Bayer Group has kicked off 2026 with broad-based growth across all divisions, reporting higher sales, sharply improved profits, and a stronger outlook—despite currency headwinds and legal-related cash outflows.
“We’re pleased with how our businesses started the year and we’re confirming our currency-adjusted outlook for 2026,” CEO Bill Anderson said when presenting the company’s Quarterly Statement for the first quarter on Tuesday.
He added on strategy that “we continue to advance our plan and we’re dialed in on delivering our commitments in the current year.”
Group sales rose to 13.405 billion euros in Q1 2026, up 4.1 percent on a currency- and portfolio-adjusted basis, although foreign exchange effects weighed heavily. EBITDA before special items increased 9.0 percent to 4.453 billion euros, while EBIT surged 51.8 percent to 3.528 billion euros, boosted by special items including gains tied to the Avelox business sale.
Net income more than doubled to 2.763 billion euros, while core earnings per share climbed 12.9 percent to 2.71 euros, driven largely by strength in Crop Science.
But cash flow told a different story. Free cash flow fell to minus 2.320 billion euros, driven mainly by elevated legal settlement payments, particularly related to PCB and glyphosate litigation. Net financial debt rose 9.0 percent from year-end to 32.518 billion euros, reflecting the cash outflow, though it remained lower year-on-year.
The standout performer was Crop Science, where sales jumped 6.8 percent to 7.558 billion euros. Growth was led by Soybean Seed & Traits, which effectively doubled on a currency- and portfolio-adjusted basis due to a licensing agreement resolution with Corteva in North America and improved pricing conditions after the return of the dicamba label in the US.
Corn Seed & Traits also grew 7.1 percent, supported by stronger volumes in North America and gains across other regions. However, herbicides and fungicides declined, with glyphosate-based products down 15.1 percent.
EBITDA before special items in Crop Science rose 17.9 percent to 3.014 billion euros, lifting margins to 39.9 percent. Efficiency gains and strong seed performance helped offset currency pressure.
Pharmaceuticals mixed as key drugs diverge
In Pharmaceuticals, sales held broadly steady at 4.249 billion euros. Oncology drug Nubeqa™ surged 57.1 percent, while kidney and heart treatment Kerendia™ jumped 84.2 percent, both driven by strong international demand.
But legacy drugs dragged performance. Xarelto fell 40.4 percent following patent expirations, while Eylea™ dropped 20.5 percent amid biosimilar competition, despite support from its new higher-dose formulation.
EBITDA before special items fell 7.5 percent to 1.242 billion euros, pressured by higher marketing spend, R&D investment, and pricing headwinds.
Consumer Health delivered 5.3 percent sales growth to 1.491 billion euros, led by Nutritionals and Dermatology. Strong e-commerce performance from Natsana and gains in Elevit helped drive results, alongside continued strength in Bepanthen.
EBITDA slipped 1.5 percent to 337 million euros due to currency effects and higher marketing spend, partially offset by sales gains and one-time divestiture proceeds.
CFO Wolfgang Nickl reaffirmed full-year guidance on a constant currency basis, while noting adjustments tied only to exchange rates.
“We reiterate our outlook at constant currencies for the full-year 2026, while continuing to monitor the geopolitical dynamics,” Nickl said. He added that “this is just a point-in-time analysis,” warning of continued volatility in foreign exchange markets.
On updated rates, Bayer now expects 2026 sales of 44.5–46.5 billion euros, EBITDA before special items of 9.4–9.9 billion euros, and core earnings per share of 4.10–4.60 euros.
