Global life sciences leader Bayer has said it met its 2025 financial targets after upgrading its outlook mid-year, with executives signalling progress across its business — but cautioning that the company’s broader turnaround remains unfinished.

 

Speaking at the company’s financial presser recently, CEO Bill Anderson said: “We delivered that guidance, landing comfortably within the improved corridor.”

 

He added that performance across Bayer’s three core divisions showed mixed but encouraging signs. 

 

“Crop Science progressed in the first year of its profitability improvement program. A rejuvenated picture of our Pharmaceuticals business emerged, with launch medicines establishing themselves as growth drivers and others advancing through our pipeline to market. Our Consumer Health business suffered from market softness in the United States and China, but maintained the bottom line.”

 

Looking ahead to 2026, Bayer expects stable earnings and modest sales growth, reflecting what Anderson described as a company still in recovery mode.

 

“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.”

 

The company also continues to tackle long-running U.S. litigation tied to its herbicide Roundup. Anderson said Bayer’s legal strategy is advancing, including a recently announced class settlement covering current and future claims linked to glyphosate.

 

Meanwhile, Bayer is rolling out its Dynamic Shared Ownership operating model, aiming to deliver €2 billion in cost savings.

 

Bayer reported 2025 group sales of €45.6 billion, up 1.1% on a currency- and portfolio-adjusted basis, despite a €1.7 billion negative currency impact.

 

Profitability weakened under the weight of legal costs: EBITDA before special items: €9.67 billion (down 4.5%); EBIT: –€1.08 billion; Net income: –€3.62 billion.

 

The losses were largely driven by €6.19 billion in special charges, primarily linked to litigation.

 

Free cash flow dropped 32.9% to €2.08 billion, though net financial debt fell 8.5% to €29.8 billion, helped by operating cash flow and favorable currency effects.

 

Bayer plans to propose a €0.11 per share dividend at its April 2026 annual meeting, unchanged from the previous year.

 

In Bayer’s largest division, Crop Science, sales rose 1.1% to €21.6 billion.

 

Growth was powered by the Corn Seed & Traits business, where global sales jumped 13.2%, boosted by strong product performance, increased planting area, and the resolution of a licensing agreement with Corteva in North America.

 

Other segments were more uneven: Vegetable Seeds: +7.5%; Herbicides: roughly flat; Fungicides: –4.8%; Insecticides: –12.2%

 

Sales of soybean and cotton seeds also declined after U.S. regulators vacated the label for dicamba-based crop protection products.

 

EBITDA before special items in Crop Science slipped 3.2% to €4.19 billion, though margins held steady at 19.4%.

 

Bayer’s Pharmaceuticals division posted 1.7% sales growth to €17.8 billion, driven largely by rapid expansion of two newer drugs: Nubeqa sales surged 62.4% and Kerendia sales jumped 88.0%.

 

The company also saw strong growth from its Mirena contraceptive line and imaging products such as Ultravist.

 

But older blockbuster drugs weighed on results: Xarelto sales plunged 31.6% following patent expirations; Eylea sales slipped 3.7% due to pricing pressure and generics competition.

 

Pharma earnings fell 4.2% to €4.53 billion, partly due to higher launch costs for new therapies including Lynkuet, Beyonttra and Hyrnuo.

 

The Consumer Health division posted flat sales of €5.8 billion, as soft demand in the United States and China weighed on performance.

 

Growth came from digestive health, dermatology and pain products, while nutritionals and allergy medicines declined, partly due to a mild allergy season in North America.

 

Earnings in the division slipped 1.8% to €1.34 billion, with currency pressure offset partly by cost controls.

 

For 2026, Bayer expects sales to hover around €45–47 billion.

 

However, free cash flow is projected to be negative, between –€2.5 billion and –€1.5 billion, largely due to about €5 billion in litigation payouts.

 

Net financial debt is expected to rise to €32–33 billion by the end of 2026.

 

Despite progress in several businesses, Bayer’s message to investors remains clear: the turnaround has begun — but the toughest work may still lie ahead.