Bayer reported a solid second quarter, with Crop Science once again emerging as the group’s strongest performer.
The division delivered 5.5% sales growth in the first half of 2026, helped by strong demand for seeds and traits and improved profitability. EBITDA margin expanded to 31%, driven by a higher-value sales mix, licensing revenues and tighter operational execution.
Across the group, first-half sales rose 3% to €24.3bn while EBITDA before special items increased 7% to €6.6bn. The company maintained its full-year guidance.
Litigation cloud begins to lift
A major focus of the earnings call was Bayer’s progress in reducing uncertainty surrounding glyphosate litigation inherited through its Monsanto acquisition.
Anderson described a recent US Supreme Court ruling in Monsanto v Durnell as a “landmark” decision that strengthens Bayer’s position by confirming the Environmental Protection Agency’s authority over pesticide labelling requirements.
“The last 90 days have been decisive in the company’s years-long efforts to contain the litigation uncertainty,” Anderson said.
He added that lower courts had already begun applying the ruling and said the company remained committed to securing final approval for its proposed settlement process.
Bayer also addressed questions about Ruveon, the newly created entity housing its US glyphosate business. Anderson said the move is designed to make the business “nimbler” and better able to compete in the highly commoditised glyphosate market, rather than signalling an imminent divestment.
“We think it makes all the sense in the world, given the competitive state of that business, to have this sort of semi-independent entity that can really move fast and take the actions that are required to be competitive in that space.”
He added the company continues to build an innovative portfolio, pointing to the announcement of a license agreement for broad commercialization of hybrid wheat.
Debt reduction accelerates
Investors also welcomed signs that Bayer’s balance sheet is improving.
CFO Judith Hartmann highlighted a €3bn Apollo investment as an important milestone in the company’s deleveraging efforts. As a result, Bayer lowered its expected year-end net debt range to €29bn-€30bn from a previous €32bn-€33bn.
Hartmann said the company remained focused on strengthening the balance sheet while maintaining investment in pharmaceuticals, agricultural innovation and consumer health.
Leaner Bayer, but no break-up yet
Despite renewed investor interest in Bayer’s structure, Anderson pushed back on suggestions that a breakup is on the cards.
For several years, some shareholders have argued that Bayer’s Crop Science, Pharmaceuticals and Consumer Health businesses could command higher valuations as standalone companies rather than as part of a diversified conglomerate.
Anderson acknowledged that the question of structure remains under regular review but insisted management’s priority is executing against five key objectives: improving the pharma pipeline, increasing Crop Science profitability, reducing debt, resolving litigation and driving productivity through the company’s Dynamic Shared Ownership model.
“We still have these five key priorities that we identified at the time, and we’ve got really important work to do on those,” he said.
Bayer has already significantly reduced layers of management through its organisational overhaul, which Anderson claimed has transformed the company from a bureaucratic organisation into one of the least bureaucratic large companies in the sector.
“We’re not going to allow [a break-up discussion] to be a distraction for us while we’ve got this momentum,” he said.
With litigation risks easing, debt falling and Crop Science delivering stronger returns, management believes the quickest route to unlocking value is fixing the business before considering whether to break it apart.
“I look forward to spending less time on litigation and more time driving our performance forward,” a relieved Anderson summed up.
