Bayer's Litigation Costs in Focus -- Earnings Preview

Dow Jones11-11

By Billy Gray

Bayer is scheduled to report results for the third quarter on Wednesday. Here is what you need to know.

SALES FORECAST: The German pharmaceutical and agricultural group is expected to post third-quarter sales of 9.69 billion euros ($11.20 billion,) according to median consensus estimates provided by Vara Research. Bayer reported sales of 9.97 billion euros for the same period last year.

PROFIT FORECAST: Bayer is expected to post a third-quarter net loss of 413 million euros, narrowing from a net loss of 4.18 billion euros in the same period last year, when the company booked impairment losses at its crop-science business. The group is forecast to post earnings before interest, taxes, depreciation and amortization before special items--a key company metric--of 1.27 billion euros. For the third quarter of last year, Bayer made Ebitda before special items of 1.25 billion euros.

Shares in Bayer rose 11% during the third quarter and were up 37% since the start of the year through Monday's close.

WHAT TO WATCH

--U.S. LITIGATION: Bayer, since its 2018 acquisition of Monsanto, has been embroiled in litigation in the U.S. that has included accusations by thousands of former users that its Roundup weedkiller causes cancer, and that as of May had cost the company about $10 billion in legal payouts. "The outcome of pending appeals and the Erickson case before the Washington State Supreme Court will remain key watchpoints," analysts at U.S. bank Jefferies said. Bayer in August pledged to significantly contain litigation risk by the end of 2026.

--CURRENCY AND CROP HEADWINDS: Bayer said earlier this year that it expected significant currency fluctuations to weigh on sales and profits, in addition to cyclical agricultural weakness. "We expect [the third quarter] to be the softest quarter of the year due to the usual crop seasonality," Morgan Stanley analysts said.

Write to Billy Gray at william.gray@wsj.com

(END) Dow Jones Newswires

November 11, 2025 07:06 ET (12:06 GMT)

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