Publication date: 23-11-2025
Bayer is one of Germany’s oldest life-science companies, founded in 1863 and known worldwide for Aspirin. Over time the group expanded into two other areas that now define its structure: pharmaceuticals and crop science. Today Bayer operates in more than 80 countries, with sales coming mainly from North America and Europe, while production is spread across Germany, the U.S., Brazil and other major agricultural regions. The company’s scale and diversification make it one of the largest global players in both prescription medicines and agricultural technologies.
The Bayer factory in Leverkusen
Bayer’s business is divided into three main segments. Pharmaceuticals accounts for roughly 40 % of revenue and almost half of EBITDA. It includes prescription medicines in cardiology, oncology, women’s health and radiology. This segment has been very profitable for many years thanks to two key drugs: Xarelto, a blood thinner widely used for cardiovascular conditions, and Eylea, a biologic used in ophthalmology. Both drugs have historically provided a large share of the segment’s earnings. However, the situation is changing. Xarelto is already facing competition from generic versions, and Eylea will lose patent protection in 2025–2026. Sales will gradually shift toward newer products such as Nubeqa (prostate cancer) and Kerendia (kidney disease), but these are still too small to fully replace the older blockbusters. As a result, the pharma segment is expected to stay broadly stable in 2025 and to decline slightly in 2026 before new medicines gain scale.
The Crop Science division is the largest part of the group, generating about half of total revenue and around 45 % of EBITDA. This business is based largely on Monsanto, which Bayer acquired in 2018, becoming the world’s biggest producer of genetically modified seeds and herbicides. The most famous product of this division is glyphosate, a weed-killer sold under the brand Roundup. Glyphosate became successful because Monsanto developed seeds for soy and corn that were resistant to the chemical, allowing farmers to kill weeds without harming crops. These innovations reshaped U.S. agriculture and created strong market positions for decades. Today the division remains highly competitive in seeds, traits and crop protection products, although price pressure and regulatory challenges are expected to keep revenue growth flat in 2025–2026. Profitability is supported by a wide product range, strong R&D and high barriers to entry.
The third division, Consumer Health, contributes about 10 % of sales and EBITDA. It includes non-prescription brands such as Aspirin, Claritin and Aleve. Demand is stable and grows slowly each year, making this segment a steady cash generator. Some investors have suggested selling Consumer Health to reduce leverage, and analysts estimate it could bring around €10 billion. However, management currently prefers to keep the division and focus instead on cost savings and operational improvements.
Bayer product portfolio
A major part of Bayer’s story is its long-running litigation related to glyphosate and PCBs. Glyphosate is considered safe by U.S. and EU regulators, but in 2015 a research agency linked it to a type of cancer called non-Hodgkin’s lymphoma. This triggered thousands of lawsuits in the U.S. PCBs (polychlorinated biphenyls) are industrial chemicals that were widely used in the United States before 1979 — mainly in old electrical equipment (like transformers and lighting ballasts) and in paints, sealants and caulking found inside school and municipal buildings. Monsanto produced PCBs decades before the company was acquired by Bayer, and U.S. law allows people to file claims against a manufacturer if these chemicals are still present in buildings today and allegedly caused health issues. As a result, Bayer inherited these legacy cases when it bought Monsanto in 2018, even though the products were discontinued many years earlier. Together the glyphosate and PCBs issues have resulted in very high legal costs. Between 2019 and 2023, Bayer paid about €13 billion in settlements and has set aside additional reserves. In 2025, the company recorded around €1,7 billion of new provisions, pushing leverage temporarily higher. According to S&P, adjusted debt-to-EBITDA is expected to be around 4,5–4,7× in 2025, improving to 3,5–3,7× in 2026 if provisions do not repeat at the same scale.
Despite these pressures, Bayer maintains strong liquidity. The group holds several billion euros in cash, has access to a €5 billion credit facility, and continues to issue debt successfully in Europe, China and Switzerland. Dividends have been reduced by 95 % to preserve cash, and management is prioritizing debt reduction. Fitch and Moody’s both highlight that Bayer’s scale, diversification and global footprint continue to support the credit profile even in a difficult litigation environment. All three major agencies assign investment-grade ratings, although with negative outlooks because of litigation uncertainty and the upcoming revenue pressures in pharmaceuticals.
Looking ahead, Bayer’s performance will depend on how quickly new drugs can grow, how successfully Crop Science can stabilize margins, and whether the company can resolve the remaining legacy cases at predictable cost. Geographic and business diversification provide resilience, and restructuring measures should improve efficiency from 2026 onward. The company’s long history, R&D strength and global distribution network remain important competitive advantages.
The bond Bayer 4,625 % due May 2033 is a senior unsecured euro-denominated issue. It is almost non-callable, with only a short call option a few months before maturity.
as of 30-09-2025
EUR bn
| Column 1 | Column 2 | Column 3 | Column 4 | Column 5 | Column 6 |
|---|---|---|---|---|---|
| Assets | 110,9 | EBITDA Margin | 20 % | CFO/Debt | 0,1 |
| Revenue LTM | 45,9 | Net debt | 32,7 | FCF LTM | 3,1 |
| EBITDA LTM | 9,4 | Net Debt/EBITDA | 3,5x | Equity | 32,0 |
| Net Profit LTM | -2,6 | EBITDA/Interest | 3x | Debt/Equity | 1,3x |
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