Bayer's third-quarter Crop Science division reported flat sales of 3.88 billion euros as strong corn and soybean seed demand in Latin America offset significant declines in crop protection products across Europe and Asia, driven by adverse weather, regulatory impacts, and generic competition.
- Q3 Crop Science Sales: 3.88 billion euros (flat year-over-year), down 2.4% on adjusted basis
- Latin America Growth: Sales rose 5.6% to 2.13 billion euros, driven by summer-season corn and soybean seed demand
- Crop Protection Pressure: Fungicides and herbicides each fell 8.6%; glyphosate declined 5.3% to 701 million euros
- Regional Challenges: Europe/Middle East/Africa sales fell 22.5%; Asia/Pacific fell 11.8% due to El Niño and adverse weather
- Nine-Month Performance: Full-year sales up 3.6% to 16.35 billion euros with EBITDA margin at 24.6%
Bayer reported third-quarter Crop Science sales of 3.88 billion euros, flat with a year earlier on a reported basis, as strong corn and soybean seed demand in Latin America offset weaker crop protection sales in Europe and Asia.
Adjusted for currency and portfolio effects, division sales fell 2.4% in the three months ended Sept. 30, according to the company's third-quarter Crop Science statement, released Tuesday. Earnings before interest, taxes, depreciation and amortization (EBITDA) before special items dropped 41.3% to 101 million euros, and the margin narrowed 1.9 percentage points to 2.6%. Bayer said the third quarter typically contributes the least to full-year earnings because of seasonal factors.
Chief Executive Officer Bill Anderson said in the company's prepared remarks that the division is on track for the year.
"Looking forward, Latin America is off to a strong start to the season, and we feel well-positioned to deliver our 2026 outlook," Anderson said.
Seeds carry the quarter
Latin America sales rose 5.6% on an adjusted basis to 2.13 billion euros, driven by summer-season demand for corn and soybean seed. North American sales climbed 2.5% to 813 million euros. Sales in Europe, the Middle East and Africa fell 22.5% to 593 million euros, and Asia/Pacific sales fell 11.8% to 345 million euros.
Soybean Seed & Traits sales rose 4.5% to 576 million euros, mainly on Latin American business. Corn Seed & Traits held at the prior-year level of 792 million euros. Growth in Latin America offset lower volumes in the other three regions, where Bayer cited a reduction in planted area. The company tied the European and Asian declines mainly to adverse weather, including El Niño.
In the "Other" unit, higher canola seed volumes in North America lifted sales, while El Niño hurt the rice seed business in Asia.
Crop protection under pressure
Fungicides and Herbicides excluding glyphosate each fell 8.6% on an adjusted basis. Fungicide volumes shifted into the fourth quarter, and generic pricing pressure weighed on Latin American sales. Non-glyphosate herbicide sales fell because of regulatory impacts in Europe, weather-related declines in Asia/Pacific and generic pricing pressure in North America.
Glyphosate sales fell 5.3% to 701 million euros, mainly on lower demand in Europe, the Middle East and Africa following a prolonged period of hot weather. Insecticide sales were roughly flat, with higher North American volumes offsetting declines in Latin America tied to a streamlined product lineup.
Starting July 1, Bayer began reporting glyphosate as its own business unit after consolidating its U.S. glyphosate business into Ruveon, a St. Louis-based Bayer Group entity that now handles U.S. glyphosate pricing, production, logistics and sales, including Roundup brands.
Anderson said the core crop protection business was down for the year "due to expected portfolio exits, regulatory impacts, and increased generic pressure," compounded by a historic drought in Europe and a strong El Niño. He said Bayer further consolidated crop protection production and reduced costs during the quarter.
Nine-month results and outlook
Through nine months, Crop Science sales rose 3.6% on an adjusted basis to 16.35 billion euros, and EBITDA before special items increased 17.4% to 4.02 billion euros, a 24.6% margin. North American sales grew 10.7% on an adjusted basis to 7.17 billion euros.
Chief Financial Officer Judith Hartmann said the division remains on track to deliver within its full-year guidance ranges.
"Strong Seeds and Traits performance is expected to offset additional Core Crop Protection headwinds," Hartmann said.
She said the fourth-quarter comparison will be affected by licensing income booked a year earlier, and that 2027 will face a tougher comparison without licensing resolution income. Hartmann said Bayer continues to monitor "a mixed agricultural environment with pressured farmer economics, generic competition and weather uncertainty," though underlying demand remains resilient.
On the product side, Bayer launched the insecticide Plenexos in Mexico in October, and its Vyconic soybean trait stack advanced into the final stage of European Union import approval.
On Roundup litigation, Anderson said the proposed class settlement between plaintiffs' class counsel and Monsanto reached its final approval hearing in September, and the company is awaiting the judge's ruling. He also pointed to a recent jury verdict in the company's favor, the first glyphosate trial since the U.S. Supreme Court issued a 7-2 decision in June that struck down the failure-to-warn legal theory.
Bayer said it will provide its 2027 outlook with full-year 2026 results.
