Bayer Half-Year Financial Report Q2 2026

Financial Position of the Bayer Group

Statement of Cash Flows

Bayer Group summary statements of cash flows

€ million

 

Q2 2025

 

Q2 2026

 

H1 2025

 

H1 2026

Net cash provided by (used in) operating activities (total)

 

1,058

 

690

 

43

 

(1,104)

Net cash provided by (used in) investing activities (total)

 

154

 

(707)

 

315

 

(427)

Net cash provided by (used in) financing activities (total)

 

(482)

 

(1,477)

 

(1,723)

 

(949)

Change in cash and cash equivalents due to business activities

 

730

 

(1,494)

 

(1,365)

 

(2,480)

Cash and cash equivalents at beginning of period

 

4,015

 

5,728

 

6,191

 

6,671

Change due to exchange rate movements and to changes in scope of consolidation

 

(188)

 

55

 

(269)

 

98

Cash and cash equivalents at end of period

 

4,557

 

4,289

 

4,557

 

4,289

Second quarter of 2026

Net cash provided by operating activities

  • Net operating cash flow amounted to €690 million in the second quarter of 2026 (Q2 2025: €1,058 million). This year-on-year decline was partly due to higher payments to resolve legal proceedings, which largely related to the PCB and glyphosate litigations and resulted in a net outflow of €244 million (Q2 2025: €74 million). Net operating cash flow also included inflows of €166 million (Q2 2025: €0 million) arising from payments by banks relating to the transfer of trade receivables that were neither due nor settled by customers as of June 30, 2026.

Net cash used in investing activities

  • Net investing cash flow stood at minus €707 million in the second quarter of 2026 (Q2 2025: €154 million).

  • Net cash inflows from current financial assets totaled €173 million (Q2 2025: €503 million) and were mainly attributable to the sale of investments in money market funds.

  • Outflows for acquisitions, less acquired cash, amounted to €295 million (Q2 2025: inflows of €6 million) and largely pertained to the acquisition of 100% of the shares of Perfuse Therapeutics, Inc., United States.

Net cash used in financing activities

  • There was a net cash outflow of €1,477 million for financing activities in the second quarter of 2026 (Q2 2025: €482 million).

  • This figure included net debt repayments of €896 million (Q2 2025: net borrowings of €155 million).

  • Net interest payments amounted to €469 million (Q2 2025: €529 million).

  • The Bayer Group paid out €112 million in dividends (Q2 2025: €108 million), of which €108 million to Bayer AG stockholders (Q2 2025: €108 million).

Free cash flow

  • Free cash flow (total), which is the total operating cash flow less capital expenditures plus interest and dividends received less interest paid, came in at minus €371 million in the second quarter of 2026 (Q2 2025: €125 million), mainly due to the decrease in operating cash flow.

  • Adjusted for the aforementioned payments to resolve legal proceedings, which largely related to the PCB and glyphosate litigations, free cash flow amounted to minus €127 million (Q2 2025: €199 million).

First half of 2026

Net cash used in operating activities

  • Net operating cash flow came in at minus €1,104 million in the first half of 2026 (H1 2025: €43 million). Payments to resolve legal proceedings, which largely related to the PCB and glyphosate litigations, resulted in a net outflow of €2,246 million (H1 2025: €140 million). That figure included an amount of €432 million that was paid into a trust fund as part of the class settlement to resolve current and future glyphosate claims. Net operating cash flow also included inflows of €166 million (H1 2025: €0 million) arising from payments by banks relating to the transfer of trade receivables that were neither due nor settled by customers as of June 30, 2026.

Net cash used in investing activities

  • Net investing cash flow came in at minus €427 million in the first half of 2026 (H1 2025: €315 million).

  • Cash outflows for property, plant and equipment and intangible assets amounted to minus €1,071 million (H1 2025: minus €853 million).

  • Net cash inflows from current financial assets totaled €623 million (H1 2025: €1,205 million) and were mainly attributable to the sale of investments in money market funds.

  • Outflows for acquisitions, less acquired cash, amounted to €300 million (H1 2025: €197 million) and primarily pertained to the acquisition of 100% of the shares of Perfuse Therapeutics, Inc., United States.

  • Cash inflows from the sale of property, plant and equipment and other assets amounted to €219 million (H1 2025: €103 million) and mainly resulted from the sale of product rights (€124 million) for Ventavis™ worldwide, as well as for Actron™ and Actron™ Plus in Mexico. Additional inflows were attributable to the divestment of production facilities and office buildings at various sites.

Net cash used in financing activities

  • The net cash outflow for financing activities amounted to €949 million in the first half of 2026 (H1 2025: €1,723 million).

  • This figure included net debt repayments of €166 million (H1 2025: €869 million).

  • Net interest payments amounted to €671 million (H1 2025: €746 million).

  • The Bayer Group paid out €112 million in dividends (H1 2025: €108 million).

Free cash flow

  • Free cash flow (total) amounted to minus €2,691 million in the first half of 2026 (H1 2025: minus €1,403 million).

  • Adjusted for the aforementioned payments to resolve legal proceedings, which largely related to the PCB and glyphosate litigations, free cash flow amounted to minus €445 million (H1 2025: minus €1,263 million).

