Key Takeaways
- Bayer Crop Science Division reported Q1 2026 sales of 7.558 billion euros, up 6.8% on a currency- and portfolio-adjusted basis, with Soybean Seed & Traits sales doubling (Fx & portfolio adj.) largely due to the resolution of a licensing agreement with Corteva in North America, contributing 448 million euros to the topline.
- Crop Science EBITDA before special items rose 17.9% to 3.014 billion euros, with the EBITDA margin expanding 6.2 percentage points to 39.9% — in line with the strategic objectives of Bayer's Five-Year Framework announced in 2025.
- Corn Seed & Traits grew 7.1% (Fx & portfolio adj.), driven by higher volumes at the start of the North American season and gains across all other regions, while crop protection declined as expected, with Herbicides down 10.2% and Fungicides down 10.7%.
- Glyphosate-based herbicide sales fell 15.1% (Fx & portfolio adj.), continuing a multi-quarter structural decline; the Soybean Seed & Traits business partially offset this through price recovery following the return of the dicamba label in the United States.
- At Group level, Bayer reported Q1 2026 sales of 13.405 billion euros (+4.1% Fx & portfolio adj.) and net income of 2.763 billion euros, more than double the prior-year figure, though free cash flow came in at minus 2.320 billion euros driven by 2.002 billion euros in legal settlement payments related to PCB and glyphosate litigation.
Bayer reported first-quarter 2026 results on Tuesday, with its Crop Science Division leading group performance on an earnings basis. Crop Science posted a 17.9% increase in EBITDA before special items to 3.014 billion euros, supported by a doubling of Soybean Seed & Traits revenues and solid Corn Seed & Traits growth, partially offset by expected declines across the crop protection portfolio.
Bayer Crop Science: Seed and Traits Drive Strong Margin Expansion
Crop Science sales reached 7.558 billion euros in Q1 2026, up 6.8% on a currency- and portfolio-adjusted basis. The standout performance came from Soybean Seed & Traits, where revenues doubled (Fx & portfolio adj.), largely reflecting the previously announced resolution of a licensing agreement with Corteva in North America. That resolution contributed 448 million euros to the division's topline. The Soybean Seed & Traits business also benefited from price recovery following the reinstatement of the dicamba label in the United States, which had been a source of uncertainty in prior periods.
Corn Seed & Traits grew 7.1% (Fx & portfolio adj.), driven by higher volumes at the start of the North American planting season and growth across all other regions. The EBITDA margin before special items for Crop Science expanded by 6.2 percentage points to 39.9%, reflecting both the strong seed and traits performance and a decrease in cost of goods sold driven by efficiency programmes. A negative currency effect of 277 million euros (Q1 2025: 26 million euros) partially offset the underlying improvement.
Crop Protection Declines as Expected
Crop protection revenue declined across all major categories in Q1 2026, in line with Bayer's previously communicated expectations. Herbicides fell 10.2% (Fx & portfolio adj.), with glyphosate-based products recording a steeper decline of 15.1% (Fx & portfolio adj.) as structural volume and pricing pressures continued. Fungicides were down 10.7% (Fx & portfolio adj.). Bayer characterised these declines as expected and consistent with its strategic trajectory for the crop protection business within the Five-Year Framework.
“We're pleased with how our businesses started the year and we're confirming our currency-adjusted outlook for 2026. We continue to advance our plan and we're dialed in on delivering our commitments in the current year,” said Bill Anderson, CEO of Bayer.
Group Performance and Legal Settlement Outflows
At Group level, Bayer reported Q1 2026 sales of 13.405 billion euros, up 4.1% on a currency- and portfolio-adjusted basis. Group EBITDA before special items rose 9.0% to 4.453 billion euros. Net income came in at 2.763 billion euros, more than double the prior-year level, supported by net special gains of 324 million euros that included the 250 million euro sale of the global Avelox business. Core earnings per share climbed 12.9% to 2.71 euros.
Free cash flow was negative at minus 2.320 billion euros, primarily driven by 2.002 billion euros in net outflows related to legal settlement payments for PCB and glyphosate litigation. Net financial debt rose 9.0% from year-end 2025 to 32.518 billion euros as of March 31, 2026, though it remains 5.1% below the level recorded at March 31, 2025.
Bayer 2026 Full-Year Guidance
Bayer confirmed its currency-adjusted full-year 2026 outlook. Applying March 31, 2026 exchange rates, the company now expects Group sales of 44.5 to 46.5 billion euros, EBITDA before special items of 9.4 to 9.9 billion euros, and core earnings per share of 4.10 to 4.60 euros. CFO Wolfgang Nickl noted the revised ranges reflect currency effects only and cautioned that foreign exchange volatility is expected to continue through the remainder of the year.
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