros. Bayer again registered significant gains for Nubeqa™, for the treatment of cancer, and Kerendia™, for the treatment of chronic kidney disease associated with type 2 diabetes, as well as heart failure. Sales of these two products rose by 62.4 percent and 88.0 percent (Fx & portfolio adj.), respectively. In addition, sales of the long-term contraceptives in the Mirena™ product family continued to advance substantially, with business up 12.5 percent (Fx & portfolio adj.) thanks to higher volumes in the United States. The Radiology business also continued to post strong gains that were fueled by volume growth for Ultravist™ und CT Fluid Delivery. By contrast, business headwinds mainly related to declines for Xarelto™ and Eylea™. Sales of the oral anticoagulant fell by 31.6 percent (Fx & portfolio adj.) due to patent expirations, while the ophthalmology drug saw a decline of 3.7 percent (Fx & portfolio adj.) that was primarily attributable to lower prices, especially in Canada, the United Kingdom and Japan, as well as competitive pressure from generics. However, the launch of  Eylea™ 8 mg offering extended treatment intervals provided a significant boost and accounted for a growing share of overall Eylea™ sales (around 38 percent in the fourth quarter).

EBITDA before special items at Pharmaceuticals decreased by 4.2 percent to 4.525 billion euros. The decline in earnings was mainly attributable to an increase in selling expenses that primarily related to the launch of Nubeqa™ and Kerendia™ in new indications, as well as the market launch of Lynkuet™ (active ingredient: elinzanetant), a hormone-free treatment for symptoms associated with the menopause, the cardiology drug Beyonttra™ (active ingredient: acoramidis) and Hyrnuo™ (active ingredient: sevabertinib), for the treatment of patients with previously treated advanced HER2-mutant non-small cell lung cancer. There was also a negative currency effect of 213 million euros (2024: 491 million euros). Earnings were additionally diminished by higher investments in early-stage research and in cell and gene therapy and chemoproteomics technologies. By contrast, an inventory write-down reversal and lower expenses for late-stage clinical development projects had a positive impact. In addition, negative pricing developments in connection with patent expirations and the Inflation Reduction Act in the United States were fully offset by a strong increase in volumes. The EBITDA margin before special items declined by 0.6 percentage points to 25.4 percent.

Consumer Health: Stable sales (Fx & portfolio adj.) amid challenging market environment

Sales of self-care products (Consumer Health) came in at 5.802 billion euros, in line with the prior year (Fx & portfolio adj. minus 0.1 percent), as the division navigated a challenging environment in key markets, notably in the United States and China. Business was up in the Digestive Health, Dermatology and Pain & Cardio categories, with gains of 3.7 percent, 2.4 percent and 2.1 percent (Fx & portfolio adj.), respectively. By contrast, sales declined by 3.9 percent (Fx & portfolio adj.) at Nutritionals and by 3.0 percent (Fx & portfolio adj.) at Allergy & Cold, with business in the latter category primarily impacted by a soft allergy season in North America and lower sales of cough and cold products in Latin America.

EBITDA before special items at Consumer Health decreased by 1.8 percent to 1.341 billion euros. Earnings were impacted by a negative currency effect of 73 million euros (2024: 46 million euros) that the division was able to partially offset thanks to its continuous cost and price management efforts. Investments in product marketing were at the prior-year level, while overall selling expenses were down. The EBITDA margin before special items came in at 23.1 percent, 0.2 percentage points below the prior-year level.

Group outlook for 2026: Stable sales and earnings (Fx adj.)

On a currency-adjusted basis (i.e. based on the average monthly exchange rates in 2025), Bayer expects to generate sales of 45 billion to 47 billion euros in 2026. This corresponds to a year-on-year change of 0 to plus 3 percent on a currency- and portfolio-adjusted basis. As part of its currency-adjusted forecast, the company also expects to post EBITDA before special items of 9.6 billion to 10.1 billion euros. With respect to core earnings per share, the company is updating the way it calculates this metric in order to provide enhanced transparency around its current operational performance. In addition to the depreciation of property, plant and equipment that is already accounted for as part of the existing approach, the updated methodology also factors in the amortization of certain intangible assets, in particular software. Had the new methodology been applied for 2025, core earnings per share would have amounted to 4.57 euros (compared with 4.91 euros based on the existing approach). Applying the updated methodology, currency-adjusted core earnings per share are expected to come in at 4.30 to 4.80 euros in 2026. Free cash flow is projected to amount to between minus 2.5 billion and minus 1.5 billion euros, reflecting approximately 5 billion euros in payouts in connection with litigations, as previously communicated. In addition, net financial debt as of year-end is expected to amount to 32.0 billion to 33.0 billion euros.

Bayer has also prepared its guidance based on the closing exchange rates as of December 31, 2025. With the company anticipating significant currency fluctuations in 2026, this guidance deviates from the currency-adjusted forecast above as follows: At Group level, Bayer expects to post sales of 44 billion to 46 billion euros, EBITDA before special items of 9.1 billion to 9.6 billion, and core earnings per share of 4.00 to 4.50 euros (based on the updated methodology outlined above).

Sustainability: Bayer makes further progress towards achieving its targets

Bayer remains well on track to hit its sustainability targets. Regarding its social sustainability targets, the company last year expanded access to self-care to 82 million people in economically or medically underserved communities, provided 68 million women in low- and middle-income countries with access to modern contraception, and supported 53 million smallholder farmers with products and services. Bayer is aiming to hit the 100-million mark in each of these areas by 2030.

Bayer is also making good progress on the climate action front. In 2025, for example, over half of the electricity purchased by the company came from renewable sources, marking the first time it has crossed this threshold. Bayer sites in Brazil, France and Spain are already utilizing renewables to satisfy 100 percent of their energy needs.

The company’s continued strides in the field of sustainability are also gaining recognition from rating agencies, with Bayer securing an AA rating from MSCI solutions for the first time. In addition, Sustainalytics lifted its “red flag” for Bayer at the end of 2025, pointing to the headway made in containing the litigation risk relating to glyphosate. This means that, overall, Bayer now has the best sustainability rating profile in its history across the various rating agencies.

Two new candidates for the Supervisory Board

At the upcoming Annual Stockholders’ Meeting on April 24, 2026, two stockholder representatives will be put forward for election to the Supervisory Board. The candidates being proposed by the Supervisory Board are Marcel Smits (64) and Alfred Stern (61). Marcel Smits was formerly Chairman and CEO of Asia Pacific and Global Head of Strategy at Cargill from 2018 to 2022. Prior to this role, he spent over five years as Cargill’s CFO. He currently operates as a seed and early-stage investor of several start-ups. His experience managing global agricultural and food businesses with complex supply chains will be highly valuable to the Supervisory Board. Alfred Stern is currently the CEO and Chairman of the Executive Board at OMV, where he has led the transition of the business to focus on integrated sustainable energy, fuels and chemicals. He has held this role since 2021 and will be stepping down after his term ends this coming August. Alfred Stern brings executive leadership experience, deep knowledge of the DACH region, and governance, environment and sustainability expertise to the Supervisory Board. Long-serving Supervisory Board members Paul Achleitner (69) and Colleen Goggins (71) will not be standing for reelection once their terms of office come to an end at the 2026 Annual Stockholders’ Meeting.