Bayer AG

Bayer reported first-half 2026 net sales of EUR 24.3 billion, up 3%, and core EPS of EUR 3.66, up 3% year over year. In Q2, sales increased 2% to EUR 10.9 billion, EBITDA before special items rose 2% to EUR 2.1 billion, and core EPS was EUR 0.95, down 17% versus prior year. First-half EBITDA before special items rose 7% to EUR 6.6 billion. Free cash flow was negative EUR 2.7 billion in the first half versus negative EUR 1.4 billion last year, driven by EUR 2.5 billion of litigation-related payouts. Segment highlights included Crop Science sales growth of 5.5% with a 31% EBITDA margin, Pharma sales flat with a 26% EBITDA margin, and Consumer Health sales growth of 3.5%. Management reiterated full-year 2026 guidance for sales, earnings and free cash flow at constant currencies, and now expects net financial debt of EUR 29 billion to EUR 30 billion, down from prior guidance of EUR 32 billion to EUR 33 billion.

Bill Anderson said Bayer has made “decisive progress” on long-term priorities and is delivering on what it committed despite an uncertain environment. He emphasized a leaner operating model, productivity gains, AI adoption, and ongoing efforts to contain litigation, strengthen the balance sheet and improve Crop Science profitability. On strategy, he highlighted progress in the pharma pipeline, the Ruveon carve-out for glyphosate, and the company’s intention to keep a broad, global launch plan for asundexian.

Judith Hartmann said the first half showed stable operational momentum, with net sales up 3% to EUR 24.3 billion and EBITDA before special items up 7% to EUR 6.6 billion. She pointed to EUR 2.5 billion of litigation-related payouts as the key driver of negative free cash flow and noted net financial debt of EUR 33.6 billion, up EUR 1.1 billion versus the prior quarter due to payouts, the Perfuse acquisition and FX. She also highlighted the EUR 3 billion Apollo equity investment and the USD 5 billion bond placement, saying these strengthen liquidity and financial flexibility; as a result, net financial debt is now expected at EUR 29 billion-EUR 30 billion.

Analysts focused on asundexian launch plans, litigation opt-outs, the future of the Ruveon glyphosate carve-out, possible divestitures, and whether Bayer would pursue more financing or M&A. Management said it wants to launch asundexian in as many countries as possible, including Europe and Germany, but needs pricing discussions that appropriately value innovation. On litigation, Bayer said the opt-out period closed June 4, the final approval hearing is set for August 19, and it expects limited further comment until after that hearing. On structure and capital allocation, management said Ruveon is meant to be a faster, more competitive entity, kept an open mind on future structural options, and said the balance sheet will be strengthened while still allowing investment in Pharma.