Economic Position and Target Attainment

Bayer achieved its upgraded operational targets for 2025 and also continued to make tangible progress in delivering on its strategic priorities. At the Group level, we posted modest topline growth, with sales rising 1.1% on a currency- and portfolio-adjusted basis (Fx & portfolio adj.). EBITDA before special items declined by 4.5%, while the EBITDA margin before special items came in at 21.2% and was therefore down 0.5 percentage points against the previous year. This was largely due to the decline in earnings at Pharmaceuticals and Crop Science. At Crop Science, sales rose by 1.1% (Fx & portfolio adj.), while EBITDA before special items declined by 3.2%. Pharmaceuticals increased sales by 1.7% (Fx & portfolio adj.) but saw EBITDA before special items fall by 4.2%. Sales at Consumer Health were level year on year (Fx & portfolio adj. –0.1%), while EBITDA before special items decreased by 1.8%. Group earnings per share (total) came in at minus €3.68 in 2025, and were mainly weighed down by litigation-related expenses. Core earnings per share fell by 2.8% to €4.91. Our operational business was impacted by substantial currency headwinds overall. In addition, free cash flow came in at €2.1 billion, and was therefore below the prior-year level. By contrast, we reduced net financial debt to €29.8 billion.

In the Group outlook published in our 2024 Annual Report, we anticipated sales of €45 to €47 billion based on the closing rates on December 31, 2024, corresponding to a change of between –3% and +1% on a currency- and portfolio-adjusted basis. EBITDA before special items was forecast to come in at €9.3 to €9.8 billion, and core earnings per share at €4.25 to €4.75. Free cash flow was projected to amount to between €1.3 and €2.3 billion, while net financial debt was expected to come in at between €31.2 and €32.2 billion.

Following a slight adjustment in May due to currency developments, the Group forecast was updated in August to reflect the strong performance of our Pharmaceuticals business and significant currency effects. As part of this updated guidance, which was based on the closing rates on June 30, 2025, we projected sales of €44 to €46 billion, corresponding to a change of between –1% and +3% on a currency- and portfolio-adjusted basis. EBITDA before special items was forecast to come in at €9.2 to €9.7 billion, and core earnings per share at €4.45 to €4.95. The forecast for free cash flow was left unchanged, at €1.3 to €2.3 billion, while the net financial debt guidance was revised to €29.8 to €30.8 billion.

Our full-year performance was in line with this upgraded Group guidance, with attainment for most metrics coming in at the positive end of the respective corridors. While currency- and portfolio-adjusted sales growth was at the midpoint of the target corridor, EBITDA before special items, core earnings per share and free cash flow were all at the upper end of the projected ranges. We also succeeded in further reducing our net financial debt, which came in at the lower end of the expected range.

Target attainment in 2025