Bayer AG raised its 2026 outlook for currency-adjusted EBITDA before special items Tuesday, citing stronger pharmaceutical performance in the first nine months despite a third-quarter net loss and cash outflow.
The German health care and agriculture company now projects €9.8 billion to €10.3 billion in the measure, up from €9.6 billion to €10.1 billion. It raised the expected margin for its pharmaceutical division to 25% to 27% from 23% to 25%, while leaving its core earnings-per-share outlook unchanged.
The guidance change reflects better-than-anticipated performance across the drug business over the first nine months of 2026, Bayer said. Separately, third-quarter pharmaceutical sales exceeded the €4.471 billion average of 14 analyst estimates compiled by Vara Research as of Oct. 16.
Sales in the division rose 8% from a year earlier to €4.680 billion. Its EBITDA before special items increased 23.6% to €1.292 billion, though higher selling expenses offset some of the gain from increased drug sales.
Nubeqa brought in €998 million, up from €622 million a year earlier, and Kerendia sales climbed to €374 million from €221 million. Bayer said higher volumes for those medicines helped counter weaker Eylea and Xarelto sales as the older products faced generic competition after patent expirations.
Bayer CEO Bill Anderson described the pharmaceutical results as “a turning point in Pharma’s growth trajectory.” Companywide sales rose 4.1% to €10.053 billion, and group EBITDA before special items increased 6.9% to €1.615 billion. Still, Bayer posted a €672 million net loss and €293 million in negative free cash flow for the quarter. The company said payments tied to legal proceedings contributed to the cash outflow.
Bayer reduced its projected full-year free cash flow deficit by €1 billion at each end of the range. It now expects negative free cash flow of €0.5 billion to €1.5 billion, compared with its earlier projection of €1.5 billion to €2.5 billion.
Its year-end net financial debt forecast fell to €28 billion to €29 billion from €29 billion to €30 billion. Net debt stood at €31.083 billion on Sept. 30, down €2.564 billion from the previous quarter. Bayer attributed much of that decline to a €3 billion payment from Apollo Global Management Inc. for a minority stake in an entity holding Bayer’s long-acting reversible contraceptives business.
Bayer’s next scheduled annual report, covering 2026, is due Feb. 24, 2027.
