Bayer Aktiengesellschaft ETR: BAYN said first-half sales rose 3% on a currency- and portfolio-adjusted basis to €24.3 billion, as growth in Crop Science and Consumer Health offset pressure in parts of its pharmaceutical business. The company reiterated its full-year 2026 outlook and lowered its net financial debt target after a €3 billion equity investment from Apollo.
In the second quarter, sales increased 2% to €10.9 billion, while EBITDA before special items rose 2% to €2.1 billion, CFO Judith said during the company’s second-quarter media update. First-half EBITDA before special items increased 7% to €6.6 billion, and core earnings per share rose 3% to €3.66.
Second-quarter core EPS of €0.95 was 17% below the prior-year period, which Judith attributed to non-recurring tax and reconciliation benefits recorded in 2025. She said the results this year reflected a more normalized pattern consistent with Bayer’s expectations.
Business performance
Crop Science posted 5.5% sales growth in the first half, supported by seeds and traits as well as additional licensing revenue recorded in the first quarter. Its EBITDA margin expanded to 31%, which Bill said reflected a more favorable sales mix, licensing income and operational discipline.
Pharmaceuticals sales were flat. Growth from NUBEQA and KERENDIA, which together increased 66%, offset expected declines in Xarelto. Eylea sales fell 27% amid biosimilar competition, though Bayer said its 8-milligram formulation accounted for half of Eylea sales. The Pharmaceuticals EBITDA margin was 26%, in line with the company’s expectations as it continues investing in future growth.
Consumer Health sales rose 3.5%, with growth in all but one category. Nutritionals and dermatology were particularly strong, Bayer said. The division’s EBITDA margin was below the prior-year level but remained on track to meet the company’s outlook.
- First-half adjusted sales: €24.3 billion, up 3%
- Second-quarter adjusted sales: €10.9 billion, up 2%
- First-half core EPS: €3.66, up 3%
- First-half free cash flow: negative €2.7 billion
- Net financial debt: €33.6 billion
Cash flow, debt and financing
Free cash flow was negative €2.7 billion in the first half, compared with negative €1.4 billion a year earlier. Judith said €2.5 billion in litigation-related payouts drove the decline. Higher incentive payments also weighed on second-quarter cash flow.
Net financial debt was broadly stable from the second quarter of 2025 but increased by €1.1 billion from the end of the first quarter, reaching €33.6 billion. Bayer cited litigation payments, its acquisition of Perfuse Therapeutics and foreign-exchange effects.
The company completed a €3 billion equity investment from Apollo and subsequently issued $5 billion of U.S. dollar bonds. Bayer said the Apollo transaction is expected to close in the second half and reduce net financial debt. It now expects year-end net financial debt of €29 billion to €30 billion, compared with its previous target of €32 billion to €33 billion.
Judith said the company sees a “balanced risk and opportunity profile” for its full-year outlook, while continuing to monitor weather and geopolitical conditions affecting Crop Science, drug-pricing developments and consumer sentiment in key Consumer Health markets.
Pipeline and operating priorities
Bayer said asundexian received priority review in the U.S. and China, with a planned launch targeted for late 2026 or early 2027. Bill said Bayer intends to seek broad global availability for the stroke-prevention medicine, including in Europe and Germany, but argued that drug pricing must appropriately recognize medicines’ benefits to health systems.
The company also completed its acquisition of Perfuse Therapeutics, which is developing a treatment for glaucoma and diabetic retinopathy. In Crop Science, Bayer announced a licensing agreement for broad commercialization of hybrid wheat.
Bayer has consolidated its U.S. glyphosate operations into a distinct entity called Ruvion. Bill said the entity should be more agile in a commodity-driven market, but he declined to provide further details on any potential structural steps. He said glyphosate is among Bayer’s lowest-margin products and that its profitability can approach zero depending on generic product pricing.
Management also said its Dynamic Shared Ownership operating model is intended to make the company leaner and more productive. Bill said Bayer had no predetermined job-cut target and that employee headcount was roughly flat in the second quarter. The company is investing in artificial intelligence tools and systems as part of its productivity efforts.
Litigation and corporate structure
Bill said Bayer’s litigation-containment strategy advanced following a June 25 U.S. Supreme Court ruling in Monsanto v. Durnell. He said the ruling found that certain state failure-to-warn claims related to crop-protection products are preempted when the Environmental Protection Agency has approved product labeling.
Bayer’s proposed class settlement with plaintiffs’ firms remains in progress. The opt-out period closed June 4, and a final approval hearing in Missouri is scheduled for Aug. 19. Bill said Bayer does not expect to comment further on opt-out activity until the hearing date or afterward.
On the company’s broader structure, Bill said management continues to assess options but remains focused on improving the pharmaceutical pipeline, Crop Science profitability, litigation containment, debt reduction and operating efficiency. He said those priorities would strengthen Bayer under any future structural scenario.
About Bayer Aktiengesellschaft (ETR:BAYN)
Bayer Aktiengesellschaft, together its subsidiaries, operates as a life science company worldwide. It operates through Pharmaceuticals, Consumer Health, and Crop Science segments. The Pharmaceuticals segment offers prescription products primarily for cardiology and women's health care; specialty therapeutics in the areas of oncology, hematology, and ophthalmology; and diagnostic imaging equipment and digital solutions, and contrast agents, as well as cell and gene therapy. The Consumer Health segment markets nonprescription over-the-counter medicines for self-medication and self-care; and solutions for nutritional supplements, allergy, cough and cold, dermatology, pain and cardiovascular risk prevention, and digestive health.
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