Corporate Outlook

Economic outlook

War weighs on global economic growth

The war in the Middle East is weighing on the global economic environment, reinforcing our expectations that the world economy will grow by a below-average, low single-digit percentage in 2026 (based on International Monetary Fund data). In addition, emerging markets and developing countries in particular are expected to see higher levels of inflation.

Corporate outlook

We are continuously evaluating the impacts of current geopolitical developments, especially in relation to the war in the Middle East. Based on current calculations, the financial effects do not have any material impact on our full-year guidance. We are constantly monitoring developments in terms of primary and secondary effects (e.g., energy and raw material prices, logistics costs and demand-related effects) to ensure we are in a position to implement appropriate countermeasures if necessary. Predicting future impacts from any additional developments that may arise in this connection remains subject to uncertainty.

Starting in 2026, the free cash flow component in our Group-wide short-term incentive (STI) program will no longer factor in net outflows arising from payments to resolve legal proceedings, which primarily relate to the PCB and glyphosate litigations. Adjusted for these payments, free cash flow is expected to amount to between €2.0 and €3.0 billion in 2026. With respect to the STI program for the Board of Management members, however, the free cash flow component will continue to factor in said payments.

We confirm our currency-adjusted Group outlook for the year 2026 as published in the Annual Report 2025.

When applying the closing rates as of March 31, 2026, instead of December 31, 2025, we project changes in currency effects with respect to the following financial KPIs: