Bayer (BAYN) investor relations material

Executive summary

• Achieved upgraded 2025 financial targets with sales of €45.6 billion, core EPS of €4.91, and free cash flow of €2.1 billion, despite FX headwinds and significant litigation payouts.

• Transformation efforts reduced management layers by two-thirds and employee count by 5.1% to 88,078.

• Major litigation containment steps underway, including nationwide glyphosate/Roundup™ class settlement and ongoing US Supreme Court proceedings.

• Strategic focus for 2026 on pharma growth, crop science profitability, cash flow, deleveraging, and operational efficiency.

• Proposed dividend of €0.11 per share for 2025.

Financial highlights

• FY 2025 net sales €45.6 billion (up 1% cpa), core EPS €4.91 (down 2.8%), and free cash flow €2.1 billion (down 33%).

• EBITA before special items was €9.7 billion; EBITDA margin before special items 21.2%.

• Net financial debt reduced to €29.8 billion (down 9% year-over-year).

• Litigation-related special items totaled €7.5 billion; net income was negative €3.62 billion due to high litigation charges.

• Negative FX effects totaled €1.742 billion on sales and €491 million on EBITDA.

Outlook and guidance

• 2026 outlook: net sales €45–47 billion (0–3% cpa), EBITDA before special items €9.6–10.1 billion, core EPS €4.30–4.80 (new methodology), free cash flow -€2.5 to -€1.5 billion due to €5 billion in litigation payouts, net financial debt €32–33 billion.

• Core EPS methodology change from 2026 includes regular amortization of certain intangible assets, reducing core EPS by ~€0.34 in 2025.

• Guidance based on closing 2025 FX rates: sales €44–46 billion, EBITDA €9.1–9.6 billion, core EPS €4.00–4.50.

• Financing for litigation resolutions to rely on senior bonds and equity-credit instruments.