Bayer (BAYN) Q4 2025 earnings summary

Executive summary

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

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

• Major litigation developments: nationwide glyphosate/Roundup™ class settlement progressing, with $7.5 billion in litigation-related special items recognized and US Supreme Court filings ongoing.

• Strategic focus on operational efficiency, deleveraging, and cash conversion amid litigation-related impacts.

• 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%), free cash flow €2.1 billion (down 33%), and net financial debt reduced to €29.8 billion.

• Group EBITDA before special items: €9.7 billion (down 4.5%), with negative FX effects of €491 million.

• EBIT was negative €1.077 billion after €6.185 billion in net special charges, mainly litigation-related.

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

Outlook and guidance

• 2026 outlook: net sales €45–47 billion (0–3% growth, constant currency), 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, 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.

• Free cash flow outlook reflects €5 billion in litigation payouts.

• Financing for litigation to rely on senior bonds and equity-credit instruments, not a capital increase.