Bayer CEO: 2025 Will Be 'Most Difficult' Year In Turnaround Plan, Expects Improved Performance From 2026 Onwards

On Wednesday, Bayer AG BAYRY reported fourth-quarter 2024 adjusted EPS of $0.28, missing the consensus of $1.00.

The company reported core earnings per share of 1.05 euros, down from 1.85 euros a year ago.

The crop science and drug company reported sales of $12.52 billion (11.73 billion euros), beating the consensus of $11.30 billion.

For the fourth quarter, Bayer reported a 22% fall in adjusted EBITDA to 2.35 billion euros.

CEO Bill Anderson called 2025 a “pivotal year” for the company. “It is the second year in Bayer’s turnaround and will be the most difficult in terms of financial performance, with net sales roughly in line with, and earnings and free cash flow behind the prior year. The company expects improved performance from 2026 onwards,” he said.

The Bayer Group achieved its adjusted guidance for 2024. “We have three great businesses with attractive long-term prospects,” Anderson said at the Financial News Conference on Wednesday. “However, to get to the opportunities ahead, we first need to steer through what will continue to be challenging times,”

Bayer’s Crop Science division aims to improve profitability through key measures in product development, research, production and sales. By 2029, the division expects to add over €1 billion in annual earnings. The plan also includes a broad cost-saving initiative.

Bayer expects the division to grow faster than the market, with innovation contributing more than €3.5 billion in additional sales by 2029. By then, it aims for an EBITDA margin in the mid-20% range, excluding special items.

The German conglomerate forecasts 2025 adjusted EBITDA of between 9.3 billion and 9.8 billion euros and core earnings per share of 4.25 to 4.75 euros.

The company’s operational belt-tightening efforts generated 500 million euros in savings in 2024 and is expected to deliver another 800 million euros this year.

Bayer said the pharma division should return to growth in 2027 and expand margins beginning in 2028, with sales of Nubeqa and Kerendia expected to reach a combined 2.5 billion euros in 2025.

Price Action: BAYRY stock is up 6.13% at $6.58 at the last check Wednesday

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