en.Wedoany.com Reported - Bayer released its second-quarter 2026 financial results on August 4. After several quarters of weak performance, the Crop Science division became the main growth driver this quarter, pushing the group's results above market expectations.
According to the announcement, the Crop Science division re-accelerated, primarily due to the re-approval of the dicamba herbicide label in the United States and strong demand for soybean and cotton seeds. The dicamba label had previously been disputed with local regulatory authorities; this approval removes restrictions on the adoption of the company's technology package during the U.S. growing season.
The group's adjusted EBITDA rose 1.9% year-on-year to €2.144 billion, exceeding the consensus expectation of €1.93 billion from Bloomberg analysts. Despite continued pressure from glyphosate litigation, the company managed to achieve both revenue growth and efficiency improvements in its agricultural business. Quarterly revenue totaled €10.872 billion, up 2.2% year-on-year on a currency- and portfolio-adjusted basis. Net profit reached €219 million, reversing a loss of €199 million in the same period last year; core earnings per share fell 16.7% to €0.95. The negative currency impact was only €63 million, compared with €550 million in the same period last year.
In terms of cash flow and debt, quarterly free cash flow was negative €371 million, versus positive €125 million in the same period last year, partly due to increased litigation settlement payments. As of June 30, net financial debt stood at €33.647 billion, up 3.5% from March 31 and up 1.1% year-on-year.
The agricultural division's adjusted revenue grew 3.5% to €4.91 billion. In the seed business, soybean seed and trait sales rose 16.9% year-on-year, and cotton seed sales grew 69.2%, both benefiting from the restoration of the dicamba label. Corn seed and trait sales fell 2.5%, with growth in Europe, the Middle East and Africa (EMEA) and Asia-Pacific only partially offsetting lower volumes in North America, where volumes shifted into the first quarter.
In the crop protection business, adjusted sales of glyphosate herbicides grew 12.6%, driven by both volume and price increases; insecticide sales rose 15.9%, also supported by volume and price growth in EMEA and Asia-Pacific.
The Crop Science division's EBITDA before special items grew 30.2% to €902 million, driven by high-margin revenue growth and lower cost of sales—the latter stemming from the "Five-Year Framework" efficiency program aimed at improving the division's profitability. The adjusted EBITDA margin rose 3.9 percentage points to 18.4%, the division's highest level in recent times.
Chief Executive Officer Bill Anderson stated that from an operational perspective, the company is on track to meet its full-year guidance, with all three divisions on course. He also noted progress on long-term strategic priorities, including revitalizing the pharmaceuticals pipeline and executing the Five-Year Framework plan in the Crop Science division; a favorable ruling by the U.S. Supreme Court for Bayer's subsidiary Monsanto has placed the company in a stronger position regarding a proposed class settlement in Roundup-related litigation. The market views these results as showing that the agricultural division, which had weighed on the group for years, has re-emerged as a growth engine at a time when Bayer needs to generate cash flow to fund the resolution of glyphosate-related litigation liabilities.
In Brazil, Bayer still faces another lawsuit progressing unfavorably. Brazil is Bayer's largest soybean seed market outside the United States. At the end of July, the Superintendência-Geral of Brazil's Administrative Council for Economic Defense (Conselho Administrativo de Defesa Econômica, Cade) recommended penalties against companies within the Bayer group for alleged anticompetitive conduct in incentive measures for the adoption of Intacta RR2 PRO biotechnology by breeders and related technology licensing programs.
The investigation began in January 2018, with leads originating from whistleblower reports received during the review of Bayer's acquisition of Monsanto, involving soybean seed access and multiplication, biotechnology licensing, and more. The practices under review include incentive policies for soybean breeders to adopt Intacta RR2 PRO biotechnology, practices related to Monsoy germplasm and Intacta RR2 PRO biotechnology, and contractual obligations requiring seed multipliers to purchase a minimum proportion of basic seeds (sementes matrizes) from the investigated companies. The case has been referred to Cade's administrative tribunal for final ruling; the Superintendência-Geral's recommendation is not a final decision, and Bayer may still present its defense in the collegiate hearing. Bayer did not comment on the case in its results press release.
Regarding guidance, Bayer confirmed its full-year 2026 guidance for all metrics, except net financial debt, which is now expected to be lower than initially anticipated. Based on exchange rates as of June 30, group revenue is expected to be between €44.7 billion and €46.7 billion, with core earnings per share between €4.20 and €4.70. In the first half, group revenue totaled €24.277 billion, up 3.3% on an adjusted basis; EBITDA before special items was €6.597 billion, up 6.6%; earnings per share were €3.66, up 3.4%.
