Bayer annual losses top €1bn after weedkiller lawsuit settlements

(Sharecast News) - Bayer reported an operating loss of more than €1bn in 2025 as annual profits were wiped out by a €3.55bn hit from legal charges in the fourth quarter after resolving a years-long litigation related to its Roundup weedkiller. The German pharmaceutical and biotechnology company, which last month agreed to pay $7.25bn to settle more than 100,000 lawsuits claiming that Roundup caused cancer, reported a net loss of €3.76bn in the fourth quarter, compared with a €355m loss the year before.

That pushed the full-year earnings before interest and tax to a loss of €1.08bn in 2025, compared with a loss of just €71m in 2024.

Bayer said it has taken steps to "significantly contain litigation by the end of 2026", though settlements would result in negative free cash flow of -€1.5bn to -€2.5bn this year, compared with FCF of €2.1bn in 2025.

Group sales totalled €45.58bn in 2025, down slightly from €46.61bn in 2024, representing the firm's third straight years of falling sales. Excluding litigation and other special items, EBIT fell to €5.11bn from €5.44bn.

Bayer held on to its dividend payment of 11 cents a share.

"We anticipate that litigation impacts will burden our cash position in 2026 and lead to negative free cash flow for the year. Nonetheless, we expect a solid performance, with robust developments in sales and earnings across our businesses," said chair Bill Anderson.

Bayer shares were down 5.1% at €36.37 by 1455 GMT.