Agricultural Conglomerate Bayer Confident In Long-Term Outlook Despite Litigation Risks

On Wednesday, Bayer AG (OTC:BAYRY) reported adjusted earnings of 17 cents per ADS (57 cents in euros), up from 7 cents a year ago (24 cents euros).

Sales reached $11.29 billion, beating the consensus of $10.93 billion.

Group sales came in at 9.660 billion euros in the third quarter of 2025, up 0.9% on a currency- and portfolio-adjusted basis.

In the agricultural business (Crop Science), sales increased by 1.3% to 3.858 billion euros.

The division registered significant gains at Corn Seed & Traits, with sales

up 22.4% thanks to higher volumes in all regions.

Also Read: Agri-Science Giant Corteva Eyes Breakup To Shield Seed Unit From Future Risks: Report

Sales of prescription medicines (Pharmaceuticals) totaled 4.335 billion euros, representing a 0.4% increase. The division again registered significant gains for Nubeqa (prostate cancer drug), and Kerendia, a drug for chronic kidney disease associated with type 2 diabetes, as well as heart failure.

Sales of self-care products (Consumer Health) increased by 2% to 1.415 billion euros. Growth was held back by an increasingly challenging environment in key markets in North America and/Asia-Pacific. Business was mainly up in the Dermatology, Digestive Health, and Pain & Cardio categories. Sales at Allergy & Cold were down 7.8%.

Adjusted EBITDA rose by 20.8% to 1.511 billion euros, mainly thanks to earnings growth at the Crop Science Division.

CEO Bill Anderson highlighted the resilience of the agricultural business and the Pharmaceuticals Division's topline, while acknowledging that Consumer Health is navigating an increasingly challenging market environment. "Overall, in a pivotal year, we're in a strong position to deliver the 2025 Group guidance we upgraded last quarter."

Guidance

The German pharmaceutical and agricultural conglomerate on Wednesday said that it had reached a number of settlements, and, as expected, this was then followed by a moderate increase in glyphosate case filings.

The update resulted in additional provisions of 1.06 billion euros and higher litigation costs.

In view of the additional allocations to provisions for litigations, Bayer expects a 2025 adjusted EBITDA loss of 3.5 billion-4 billion euros compared to the previous forecast of a loss of 2.5 billion-3.5 billion euros.

Adjusted EBIT loss is expected to be 2.5-3 billion euros compared to the prior forecast of 1.5 billion to 2.5 billion euros.

Bayer is making significant progress, Anderson said, adding that he is confident the company will be able to contain the litigation risk by the end of 2026 significantly. "Overall, we know that we have a crucial and highly dynamic phase ahead of us," Anderson explained.

Price Action: BAYRY stock is 6.13% at $8.40 at the last check on Wednesday.

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