Bayer (BAYN) Q4 2025 (Media) earnings summary

Executive summary

• Achieved upgraded 2025 guidance with group sales of EUR 45.575 billion, core EPS of EUR 4.91, and free cash flow of EUR 2.084 billion; net income was negative EUR 3.62 billion due to litigation charges.

• Dynamic Shared Ownership (DSO) operating model fully implemented, reducing bureaucracy and costs, and enabling faster product launches.

• Litigation remains a major focus, with a nationwide glyphosate (Roundup™) class settlement progressing and EUR 7.5 billion in litigation-related special items booked.

• Leadership transition underway, with Judith Hartmann set to become CFO in June.

• Proposed dividend of EUR 0.11 per share for 2025.

Financial highlights

• Group net sales grew 1.1% year-over-year on a currency and portfolio-adjusted basis.

• EBITDA before special items at EUR 9.669 billion, down 4.5% due to negative currency effects and litigation charges.

• Core EPS at EUR 4.91, down from prior year due to lower EBITDA and FX effects; reported EPS at -EUR 3.68 due to litigation provisions.

• Net financial debt reduced to EUR 29.843 billion by end of 2025, aided by cash flow and FX tailwinds.

• Employee count reduced by 5.1% to 88,078 at year-end.

Outlook and guidance

• 2026 net sales expected at EUR 45–47 billion, representing 0–3% growth at constant currencies.

• Core EPS for 2026 forecasted at EUR 4.30–4.80 (new methodology), with negative free cash flow of -EUR 1.5 to -2.5 billion due to EUR 5 billion in litigation payouts.

• Net financial debt projected to rise to EUR 32–33 billion in 2026.

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

• Methodology change in core EPS calculation to include certain intangible amortization, resulting in a EUR 0.35 step-down for 2025.