The Bayer Group is on track after an encouraging first half of the year. "We are entering a strong second half of 2025, which will be characterized by further progress on all strategic priorities, continued launches, and addressing geopolitical and currency headwinds," CEO Bill Anderson said during the company's half-year financial report presentation on Wednesday. "Thanks to our year-to-date performance in the pharmaceutical business, we are raising our 2025 guidance, adjusted for currency effects, for the Group on both sales and earnings."

This guidance takes into account the financial impacts currently expected from the latest geopolitical developments. At the same time, the company anticipates significant currency fluctuations, which would have a negative impact on sales and earnings and a favorable impact on net financial debt.

On Thursday, July 31, Bayer published an early update, providing information on key financial performance indicators for the second quarter and raising its annual guidance for sales and earnings, adjusted for currency effects. As part of this announcement, the company also reported increased provisions and liabilities for litigation in the United States.

"We confirm our goal of significantly reducing litigation risk by the end of 2026," Anderson said Wednesday. As part of its multi-pronged strategy, the company continues to move full steam ahead in an effort to limit its exposure to litigation, he added. As previously reported, Bayer set aside approximately €1.2 billion in additional provisions for glyphosate and approximately €530 million in provisions and liabilities for PCBs in the second quarter.

Group revenue amounted to €10.739 billion in the second quarter of 2025, up 0.9% on a currency- and portfolio-adjusted basis (adjusted for currency and portfolio effects). The negative currency effect was €550 million (second quarter of 2024: €240 million). EBITDA before special items amounted to €2.105 billion (-0.3%), impacted by a negative currency effect of €184 million (second quarter of 2024: €129 million). EBIT amounted to €13 million (Q2 2024: €525 million), after net extraordinary expenses of €981 million (Q2 2024: €490 million), primarily related to provisions for legal disputes, impairment reversals in the Crop Science division, and restructuring expenses. Net income amounted to -€199 million (Q2 2024: -€34 million). Net earnings per share increased 30.9% to €1.23, primarily due to improved financial performance and lower tax expense.

Free cash flow decreased by 90.2% to €125 million. This decline was primarily due to lower operating cash flow, primarily attributable to higher payments for the Group-wide Short-Term Incentive (STI) program and the effects of the quarterly change in the Crop Science Division's receivables write-down compared to the previous year. Net financial debt as of June 30, 2025, amounted to €33.274 billion, a 2.9% decrease compared to March 31, 2025, primarily due to positive currency effects. Compared to June 30, 2024, net financial debt decreased by 9.5%.

In the agricultural sector (Crop Science), sales increased by 2.2% (adj. foreign exchange and portfolio) to €4.788 billion. Corn Seed & Traits sales increased by 29.5% (adj. foreign exchange and portfolio) thanks to higher global prices and the expansion of cultivated acreage. Operations in North America also benefited from the gradual reduction in volumes starting in the first quarter, due to a strategic adjustment of the distribution network. As expected, sales of Soybean Seed & Traits and Cotton Seed decreased by 18.1% and 25.5% (adj. foreign exchange and portfolio), respectively, due to the discontinuation of labeling for dicamba-based crop protection products in the United States. The overall increase in sales for the strategic Seed and Traits entities more than offset the overall decline in crop protection product sales. The Insecticides segment, for example, was impacted by the expiration of the Movento™ registration in Europe, with sales declining 13.1% (adj. foreign exchange and portfolio). Conversely, herbicide sales increased 1.4% (adj. foreign exchange and portfolio), with sales of glyphosate-based products remaining at the previous year's levels, thanks to increased volumes and lower prices.

Crop Science's EBITDA before extraordinary items increased 32.3% to €693 million, largely due to the gradual reduction in volumes compared to the previous quarter in the corn seed business and cost reductions. These positive effects more than offset the negative impact of regulatory challenges. The EBITDA margin before extraordinary items increased 4.0 percentage points to 14.5%.