Bayer Lifts 2026 EBITDA Outlook as Pharma Division Recovers

what happened

German group Bayer raised its full-year guidance for adjusted EBITDA. It now expects a range of 9.8 to 10.3 billion euros, excluding currency effects, up from a previous forecast of 9.6 to 10.1 billion euros. The company announced the change on Tuesday, and Dow Jones Newswires reports that the pharmaceutical division was the main driver.

According to Bayer, the pharma arm entered a new cycle of growth in sales and profit, supported by demand for its prostate cancer drug Nubeqa and kidney medicine Kerendia. The division's adjusted EBITDA margin is now expected at 25% to 27%, compared with the earlier 23% to 25%. This helped offset pressure in the crop science and consumer health businesses, which Bayer said are performing in line with targets.

Third-quarter sales reached 10.05 billion euros, up 4.1% year on year. Analysts had expected 9.93 billion, according to consensus compiled by Vara Research. The quarterly net loss narrowed to 672 million euros from 963 million a year earlier, reflecting impairment charges and litigation costs. Excluding exceptional items, EBITDA grew 6.9% to 1.615 billion euros.

why it matters

The upgrade matters for investors because it rests on pharmaceuticals rather than one-off items. Bayer also updated its free cash flow guidance to an outflow of 500 million to 1.5 billion euros and expects net debt at the end of 2026 of 28 to 29 billion euros, which helps gauge the group's debt burden.

market impact

Bayer shares: higher guidance and pharma growth support the stock

• ▲Bayer shares pressure up — raised EBITDA guidance and growth in the pharma division

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