Bayer (BAYN) Q1 2025 earnings summary

Executive summary

• Q1 2025 net sales were flat year-over-year at €13.7 billion, with declines in Crop Science offset by growth in Pharmaceuticals and Consumer Health; core EPS was €2.49, down 12% year-over-year.

• Free cash flow was negative €1.5 billion, an improvement of €1 billion versus last year; net financial debt increased to €34.3 billion from year-end but was down €3 billion year-over-year.

• Strategic priorities include cost management, litigation containment, pipeline launches, and workforce reduction of ~2,000 FTEs in Q1 2025.

• Full-year 2025 outlook confirmed at constant currencies, with ongoing monitoring of geopolitical, FX, and tariff risks.

Financial highlights

• EBITDA before special items was €4.1 billion, down 7% year-over-year, mainly due to lower Crop Science earnings and currency headwinds; EBITDA margin before special items was 29.7%.

• Special items of €587 million were recorded, mainly for litigation-related provisions and restructuring.

• Net income was €1.3 billion, down 35% year-over-year; core net income was €2.4 billion.

• Operating cash flow improved to €-1.0 billion from €-2.2 billion year-over-year.

Outlook and guidance

• Full-year 2025 guidance confirmed at constant currencies despite FX and tariff uncertainties; net sales expected at €45.0–47.0 billion, EBITDA before special items €9.5–10.0 billion, and core EPS €4.50–5.00.

• Crop Science sales expected to decline 2% to grow 2%, Pharmaceuticals -4% to -1%, Consumer Health +2% to +5%.

• Pharmaceuticals expected at the upper end of sales and profitability guidance, driven by launch assets.

• Special items in EBIT and EBITDA anticipated at upper end of guidance (approx. minus €1.5 billion) due to legal risks.