KWS SAAT & (KWS) Q4 2025 earnings summary

Executive summary

• Delivered full-year targets and robust operational performance despite challenging agricultural markets, with strategic portfolio streamlining and a completed realignment of the corn segment focused on profitable growth and risk reduction.

• Achieved strong free cash flow and significantly reduced net debt, highlighting balance sheet strength.

• Updated dividend policy with a higher payout ratio and commitment to continuity, aiming for increased shareholder participation.

Financial highlights

• Net sales from continuing operations were €1.68 billion, flat year-over-year, with 1% organic growth at constant currency and a -1.1% FX impact.

• EBITDA was €351 million, down 13.4%, reflecting special items and higher costs; prior year included a €28 million one-time gain.

• Net income declined to €140 million due to lower EBIT and higher tax rate; gross margin increased to 63.1%.

• Free cash flow improved to €123 million, driven by higher operating cash and lower CapEx; net debt reduced from €385 million to €62 million.

• Earnings per share rose to €7.16, including a €96 million extraordinary gain from South American divestment.

Outlook and guidance

• Targeting 3% to 5% organic net sales growth and 19% to 21% EBITDA margin over the next three years, with a positive outlook for 2025/2026 despite ongoing headwinds.

• For 2025/2026, expects ~3% net sales growth and EBITDA margin within target range, excluding a €30 million special gain from license rights sale.

• Dividend policy updated to a 25%-30% payout ratio of adjusted earnings; proposed dividend of €1.25 per share, up 25% year-over-year.

• Outlook reflects subdued commodity prices and lower growth in Russia due to localization and import restrictions.