Bayer raises 2025 outlook, expands legal provisions and advances new herbicide filing
Crop science outlook steady as Bayer balances litigation costs and prepares for icafolin launch.
USA – Bayer AG has updated its 2025 financial forecast following stronger-than-expected first-half performance and a solid showing in its Crop Science Division.
At the same time, the company is managing ongoing legal matters in the United States and moving forward with the registration of a new herbicide that could support more effective weed control for farmers.
The Germany-based company now expects full-year group sales of between 46 and 48 billion euros, up from a previous range of 45 to 47 billion euros.
EBITDA before special items is projected at 9.7 to 10.2 billion euros, also revised upward. Bayer kept its forecast for free cash flow and net financial debt unchanged.
In the Crop Science Division, Bayer maintained its earlier guidance. The company expects sales to grow by 2.2 percent on a currency- and portfolio-adjusted basis, with an EBITDA margin before special items holding steady.
Group-wide, EBITDA before special items in the second quarter came in at about 2.1 billion euros, with Crop Science contributing 0.7 billion euros.
Second-quarter sales totaled approximately 10.7 billion euros. Sales in the Consumer Health and Pharmaceuticals Divisions remained stable compared to the same period last year.
Core earnings per share increased to 1.23 euros, supported by better financial results and lower tax expenses.
However, Bayer is also dealing with mounting litigation costs in the United States. The company announced 1.7 billion euros in special items, which include 1.2 billion euros in new provisions for Roundup™-related cases.
The additional charges follow an unfavorable verdict in the Anderson et al. appeal, now under review by the Missouri Supreme Court.
As part of its plan to reduce legal risk, Bayer reached a major settlement with a plaintiffs’ law firm, bringing the number of unresolved glyphosate claims down to 61,000. Out of 192,000 total claims filed, 131,000 have either been resolved or found ineligible.
“Settlements are part of the company’s multi-pronged strategy to significantly contain the US litigation by the end of 2026,” the statement read.
For PCB-related cases, Bayer recorded 530 million euros in extra provisions, mainly linked to the Burke case and the Sky Valley Education Center in Washington state.
Most of the claims in that matter involve personal injury due to exposure within a school facility. A decision on the Erickson case from the Washington Supreme Court is still pending.
Meanwhile, Bayer has filed for regulatory approval of a new herbicide, icafolin-methyl, in the European Union. Earlier filings were submitted in Brazil, the United States, and Canada.
The product is the first new mode of action for post-emergent weed control in broadacre crops in over three decades.
“Weeds threaten food security and farmer livelihoods, which is why investing in game-changing innovations like Icafolin is so vitally important,” said Mike Graham, Head of Research & Development for Bayer’s Crop Science division.
Bayer expects to begin launching the product in 2028, with Brazil set as the first market. The company says icafolin supports lower-dose and more precise applications while maintaining high safety and environmental standards.
It is intended to work alongside existing products such as glyphosate, giving farmers another option to manage herbicide-resistant weeds and support better soil practices.
Full second-quarter results will be published on August 6.
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