Bayer Crop Science posts 17.9% EBITDA growth in Q1 2026 as soybean seed revenue doubles on Corteva licensing deal

Bayer’s Crop Science division reported first-quarter 2026 net sales of €7.558 billion, up 6.8% on a currency- and portfolio-adjusted basis, as the resolution of a multi-year licensing dispute with Corteva Agriscience unlocked a surge in soybean seed revenue and pushed the division’s quarterly EBITDA margin to a record high.

EBITDA before special items rose 17.9% to €3.014 billion. The EBITDA margin expanded 6.2 percentage points to 39.9%, in line with the targets set out in Bayer’s five-year strategic framework announced in 2025.

The principal driver was Soybean Seed & Traits, where sales doubled on a currency- and portfolio-adjusted basis. The comprehensive licensing agreement with Corteva Agriscience reached earlier in 2026 — which resolved all “freedom to operate” litigation between the two companies in North America — contributed €448 million to the division’s quarterly topline. The deal clears Bayer’s path to expand licensing activities in corn, canola and cotton, and accelerates the company’s path to royalty neutrality in 2026, two years ahead of its prior schedule.

Corn Seed & Traits grew 7.1% on higher North American seasonal volumes and gains across other regions. Crop protection results were weaker: herbicide sales fell 10.2% and fungicides declined 10.7%. Glyphosate-based herbicide revenues dropped 15.1%, continuing a multi-quarter structural trend as farmers rotate to alternative herbicide programs and generic competition intensifies.

The first-quarter results confirm that Bayer’s seed technology licensing business has become a significant earnings driver independent of its traditional crop chemistry portfolio — a shift that positions the division differently as Corteva prepares to spin off its own seeds unit, Vylor, later in 2026.

Source: iGrowNews