Net financial debt

Net financial debt1

€ million

 

Dec. 31, 2025

 

Mar. 31, 2026

 

June 30, 2026

 

Change vs. Mar. 31 (%)

Bonds and notes

 

33,310

 

33,670

 

31,807

 

–5.5

of which hybrid bonds2

 

4,522

 

4,524

 

4,526

 

0.0

Liabilities to banks3

 

1,857

 

1,899

 

2,290

 

+20.6

Lease liabilities

 

1,286

 

1,300

 

1,363

 

+4.8

Liabilities from derivatives4

 

137

 

173

 

218

 

+26.0

Other financial liabilities

 

989

 

1,845

 

2,753

 

+49.2

Receivables from derivatives4

 

(76)

 

(97)

 

(119)

 

+22.7

Financial debt

 

37,503

 

38,790

 

38,312

 

–1.2

Cash and cash equivalents

 

(6,671)

 

(5,728)

 

(4,289)

 

–25.1

Current financial assets5

 

(989)

 

(544)

 

(376)

 

–30.9

Net financial debt1

 

29,843

 

32,518

 

33,647

 

+3.5

1

For definition see Annual Report 2025, A 2.3 “Alternative Performance Measures Used by the Bayer Group.”

2

Classified as debt according to IFRS

3

Including both financial and nonfinancial liabilities

4

Including the market values of interest-rate and currency hedges of recorded transactions

5

Including short-term receivables with maturities between 3 and 12 months outstanding from banks and other companies as well as financial investments in debt and equity instruments that were recorded as current on first-time recognition

  • Net financial debt of the Bayer Group increased by €1.1 billion to €33.6 billion in the second quarter of 2026 (March 31, 2026: €32.5 billion), primarily due to the negative free cash flow, M&A transactions and currency effects. From a year-on-year perspective, net financial debt was virtually unchanged (June 30, 2025: €33.3 billion).

  • In June, Bayer Capital Corporation B.V., Netherlands, redeemed a bond with a volume of €1.75 billion, and Bayer AG redeemed a “Panda” bond with a volume of CNY 2.0 billion (€265 million).

  • In the second quarter, Bayer Corporation, United States, and Bayer AG issued commercial paper with a nominal volume of US$ 965 million (€834 million) and €117 million, respectively.

  • On July 10, Moody’s upgraded its outlook to “stable”.

  • The rating agencies currently assess Bayer as follows:

Rating

Rating agency

 

Long-term rating

 

Short-term rating

 

Outlook

S&P Global Ratings

 

BBB

 

A-2

 

negative

Moody’s

 

Baa2

 

P-2

 

stable

Fitch Ratings

 

BBB

 

F3

 

negative

Asset and capital structure

Bayer Group summary statements of financial position

€ million

 

Dec. 31, 2025

 

Mar. 31, 2026

 

June 30, 2026

 

Change vs. Mar. 31 (%)

Noncurrent assets

 

71,630

 

72,643

 

73,641

 

+1.4

Assets held for sale

 

23

 

16

 

25

 

+56.3

Other current assets

 

32,888

 

35,285

 

33,619

 

–4.7

Current assets

 

32,911

 

35,301

 

33,644

 

–4.7

Total assets

 

104,541

 

107,944

 

107,285

 

–0.6

 

 

 

 

 

 

 

 

 

Equity

 

26,063

 

28,962

 

29,708

 

+2.6

Noncurrent liabilities

 

45,893

 

45,522

 

45,307

 

–0.5

Current liabilities

 

32,585

 

33,460

 

32,270

 

–3.6

Liabilities

 

78,478

 

78,982

 

77,577

 

–1.8

Total equity and liabilities

 

104,541

 

107,944

 

107,285

 

–0.6

  • Between March 31, 2026, and June 30, 2026, total assets decreased by €0.7 billion to €107.3 billion.

  • Noncurrent assets rose by €1.0 billion to €73.6 billion in the second quarter. This effect mainly resulted from the acquisition of Perfuse Therapeutics, Inc., United States (goodwill +€0.1 billion and intangible assets +€0.6 billion), as well as an increase in deferred tax assets reflecting the seasonality of the Crop Science business. In addition, currency effects impacted all items.

  • Total current assets fell by €1.7 billion to €33.6 billion. The primary effects included the €1.4 billion decline in cash and cash equivalents and the €0.2 billion reduction in investments in money market funds within financial assets.

  • Equity rose by €0.7 billion compared with March 31, 2026, to €29.7 billion. This was primarily attributable to the positive income after income taxes
    (+€0.2 billion), changes – recognized outside profit or loss – arising from the remeasurement of the net defined benefit liability (+€0.4 billion), currency translation of equity items (+€0.3 billion) and the dividend payment (–€0.1 billion).
    The equity ratio advanced to 27.7% as of June 30, 2026 (March 31, 2026: 26.8%).

  • Liabilities decreased by €1.4 billion to €77.6 billion in the second quarter. The main driver here was the €0.4 billion decline in financial liabilities, comprising €2.0 billion in bond repayments, a €1.0 billion increase in commercial paper, borrowings of €0.4 billion and a positive currency effect of €0.2 billion. An additional effect was attributable to the €0.9 billion decline in provisions for variable, performance-related one-time payments to employees under the Group-wide short-term incentive (STI) program.