KWS SAAT & (KWS) Q4 2026 earnings summary

Executive summary

• Net sales declined by 3% to €1.63 billion, with organic sales down 1% year-over-year, impacted by challenging agricultural markets, lower acreage, and adverse currency effects.

• Profitability was maintained with an EBITDA margin of 21.1% (adjusted: 19.3%), and net income rose 13% to €158.4 million, supported by improved financial results and one-time effects.

• Free cash flow remained strong at €122.5 million, and net debt was nearly eliminated, falling to €8.7 million, reflecting a robust balance sheet.

• Continued investments in innovation, R&D, and strategic priorities, with over 500 new crop varieties approved globally.

• Dividend proposed to increase to €1.30 per share, with a payout ratio of about 29%.

Financial highlights

• EBITDA was €343.1 million, with adjusted EBITDA at €314.1 million after one-time effects.

• Gross margin was 61.2%, down from 63.1% the previous year.

• Earnings per share increased to €4.80, up 13.1% year-over-year.

• Free cash flow stable at €122.5 million, supported by M&A proceeds and lower capex.

• Net debt/EBITDA ratio at 0.03x, reflecting exceptional financial strength.

Outlook and guidance

• Organic net sales growth of around 3% is anticipated for fiscal 2026/2027 as agricultural markets recover.

• EBITDA margin guidance set at 19%-20%, in line with midterm ambitions and including substantial R&D investments.

• Continued high investments in R&D planned.

• Confident in profitable growth for the upcoming year.