Bayer (BAYN) Q2 2026 (Media) earnings summary

Executive summary

• Group sales reached €24.3 billion in H1 2026 (up 3% year-over-year currency- and portfolio-adjusted), and €10.9 billion in Q2 2026 (up 2.2% year-over-year), with all divisions on track for full-year outlook.

• Core EPS for H1 was €3.66 (up 3% year-over-year); Q2 core EPS was €0.95 (down 16.7% year-over-year due to prior-year non-recurring tax benefits).

• Free cash flow was negative €2.7 billion in H1 and -€371 million in Q2, mainly due to litigation-related payouts.

• Strategic progress included margin expansion in Crop Science, resilience in Pharma, and a favorable US Supreme Court ruling reducing litigation risk.

• Capital structure was strengthened by a €3 billion Apollo investment and $5 billion bond issuance.

Financial highlights

• EBITDA before special items rose 7% to €6.6 billion in H1; Q2 EBITDA before special items was €2.1 billion, up 1.9%.

• Net income improved to €2.98 billion in H1 and €219 million in Q2.

• Net financial debt increased to €33.6 billion at end of Q2 2026, mainly due to litigation payouts and acquisitions.

• Capital expenditures rose to €1.07 billion in H1 (+25.6%).

• R&D expenses reached €2.94 billion in H1 (+2.5%).

Outlook and guidance

• Full-year 2026 guidance on sales, earnings, and free cash flow at constant currencies reiterated; net financial debt now expected at €29–30 billion, lower than previous guidance due to Apollo transaction.

• Sales for 2026 expected at €44.7–47 billion; core EPS at €4.10–4.70.

• Free cash flow (excluding settlements) forecast at €2.0–3.0 billion.

• Ongoing monitoring of geopolitical, weather, and macroeconomic factors.