Earnings Performance of the Bayer Group

Business development of the Bayer Group

Sales

Sales of the Bayer Group increased by 1.1% (Fx & portfolio adj.) to €45,575 million in 2025 (reported –2.2%), with Germany accounting for €2,584 million of this figure. We registered substantial currency headwinds of €1,742 million.

Sales at Crop Science advanced by 1.1% (Fx & portfolio adj.) to €21,622 million. Growth was mainly driven by Corn Seed & Traits, which registered significant gains and more than offset the headwinds arising from regulatory impacts in the United States and Europe. Sales at Pharmaceuticals rose by 1.7% (Fx & portfolio adj.) to €17,829 million. We again registered significant gains for Nubeqa™ and Kerendia™, as well as higher sales for our Radiology business and Mirena™ product family. By contrast, business headwinds mainly related to declines for Xarelto™ and Eylea™. Sales at Consumer Health came in at €5,802 million, and were therefore in line with the prior-year level (Fx & portfolio adj. –0.1%). We registered gains in the Digestive Health, Dermatology and Pain & Cardio categories, but posted declines at Nutritionals and Allergy & Cold. In the Reconciliation, sales decreased by 6.5% (Fx & portfolio adj.) to €322 million.

Earnings

EBITDA before special items of the Bayer Group declined by 4.5% to €9,669 million (2024: €10,123 million). This figure included a negative currency effect of €491 million that impacted all divisions. At Crop Science, EBITDA before special items declined by 3.2% to €4,188 million (2024: €4,325 million). Earnings were mainly impacted by higher expenses for the Group-wide short-term-incentive (STI) program compared with the previous year thanks to a higher level of target attainment. By contrast, our efficiency programs had a positive effect. At Pharmaceuticals, EBITDA before special items decreased by 4.2% to €4,525 million (2024: €4,722 million), mainly due to increased selling expenses for marketing our new products and higher investments in our R&D activities. EBITDA before special items at Consumer Health declined by 1.8% to €1,341 million (2024: €1,366 million), largely due to currency headwinds. However, the division was able to partially offset this effect thanks to its continuous cost and price management efforts. In the Reconciliation, EBITDA before special items came in at minus €385 million (2024: minus €290 million) and was mainly impacted by higher expenses for the Group-wide long-term incentive (LTI) program.

EBITDA declined to €1,708 million in 2025 (2024: €8,712 million), mainly due to higher special charges as well as the effects mentioned above.

Depreciation, amortization, impairment losses and impairment loss reversals led to net expense of €2,785 million (2024: €8,783 million). Of this amount, intangible assets accounted for amortization, impairment losses and impairment loss reversals of €984 million (2024: €6,636 million), and property, plant and equipment accounted for depreciation, impairment losses and impairment loss reversals of €1,801 million (2024: €2,147 million). Impairment losses and impairment loss reversals led to net gains of €1,379 million (2024: net expense of €4,735 million), with intangible assets accounting for net gains of €1,580 million (2024: net expense of €4,184 million). The impairment losses and impairment loss reversals were primarily attributable to the Crop Science Division (net impairment loss reversals of €1,628 million).

Net impairment loss reversals of €1,791 million (2024: net impairment losses of €4,096 million) and accelerated depreciation of €13 million (2024: €6 million) were included in special items.

EBIT before special items declined by 6.0% to €5,108 million (2024: €5,436 million). EBIT amounted to minus €1,077 million in 2025 (2024: minus €71 million) after net special charges of €6,185 million (2024: €5,507 million) that mainly resulted from litigation-related expenses.

The following special effects were taken into account in calculating EBIT and EBITDA before special items.

Core earnings per share

Core earnings per share decreased by 2.8% year on year to €4.91 (2024: €5.05), mainly due to the decline in earnings in the Pharmaceuticals and Crop Science divisions. However, the improved financial result had a positive impact.

Earnings per share (total) amounted to minus €3.68 in 2025 (2024: minus €2.60). The difference between this figure and the one for core earnings per share is mainly due to the litigation-related expenses.

Personnel expenses and employee numbers

The number of employees in the Bayer Group as of the closing date fell by 5.1% year on year to 88,078 (December 31, 2024: 92,815). Personnel expenses decreased by 5.8% to €11,725 million (2024: €12,451 million). The significant savings generated by the reduction in headcount as well as lower expenses for our restructuring programs more than offset higher expenses for the Group-wide incentive programs.

Bayer Group – Other earnings parameters

Functional costs

The special effects accounted for in EBIT and EBITDA before special items were attributable to the functional costs as shown in the following table.

The cost of goods sold fell by 11.6% year on year to €18,797 million, while the ratio of the cost of goods sold to total sales decreased to 41.2% (2024: 45.6%). After adjusting for special items and currency effects, the cost of goods sold increased by 2.6%. This increase mainly related to the Pharmaceuticals Division and was largely attributable to higher sales volumes.

Selling expenses declined by 6.1% to €12,549 million, with the ratio of selling expenses to sales amounting to 27.5% (2024: 28.7%). After adjusting for special items and currency effects, selling expenses edged up by 1.0% against the previous year.

Research and development (R&D) expenses decreased by 7.1% to €5,769 million, while the ratio of R&D expenses to sales came in at 12.7% (2024: 13.3%). This decline was mainly attributable to lower special charges in the Crop Science Division. Adjusted for special items and currency effects, R&D expenses increased by 5.2%, mainly due to investments in early-stage research and in our cell and gene therapy and chemoproteomics technologies.

General administration expenses fell by 16.1% to €2,160 million, while the ratio of general administration expenses to total sales fell to 4.7% (2024: 5.5%). After adjusting for special items and currency effects, general administration expenses were on a par with the prior year, edging 0.2% lower.

The balance of other operating expenses and other operating income came in at minus €7,377 million, representing a deterioration against the prior year (2024: minus €3,260 million) that was predominantly due to higher special items.

Overall, higher expenses for the Group-wide incentive programs pushed up all functional costs.

Financial result and income before income taxes

After a financial result of minus €2,052 million (2024: minus €2,263 million), income before income taxes amounted to minus €3,129 million (2024: minus €2,334 million). The improvement in the financial result was mainly attributable to a reduced loss from investments in affiliated companies as well as to lower expenses for the interest portion of discounted provisions.

Income taxes

Income tax expense of €466 million was recorded in 2025 (2024: €212 million). Current income tax expense increased by €50 million, while tax income from the recognition of deferred tax assets relating to temporary differences, tax loss carryforwards, unutilized tax credits and interest carryforwards decreased by €204 million overall.

Net income

After income tax expense and income attributable to noncontrolling interest, net income amounted to minus €3,620 million in 2025 (2024: minus €2,552 million).